Panama Republic Properties

2009-10-26T07:03:00.000-07:00

THE PANAMA PERSPECTIVE

OCTOBER 2009

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PANAMA IS IN THE INTERNATIONAL NEWS AGAIN - Panama will have Latin America's highest GDP growth in the five-year period starting next year, while Venezuela will have the lowest, according to a Latin Business Chronicle analysis of new forecasts from the International Monetary Fund.

My friend and Editor-in-Chief, Joachim Bamrud publishes one of the best sources for important events in Latin America. Latin Business Chronicle is the one-stop source on Latin America's business, technology and politics. With his permission, I bring you this part of this very well written and important forecast for Panama.

Wednesday, October 07, 2009

Growth Champions 2010-14: Panama, Peru

Panama, here represented by capital Panama City, will likely see the highest economic growth in Latin America in the 2010-14 period. (Photo: DSaso)

Growth Champions 2010-14: Panama, Peru ');">

Mexico will outperform Brazil the next five years, while Panama will lead Latin America in GDP growth, the IMF forecasts.

BY CHRONICLE STAFF

Panama will have Latin America's highest GDP growth in the five-year period starting next year, whileVenezuela will have the lowest, according to a Latin Business Chronicle analysis of new forecasts from the International Monetary Fund.

Other growth stars include Peru, theDominican Republic and Chile. On the opposite end, top losers includeEcuador, Honduras and Argentina, our analysis shows.

LATIN AMERICAN GROWTH

All in all, Latin America is expected to grow by an average of 3.8 percent in the five-year period 2010-14. That’s higher than the world average of 3.3 percent. It will also be considerably better than the expected growth rates in developing markets like the United States (2.3 percent), Canada (2.7 percent), United Kingdom (2.4 percent), Germany (1.4 percent) and Japan(2.0 percent). And while Latin America will lag other emerging areas like Africa and the Middle East, it will outperform Central- and Eastern Europe.

Panama will grow an average of 6.1 percent in the period 2010-14. Peru follows with 5.6 percent growth in the same period.

While Panama and Peru have been the growth stars in Latin America the past few years, the five-year outlook going forward also includes countries like the Dominican Republic and Chile. The Dominican economy – the largest in the CAFTA trade block -- should grow by an average of 5.2 percent, while that of Chile will likely expand by 4.9 percent in the five-year period through 2014.

Sources: International Monetary Fund (World Economic Outlook, October 2009), Latin Business Chronicle (calculation of average 2010-14).

2009-10-23T13:27:00.000-07:00

What it’s Really Like to Expatriate

By Mark Nestman

There are a lot more former U.S. citizens than there once were. Americans fed up with paying tax—and their government—are voting with their feet. And they're doing it in much greater numbers than ever before.
Why might you wish to give up your U.S. citizenship? Primarily, because doing so is the only way that you can eliminate your lifetime obligation to pay U.S. taxes, no matter where you live.
But expatriation is a major decision. It means, for instance, that you no longer have the automatic right to enter or live in the United States. You'll need to get a visa to do so, unless your non-U.S. passport qualifies you for visa-free entry. In all cases, the Department of Homeland Security can deny you re-entry to the United States, and is under no obligation to tell you why.
However, the actual process of expatriation isn't as arduous as you might think.
You're likely to encounter bureaucratic incompetence, unexplained delays, and rampant stupidity. But giving up your U.S. nationality is a legal right; one that even the inane employees of the Department of State understand.
Here's one account my colleague Bob Bauman recently received from a now-former U.S. citizen on how the expatriation process really works:
As you wrote, the first step is to find alternative citizenship. After attending a Sovereign Society meeting, I decided that my best bet was to gain citizenship in St. Kitts & Nevis by purchasing a property there for an amount over $350,000. Then, I paid another $50,000 for two additional family members to apply for citizenship. This whole process, including closing on the property, application, review of paperwork, citizenship, then waiting for issuance of the passport, took about nine months.
After moving all of my assets whose title I could change or move offshore, I purchased a home and moved to Panama. Then it came time to surrender my citizenship. From everything I could find on-line or in any books, I was expecting the surrender process to be rather grueling, including meeting one on one with a consular official sitting me under a bright light, interrogating me about reasons and taxes, then almost beating me with a rubber hose. We are all aware of the onerous threats of what IRS can do if we have the nerve to try to escape the plantation.
Bob, I was absolutely dumbfounded at how EASY it really was.
No problems, no questions about anything, they were simply willing to cut me free. I had thought I wanted an attorney with me, so I would have some idea which questions I legally had to answer and which I could refuse to answer. It was just not necessary. I believe IRS and the State Department tries to scare the hell out of us so we won't even try to surrender citizenship, but the process is far different than I envisioned.
There are a total of five forms needed. All are available on-line on the State Department Web site. The numbers for these forms are DS-4079 through DS-4083. You complete these forms, and then take them along with your U.S. passport, birth certificate, Social Security card and new passport to the embassy. If you are smart, you will also bring a typed letter explaining your reason for wanting to expatriate.
Do not say ANYTHING about taxes. My reasons were that I abhorred socialism, loved the Constitution, but was unbelievably sorry that we no longer followed it. Then a clerk will re-type all the forms. This took about two hours because of numerous typographical errors. It is important to proofread every answer and every single line. It took something like 10-12 different efforts to get all five forms finally completed correctly.
A consular representative then came to the window, asked for my U.S. passport, asked me if I was really the person who wanted to expatriate, and whether I understood the consequences. Then he signed a few papers, took my passport and said good-bye. That was it!
Oh, he also told me I should contact the IRS to inform them of what I had done. He said I would receive my certificate of loss of nationality in about four months. He never asked me ANYTHING about taxes or finances.
After a follow-up call to the embassy four months later, I was told I could return and pick up my official certificate of loss of nationality. They returned my U.S. passport with holes punched in it. The next day I returned to the embassy to apply for a 10-year, unlimited visit VISA to come to the United States. It was approved the same day. I also applied for Social Security because I was now old enough to receive it. You do NOT surrender your right to Social Security benefits by expatriating.
I thought it might be helpful for you to know what they ACTUALLY do to those who wish to surrender citizenship. Regardless of how intimidating they want you to believe this process can be, at least in my case, NOTHING happened.
I am now a free, sovereign citizen of the world. St. Kitts & Nevis charges me zero income tax, zero capital gains tax, and zero death tax. I don't even have to file a tax return any longer for ANYONE. Panama leaves me alone, so long as I pay my property tax and sales tax, and the U.S. no longer "owns" me.
My St. Kitts & Nevis passport gets me almost anywhere in the world that I could have gone with my former U.S. passport. With my 10-year visa, I can come back to visit the U.S. whenever I want. Believe me, I don't want or need to come back very often, and there are lots of nice other places to see in this world. And, if we are both on the same plane hijacked by terrorists, they'll kill you long before me.
I have the very best of all worlds. I live virtually tax-free in a beautiful country. I actually have more freedom and liberty as a guest resident of Panama than I did as a citizen of the United States.
I simply don't understand why there are not MILLIONS of Americans giving up their citizenship. If only they knew how EASY it is, how practical it is and how much better for their financial health, there would be lines around the block at every U.S. embassy from those who realize there are better choices than remaining a citizen of the USA.

