public works projects drive growth in panama

Public Works Projects Drive Growth in Panama

By www. http://robertgirga.com/RobertGirga/

Public Works Projects Drive Growth in Panama

The economy in Panama grew at 6.8 % rate in August of 2012.

The worst recession in 75 years missed Panama as its economic growth rate dipped to 3.5% and then rebounded.

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A major reason for the continued economic expansion in Panama is infrastructure driven.

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Public works projects such as the Panama Canal Expansion and the new Metro 1 combination subway and elevated train are main factors in the continued growth of Panama.

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However, Panama also is a magnet for foreign investment.

For several years Panama has had the highest per capital rate of foreign investment of any nation in Latin America.

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Transportation, Hotels, Banking, Insurance, and Catering

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Transportation, Hotels, Banking, Insurance, and Catering

Not only public works projects drive growth in Panama.

The fact that the Panama Canal is here makes Panama a hub for container shipping and reshipping.

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The country is a tourist magnet and a combination of business travelers and tourists fill the hotels and give the catering industry a boost.

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In addition, the Panama City banking district, “bancaria,” is as closely packed with banks as any outside of Zurich.

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Panama has a thriving insurance industry as well.

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Not Just One Year

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Not Just One Year

While public works projects drive growth in Panama this year the country’s economic growth is not a flash in the pan.

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Its growth rate in 2011 was 10.5% for the year.

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Cars and Inflation

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Cars and Inflation

There have been two obvious results of prosperity in Panama.

One is that there are a lot more cars on the streets of the capital city.

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Estimates have been that 4,000 new cars hit the streets of “ciudad Panamá” every month.

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Thus the country is converting its old US school bus system of buses, the diablos rojos or red devils, to modern buses and they are building a state of the art metro system.

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Along the way this author’s “egg index” has doubled in the last five years.

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The egg index, by the way, is the cost of a dozen grade A large eggs at the El Rey supermarket a block away for this author’s home.

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Not only the cost of eggs has gone up but real estate prices as well.

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One who might wish to invest in Latin America could do worse than to look to the growing economy at the cross roads of the Americas, Panama.

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For more insights and useful information about Panama, Latin American investments, and more feel free to contact us at www.RobertGirga.com.

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