Businessweek-Why Panama is the new Florida

2009-07-13T06:30:00.001-07:00

Panama's quality health care, low costs, and proximity to the states are attracting American professionals as a retirement haven

Prospective retirees: Panama wants you. The pitch? A plane ride just 21/2 hours from Miami enables the newly poor to swap a wretched retirement in the U.S. for one befitting a royal in the balmy Central American nation. Cash out! Emigrate! Feel rich! Panama—the new Florida.

Spin aside, Panama is increasingly popular among retirement-age types looking to hedge against—or skip out on—the recession. The Migration Policy Institute, a Washington-based think tank that studies the movement of people around the world, says the chief factors prodding professional-class Americans to flock to Panama include its First World health care available at Third World prices and the country's pensioner program, which offers some of the deepest retiree discounts in Latin America. Seniors get up to half off on nearly everything, including movies, motels, doctors' visits, plane tickets, professional services, and electric bills. Expats also pay no tax in Panama on foreign income. Nor are they required to pay property tax for the first 20 years.

Panama Property to see Accelerating Growth by August 2009-04-30

2009-05-07T08:50:00.002-07:00

Property Abroad

The country has been unaffected by the credit crunch, and the property market kept afloat by undeterred American retirees. Because of this, prices are largely un-dented, and transaction volumes remain steady, said emerging markets analyst Julie Liddle, a spokesperson for the portal.

"Panama property is still selling at a steady rate to American retirees and lifestyle buyers. Prices have been largely unaffected by the global downturn, because there has hardly been a downturn. Around the world people are realising that property investment opportunities still exist abroad”, she explained.

"At the same time, Brits and Europeans tire of the abysmal interest rates and look at the better returns on offer from properties, and the latter will be further spurred on by the strengthening of the Pound. We predict that all this will evolve into a perfect storm, pushing investors to buy in the hottest markets in the next 2-4 months; and Panama will be high on that list," she finished.

Property Abroad.com is currently advertising dozens of properties for sale in Panama, with prices starting from £41,000. Unlike many other UK based portals, Property Abroad doesn't just have off plan property, and not only property in the cities, the portal has dozens of resale properties, properties in the major cities, and throughout the rural areas of Panama. The portal even has a selection of commercial opportunities, prices up to £10million.

About Property Abroad

Property Abroad is rapidly growing into one of the best known, trusted and most successful overseas property portals in the U.K. With a slick dynamic site and very reasonable rates Property Abroad currently has among the most extensive worldwide property listings on the net.

Panama's economy grew 2.59 percent in February 2009-04-23

2009-05-07T08:50:00.001-07:00

Thomson Reuters

PANAMA CITY, April 23 (Reuters) - Panama's economy slowed dramatically in February to grow at a 2.59 percent rate from the same month a year earlier as the global economic crisis bit, the government said on Friday.

Fueled by luxury apartment construction, U.S.-Asia trade through the Panama Canal and a robust banking sector, Panama's dollarized economy led Latin America with near or above double-digit growth the last two years.

Analysts expect 2009 growth to fall to 3 percent or less as credit dries up, canal traffic drops and activity in Panama's large Caribbean free-trade zone slows.

'Panama has enjoyed extraordinary performance during the last six years and especially in the last two years the economy has had an accelerated and maybe even overheated growth,' said Domingo Latorraca, a consultant at Deloitte and former vice minister of economy.

April government reports showed new construction starts were down, stoking fears of a spike in unemployment, which so far remains near historical lows.

A $5 billion expansion of the canal that cranks into full gear later this year, as well as plans by both leading candidates for Panama's presidency to push infrastructure and housing projects, could mitigate job losses, analysts say.

'In Panama a crisis does not exist at this moment,' said Adolfo Quintero, an economist at the University of Panama. 'One of the elements of the crisis in other countries is unemployment.'

Government spending will be scrutinized this year as revenue is expected to drop, straining public coffers that have recently been in the black.

'I believe fiscal sustainability will be put to the test the next few years,' said Latorraca. 'The fiscal health the state has had in the last three or four years is a result of an important increase in income, not of discipline in expenditures.'

(Reporting by Sean Mattson; Editing by Dan Grebler) Keywords: PANAMA ECONOMY/

(R.Campbell@thomsonreuters.com; +52 55 5282 7142; Reuters Messaging: robert.campbell.reuters.com@reuters.net)

New Highway from Panama City to Colon Opens Today

2009-05-04T03:28:00.001-07:00

Wednesday, April 29 2009 @ 02:25 PM EDT
Contributed by: Don Winner
Views: 338

By Kathyria Caicedo for Telemetro Reporta - The new highway from Panama City to Colón will be officially opened today. The thousands of people who have to drive to Colón every day to work will be able to use the new route as of this afternoon. The new highway will be named after “Don Alberto Motta Cardoze" and will be opened this afternoon. According to official information from the secretary of State Communications, Erick Rodríguez Auerbach, the official first drive of the new highway will occur at 3:30 pm, but there will not be any official ceremony held.

Hoy, se dará la apertura de la Autopista Panamá-Colón

Por : Kathyria Caicedo

La carretera será una respuesta a las múltiples quejas de las malas condiciones en que está la carretera Boyd-Roosevelt. Foto/MOP

Hoy, será la apertura oficial al flujo vehicular de la Autopista Panamá-Colón. Así es, las cientos de personas que diariamente viajan a Colón podrán utilizar desde hoy esta nueva vía.

La carretera denominada “Don Alberto Motta Cardoze" estará habilitada desde horas de la tarde. Según informó, el Secretario de comunicación del Estado, Erick Rodríguez Auerbach, el recorrido oficial iniciará a las 3:30 p.m., no obstante aclaró que no se realizará ninguna ceremonia. A continuación sus declaraciones.

Ivanka Trump: Panama Hottest Market

2009-04-02T06:52:00.000-07:00

Ivanka Trump: Panama Hottest Market
2009-03-03
Latin Business Chronicle
BY JOACHIM BAMRUD

Ivanka Trump, executive vice president of development and acquisitions at U.S.-based Trump Organization, is bullish on Panama.

“I have projects all over the world [and] have a unique sense of the global real estate climate and submarkets,” she tells Latin Business Chronicle. “With great conviction, [I can say that] Panama is one of the strongest, if not the strongest, real estate market. Our biggest problem is not having enough inventory. We only have a small percent of the building left.”

ROBUST MARKET

The 70-story Trump Ocean Club is scheduled to open next year, offering a combination of condominiums, hotel, yacht club, restaurants, stores and a casino. “Given the global downturn, the fact that sales remain so robust a testament to the product, the brand and Panama,” Trump says. The buyers are a mix of American, Canadian and Latin Americans, she says.

The Trump success in Panama echoes the sentiments of other real estate experts. Property Frontiers recently named Panama as its top property hot spot for 2009, while David Berger, managing director for Latin America and the Caribbean for NAI Global, sees Panama as one two Latin American markets that will best weather the storm this year (the other being Brazil).

So what does Ivanka Trump see as the reasons for Panama’s success? “It’s got a great government that really supports developers,” she says. “I’m impressed with their forward thinking in bringing in new potential residents. I’m in New York and see as “escape to Panama”. I never saw that five years ago.”

TAX INCENTIVES

Panama also offers important tax incentives. “Some of the tax incentives are incredibly luring to international [investors], especially as we in America are being taxed to the hilt,” Trump says

Meanwhile, the $5.2 billion expansion of the Panama Canal is also generating strong growth, helping drive demand for real estate and other services.

And then there’s Panama’s combination of urban modernity and rural beauty. “Panama is an exceptionally diverse and beautiful country, with an urban and well-established

city in addition to gorgeous resort-type destinations,” she says.

The three-year old Punta Pacifica Hospital, affiliated with Johns Hopkins Medicine International, is also a big draw, Trump points out. It is located only a few minutes away from the Trump Ocean Club. And it doesn’t have the hurricanes of South Florida, while offering prices that are less expensive. “Panama is attracting [a] lot of baby boomers priced out of South Florida,” she says.

UNIQUE DESIGN

The Trump Ocean is being constructed in a market with plenty of luxury condominium offers, but Ivanka Trump believes it has been able to stand out thanks to its unique design and amenities, which include a private beach club at Isla Saboga in the Pearl Islands (of Survivor fame).

But the uniquely designed building is the main draw. “In terms of quality of construction it’s unlike anything Central America has seen,” she says. “It’s a beautiful building.” She especially singles out the pools and the large rooms and suites with all fixtures and amenities. “It’s a product that meets five star standard international levels,” Trump says.

And it will be managed by the Trump Organization. “We’ll be in Panama for many years after the building is ready,” she says.

Panama Hopes to Beat The Global Financial Crisis

2009-04-02T06:51:00.001-07:00

Panama Hopes to Beat The Global Financial Crisis
By Jeremy Schwartz - Inside Costa Rica

Cranes hover over the skyline like futuristic insects, buzzing around half-finished skyscrapers that make Panama City look like Miami or Hong Kong.

If any country is poised to withstand the ravages of the global financial crisis, it just might be tiny Panama, which has quietly become a regional economic powerhouse in the past five years.

Fueled by a superheated real estate market, windfalls from the Panama Canal and a burgeoning banking system, economic growth hit 9.2 percent in 2008 after soaring to 11.5 percent the year before.

As nations from the United States to Japan confront shrinking economies in 2009, officials in Panama are predicting relatively robust growth of 4 or 5 percent this year.

"This global crisis arrived in a moment in which we find ourselves stronger than we have been in the past," Minister of the Economy Hector Alexander said. "In Panama, the dominant topic isn't the recession."

While unemployment has soared in the United States, the unemployment rate in Panama fell from about 14 percent in 2004 to 6.5 percent last year. And as the U.S. is adjusting to life with 12-digit budget deficits, Alexander said Panama is hoping 2009 will be its third consecutive year with a budget surplus.

But the nation hasn't been immune to the global recession. Its real estate market might be heading for a sharp downturn.

Matt Landau, a New Jersey native and Panama City investment consultant, said real estate sales have declined precipitously in recent months, especially among the U.S. and European buyers who large ly fueled the boom.

"When I first got here (about four years ago), people were buying (properties) for $200,000 and then flipping them for double or more in six to 12 months," he said. "That was happening even up to a year and a half ago."

Now, Landau said, Panama City is bracing for a glut of high-priced condominiums.

And as global trade is pummeled by the recession, Panama Canal officials expect the number of cargo ships passing through the waterway — and the tolls they pay to the Panamanian government — to fall almost 6 percent this year.

Even there, Panama has an ace up its sleeve in the form of a $5.2 billion Panama Canal expansion, which will widen the canal's locks to allow larger ships to pass through.

Although recession wasn't on the minds of Panamanian voters when they approved the expansion in 2006, officials see the megaproject as a perfectly timed stimulus that will directly create nearly 7,000 jobs in a country of 3 million and spark the creation of thousands of secondary jobs, just as the economy begins to sag.

"It's as if we are increasing public sector spending by 35 to 40 percent," Alexander said. "Today it works as a fiscal stimulus."

Percentagewise, the canal expansion dwarfs any stimulus project the United States is planning. The project represents nearly a quarter of Panama's $23 billion gross domestic product. By comparison, the $787 billion stimulus package in the U.S. represents about 5 percent of America's $14 trillion gross domestic product.

Counternarcotics officials have long suspected that Panama's boom has also been aided by an influx of money from criminal organizations. According to the U.S. State Department's 2008 International Narcotics Control Strategy Report, the country's construction and offshore banking sectors are particularly susceptible to money laundering.

But Panama's economy has been helped by a stable and peaceful pol itical scene, which the nation has enjoyed since the 1989 ouster of dictator Manuel Noriega.

When Noriega was captured by U.S. troops, Panama's economy was in shambles, paralyzed by an economic embargo of Noriega's regime. Successive democratically elected administrations have focused on economic recovery, enacting reforms and privatizing sectors such as telecommunications and electricity.

But some critics say Panama's spectacular economic growth in the past five years has left out the majority of its people.

"The problem is that the growth has stayed in a few hands," said Rolando Gordon, a University of Panama economics professor. "The economic boom hasn't been able to resolve any of the great social problems of the country."

Gordon said government statistics obscure the fact that even as the country's economy exploded, the percentage of Panamanians laboring precariously in the nation's informal sector — doing things such as selling fruit at intersections — has risen from 33 percent in 2001 to 44 percent today.

Gordon added that public schools are underfinanced, and access to drinking water remains problematic for many Panamanians. At the same time, the price of basic foodstuffs has increased.

"This boom we're having is tremendous," taxi driver Jose Cano said. "But for the poor, the humble, we aren't seeing the boom. The price of food is going up. I have my own taxi, so I'm doing pretty well, but there are a lot of people who are recycling cans and stealing scrap metal."

Panama Secures $100M IDB Loan
The Panamanian government received a $100 million loan from the Inter-American Development Bank to finance priority programs, the IDB said Thursday in a statement. In return for the loan, the Panamanian government committed to reform its energy industry to make it more efficient and more competitive, the statement said.

The loan is the first of a series of three. Panama, a dollarized economy, enjoyed a fiscal surplus of 0.5% of gross domestic product in 2008, or nearly $98 million, and expects the same fiscal surplus of 0.5% of GDP this year. Its debt profile is also trending down, to 45% of GDP in 2008 from 54% of GDP in 2007.

Latest Blog Entries

* Tourist arrivals in Panama increased by 13.1%

Colon 2000 Home Port Inaugurated Last Month

2009-01-27T16:40:00.000-08:00

Colon 2000 Home Port Inaugurated Last Month

Colon 2000 is a new cruise ship terminal=2 0in Colon. It is a 10,000 square meter terminal that cost $15 million dollars to build. The port has capacity for over 2,500 passengers and 18,000 bags daily.
Royal Caribbean will use Colon 2000 as its home port, bringing throngs of tourists through the country in order to board the ships and begin their vacation. Analysts expect an increase in tourism in the country due to the exposure that Panama will receive. Other cruise lines that will use the port are Carnival Corporation, Celebrity, Cunard, Holland America, P & O, Princess, Radisson Seven Seas, Le Ponant and Regal Princess.
Royal Caribbean began offering cruises from Panama last year. Regional vice president Rama Rebbapragada said, “We are very excited to be the new home port today and are very excited to be back in Panama for a second season. Latin America has become a very important market for the company and being in Panama is part of our strategy to offer different cruise experiences to vacationers from all over the world.” Florida has traditionally been the point of embarkation for Caribbean cruises. But due to recent visa restrictions in the United States, many Latin Americans were frustrated with the difficulty they faced when attempting to take a cruise with a large group of family or friends. Panama’s strategic positioning and more flexible visas are taking advantage of this growing market. The 2,500 passengers who boarded the “Enchantment” for the inaugural cruise landed at Panama’s Tocumen International Airport. They were bussed to the Colon 2000 port where their week-long Caribbean cruise began. The trip will take them to Cartagena and Santa Marta in Colombia, Oranjestad in Aruba, Kralendijk in Bonaire and Willemstad in Curacao. On board, the tourists will enjoy Broadway-style shows and 24-hour room service. Royal Caribbean executives estimate that the “Enchantment of the Seas” will set sail 20 more times from Colon in this season. Sales have already passed 60% of the ship’s total for the trips.

Third Panama Canal Expansion Contract Awarded

The Panama Canal Authority (ACP) has awarded Costa Rica's Constructora MECO the third of four dry excavation contracts to help create an access channel linking the new Pacific locks with the Canal's existing Gaillard Cut (the narrowest stretch of the Panama Canal). Commenting on the contract award, the ACP's executive vice president of engineering and program management, J orge L. Quijano, said, "This pivotal step in the process to build the new lane represents just one more example of the Expansion Program's steady progress. Constructora MECO is a leading construction company in Latin America with expertise in the execution of infrastructure projects such as this one. The work will include excavation, removal and disposal of 8 million m3 of material, which will further reduce Paraíso (Paradise) Hill from 46 to 27.5 m above sea level. It also calls for the construction of about 2.5 km of access roads and the clearing of 190 ha of land containing munitions and explosives, remnants of US military training in Panama. Expansion will build a new lane of traffic along the Panama Canal through the construction of a new set of locks which will double capacity and allow more traffic and longer, wider ships.

Medical Tourism Takes Off
By Ursula Kiener Ford - Pana-Health

“Medical tourism” is a buzzword of lat e in Panama, but what exactly does it mean? Sometimes called “medical travel”, it is the globalization of health care. There are many reasons why people will travel to another country to receive medical treatment: cheaper costs abroad, innovative technology, shorter waiting periods, or better quality than one’s country of residence. Medical tourism has been the subject featured on the covers of magazines such as Time, Newsweek, US News. The consulting firms McKinsey and DeLoitte have also released positive reports on the growing trend. The cost of health insurance increased 91% in the United States between 2000 and 2007 (compared to a 24% increase in wages). Many people do not have health insurance and most Americans cannot afford medical procedures. And even when one does have insurance, not all procedures are approved for coverage, especially those which are considered “elective procedures” like plastic surgery or dental work. Add on the widespread recession and increasing deductibles and the result is the need to save money more than ever. But people cannot afford to cut back on health care, so the globalization of this industry is the perfect solution. Medical tourism is becoming more and more common, so much so that even insurance companies such as Companion Global Healthcare, Blue Cross Blue Shield, Aetna, and WellPoint are releasing plans allowing clients to travel overseas for medical expenses.
Panama is the perfect place to go. Doctors in Panama=2 0are trained abroad, many in the United States. Expat Sandey Stayanoff from the United States who has 33 years of nursing experience told me: “I have been very impressed with the level of medical care I have seen here and received here. I moved here preparing to be highly skeptical of what medical care I would find here. I have been pleased and more than once.” Now, she and many other expats encourage their family members to be treated in Panama because of the reduced costs and high quality of treatment. Hospitals in Panama have international affiliations. The most well known one is Hospital Punta Pacifica’s partnering with John Hopkins Medicine International. But other hospitals have affiliations to Baptist Health, The Cleveland Clinic, Tulane Health, Miami Children’s Hospital, among others. Panama provides people with less culture shock than other destinations because it has direct flights to most major cities in the USA and uses the dollar. The country has very modern infrastructure and 14% of the country speaks English. Being in the insurance industry, I noticed that most insurance plans do not cover preventative medicine and that most people do not actually do routine checkups, which results in complications later in life. Preventative medicine, including routine checkups, lab work, EKGs, is something which a tourist can take of advantage while they are in the country. People considering traveling for medical reasons should be aware that the main purpose of their visit is to get the procedure done, more than a vacation. Guidance in this process is essential; this is why medical tourism companies such as Panahealth Corp. exist. For those coming for invasive surgery, we offer full concierge service, including pickups to and from the airport, a companion to doctor appointments, hotel and tour booking, a cell phone, and personalized attention from one of our medical coordinators in Engl ish, at no cost to you.

Unemployment in Panama Down to 5.6% in 2008

Unemployment in Panama dropped to 5.6% in 2008 according to the Ministry of Labor, and they estimate that in 2009 the Panamanian economy will maintain the conditions necessary to continue to generate new jobs. "One should not fear an apocalyptic scenario because there are conditions to generate dignified and decent jobs," said Labor Minister Benjamin Salamín today, Wednesday, making reference to the international financial crisis. Salamín said unemployment in Panama was at 14% in 2004 and that it has been continuously lowering. "2008 closed with an unemployment level of 5.6% which is very positive - it means approximately 215,218 new jobs have been created in the country," he said.
The economic activities that have contributed more to the creation of new jobs are commerce, construction, and tourism among others. The government has said sustained growth of the economy based on public and private investment has allowed Panama's poor access to new jobs.
Experience Carnival in Panama
Since the early 1900s Carnival has been celebrated in Panama four days prior to Ash Wednesday. During this extensive celebration, all the regular activities in Panama come to a stop and the streets are suddenly overflowing with confetti, costumes, masts, parades and floats. Carnival celebrations are held throughout Panama, but the largest are in Las Tablas and Panama City. Las Tablas is situated approximately 130 miles to the west of Panama City. You will find the folkloric atmosphere in Las Tablas to be the ideal place to celebrate Carnival, with its unique blend of creative costumes and colorful floats and a fun filled rivalry among locals as they compete with one another to come up with the most original designs. In Panama City, the celebration kicks off with the crowning of the Carnival Queen and her court. This is definitely a Carnival event not to be missed. Throughout the entire festival there are also a number of other events scheduled, including numerous dancing and eating events that are hosted by various hotels throughout the city. On the first day of the festival you will get a small taste of what is to come. A friendly atmosphere full of people intent on socializing and having fun descends upon the city. The party atmosphere continues on throughout the night and over into the next day when the pollera parade is held. During this event literally thousands of girls and women don the country’s colorful national dress as they participate in a large parade. Perhaps the biggest day of the event takes place on Shrove Tuesday. This day is marked with some of the brightest and best floats and a city-wide party that continues well into the wee hours of the next day.
The 2009 Carnivals will be celebrated from February 21 to February 24.

2008-12-11T02:42:00.001-08:00

Panama: Boom or Bust?
www.nuwireinvestor.com: Monday, November 10, 2008
by Michael Manville,

Author of the Panama 101 - E-Book Guide to Living and Investing in Panama.

While most of the world faces downward-sliding real estate markets and a global credit crunch, it is easy to assume that Panama's real estate market will follow. On the other hand, perhaps a speculative real estate boom has coincided with a variety of real geopolitical events that enhance the intrinsic value of Panama's real estate market in the wake of new trends related to globalization.

Boom potential
Panama has been posed to grow exponentially in terms of tourism and real estate, particularly with baby boomers and other retirees and expatriates looking for affordable alternatives to well-established markets such as the Caribbean, Mexico and Costa Rica.

Over the last several years, Panama has emerged as one of the hottest international destinations for tourism, real estate and business investment. Panama City hotels have doubled their rates and still there is almost no vacancy. Million- and billion-dollar projects are scheduled throughout the country, and real estate agencies have sprouted up on every corner.

Panama has emerge d an international market within even the last five yearsCondo prices have doubled and in some cases tripled and land prices in some areas have appreciated 10 times or more. Taxes have increased.

In the eyes of much of the world, Panama City is not the same city it was even just five years ago. Panama has entered the world stage in terms of business activity and is rivaling Miami as a regional hub for Latin American business and finance. It is also just 2.5 hours from Miami and there are direct flights available to almost every capital city in Latin America.

Some of the factors pushing jobs to places such as China and India have also pushed companies to set up regional headquarters in Panama, pushing Panama's GDP growth to the highest in Latin America during 2007. Extreme growth in the global economy increased traffic at the Panama's Canal more than ever, and the Colon Free Trade Zone has continued to flourish in the wake of increased activity from China, India, Brazil and other rapidly expanding economies.

Panama City speculators
For those who believe in an impending crash, there is no doubt that much of the investment in Panama was based on speculation. That is, many buyers purchased property simply to re-sell at a higher price later, with no intention of using their condo or no plans to build on their land.

Most speculative invest ments in Panama occurred in the Panama City condo market. International investors could fly in and buy multiple units with 10 percent down and no credit check of any kind. In some cases, buyers wired money based on a picture and a price list without ever visiting Panama.

The U.S., Canada and most other advanced economies were still undergoing an unprecedented real estate boom at the start of Panama City's real estate frenzy back in 2005 and 2006. Many North Americans withdrew freshly-discovered equity out of their homes to put deposits down on Panama condos.

Billed by some as the number one retirement destination, the media picked up on Panama and North Americans flocked there. Towers sprouted up and developers threw up renderings of new projects faster than you can say "overbuilt." In some cases, prices doubled before any construction began.

Many people have forgotten the details of the last real estate crash in the U.S., back in the early 1980s when interest rates rose to double digits. The burst of the housing bubble in the U.S. has trickled down to Panama, as there is no denying that the Panama real estate rush has slowed, but this does not necessarily mean prices will crash as they have in other markets.

Florida's flop and the Latino effect
Traditionally, Miami and South Florida were the hub for Latinos for stable banking, investment, sho pping and lifestyle opportunities. After Sept. 11, Miami began losing its luster as a place for wealthy Latin Americans to park their money and/or start businesses. U.S. visa laws inhibited the ease of travel for many Latinos and real estate prices in South Florida rocketed to astronomical levels. And after a few treacherous hurricanes were accompanied by exorbitant increases in property taxes and insurance premiums, South Florida had become far less favorable for many Latin American investors.

As the South Florida real estate market began its rapid decline, Latino investors looked to Panama for rising investment opportunities. These same factors also drove a lot of non-Latino Americans to look at Panama for investment instead of Florida or the Caribbean, a more traditional location for retirement in the tropics.

Hugo Chavez's socialist policies drove many Venezuelan buyers to escape to Panama with their families, their money and their business ideas. Panama's stable banking system made for an ideal alternative for Venezuelans to get as much money out of Venezuela as possible. Although most Venezuelans do not get along with their Colombian neighbors, and vice versa, Panama is seen as a neutral place for both parties.

Colombians have always affected Panama City real estate, which is an ideal place to launder money. Why store money in a bank when you can store it in a condo tower? Ecuadorians, Brazilians, Argenti neans and many other Latin American nationalities played a role in Panama's growth, particularly in Panama City.

Dollar decline good for Panama
As the U.S. dollar declined sharply against the Euro, Panama's real estate prices began to look attractive to Europeans. With real estate opportunities evaporating in Spain, large-scale Spanish developers wielding Euros stepped in and pushed demand for Panama real estate much higher.

City planning in Panama is gradually becoming more refinedSeveral large-scale projects in Panama are being developed by well capitalized Spanish developers with the marketing muscle and contacts to promote their projects to buyers from Spain. New direct flights from Amsterdam will make Panama even more accessible to major sources of second-home buyers in the United Kingdom and elsewhere in Europe.

Related to the decline in the U.S. dollar is the appearance of inflation in Panama, particularly building costs. The fact that building costs have increased 40 to 60 percent over the past three years (some materials have increased that much in just a few months) and that land costs have risen at least that much, this raises the floor for Panama City real estate because builders cannot build at the old prices and still make a profit.

City planning, although chaotic and hardly controlled, is starting to tighten, thus raising development costs. Rental rates20in Panama City are still high relative to purchase price and rental availability is low, offering some support to price levels. Compared to almost any major city in the world, real estate per square foot in Panama City is still cheap.

Potential correction
There may be a correction for Panama City real estate in the next couple of years in which some speculators will be forced to sell at less of a gain than they expected. Purchasers buying at today's pre-construction prices may even experience a loss if they try to sell in the next two years (that is how long it will take for many of the buildings under construction now to be completed, and that is when the developers will discover who is actually able to pay the balance due for their condo and who cannot).

With bank financing tightening around the world, Panama's banks will not be dishing out loose loans to foreigners with weak credit based on super-high sale prices as they once did. Some speculators are bound to get caught with their pants down. Those with a longer term outlook—say, five to 10 years—will probably find that their Panama property has appreciated nicely.

Panama won't bust as bad as the U.S.
In Panama, most foreign buyers were not in need of the 0-percent-down mortgages, cash back incentives or 3 percent interest rates that were integral to the U.S. housing bubble. Loans where the monthly payment does not cover the interest (and the unpaid interest is then added to the principal) do not exist in Panama as they did in over-leveraged markets. Most foreign buyers of condos in Panama put down at least 30 percent cash, and in the case of land, they often have no financing at all.

Of course, many U.S. buyers refinanced their properties at home in order to free up cash for their properties in Panama, but for the most part, buyers in Panama would not be considered sub-prime borrowers. Typical American sub-prime borrowers do not drop $50,000 cash into a project such as the Trump Ocean Club or any other distant real estate investments requiring large cash deposits. Most buyers plunking down deposits on Panama property are working with risk capital and are not entirely dependent on easy credit.

Infrastructure
A much bigger threat to Panama City real estate will be the strain placed on water systems, demand for electricity, traffic congestion, parking issues and other infrastructure that was not designed to handle a large and swift increase in growth.

Lack of infrastructure could be the downfal of Panama City's real estate marketOne would expect city planners to be on top of calculating the future needs of the city's infrastructure, but in reality planning was never one of the Panamanian government's big strengths. Usually, something must break in Panama before anyone bothers to fix it.

With an election looming in 2009, many costly infrastructure improvements may be shelved and left for the next administration anyway. Without proper planning by Panama's authorities, all those people who flocked to Panama will desert it and run back to where they came from.

Where to buy now
There are still areas of Panama that have not been overly speculated and may still be considered bargains relative to parts of Costa Rica or Mexico. These locations are where retirees and snowbirds would enjoy living and where highrise towers are not springing up by the dozens, areas that offer a quiet, peaceful existence and a growing expatriate community in which to live. With the retirement wave still in its infancy, locations that deliver from a lifestyle point of view are still good places to invest.

Far from fully exploited, underdeveloped resort areas including Pedasi, the Chiriqui coast, Coronado-Farallon and the Caribbean near Portobelo will continue to increase in value as those areas develop. Raw land in these areas should continue to appreciate over the mid- to long-term as tourism and retirement infrastructure develops.

Real estate prices in more established destinations such as Boquete, Sora and Bocas Del Toro will probably plateau in the near- to mid-term. Of course, much will depend on the government's new master plan for tourism development. Any=2 0time the government steps in to regulate things, both problems and new opportunities inevitably pop up.

Farm land and agriculture
Agriculture, water and other commodities could be the star investment performers in Panama for at least another five years and probably more. Farm land prices will continue to rise as demand increases and supply stagnates. Interestingly, farmland prices throughout Panama have increased by at least the same percentage as a Panama City condo in terms of price per square foot. Persistent food shortages in Asia will put more pressure on food prices worldwide and therefore land that grows food will increase in value.

Farm land in Panama is relatively fertile and productive, with an abundance of water, and will likely appreciate alongside the commodities that it produces. Future U.S. dollar weakness may fuel this fire. Teak is happens to grow well in Panama and is a good commodity investment for many. Local builders are already using locally grown teak for construction in their housing and resort projects.

Conclusion
While Panama is not the bargain it used to be, remarkable changes have taken place to help shelter Panama from any dramatic form of real estate crash. The most exposed investors are those who speculated on more pre-construction condos than they could afford; the more recently they engaged in this investment, the more difficulty they will have finding a buy er to save them from losing their deposit money.

Panama's coastal areas and cool highlands are still much cheaper than those in Costa Rica or Mexico and are likely to continue to increase in value as baby boomers retire. Over the next couple of years, Panama's government will play an important role in the rise or decline of Panama, depending on how well policies and planning are implemented to balance its economic and infrastructure development.

Regardless of the outcome, Panama's lifestyle advantages will still attract many newcomers from all over the world contributing to its diversity and cultural evolution.

2008-12-10T03:35:00.001-08:00

Everyday hundreds of american retirees are finding Panama to be a real value. Beautiful beaches, great weather, and great people.

As seen on ABC NEWS

Panama Economy Stays Strong - Bucking World Trends

2008-12-10T03:29:00.000-08:00

Panama Economy Stays Strong - Bucking World Trends

Date: 2008-10-29

Panama's economy will continue to grow, say analysts, resisting the global downturn led by US economic woes.
"The strong economic performance of the last few years continues, despite the deteriorating global environment," said International Monetary Fund (IMF) officials last week in a public statement.

"Panama was one of the fastest growing economies in the world in 2007 with real growth rising to 11.2 percent, following an average growth rate of nearly 8 percent in 2004-06 ... Growth in 2008-09 is projected to slow somewhat, to about 8 percent, with the Canal expansion and related investment activities partially offsetting the effects of higher oil prices and the slowdown in the U.S. and the global economy."

The IMF has also upped predictions for Panama's economic growth to 8.3 per cent for this year, up from a more modest estimate of 7.7 per cent in April's World Economic Outlook report.

"Despite a deteriorating external environment, economic prospects are favorable," concluded IMF board directors, "thanks to the Canal expansion project and associated investment, as well as improvements in competitiveness reflected in expanding export services such as tourism, communications, and transportation."
IMF directors commented that Panama's financial sector has not been negatively affected by the global financial turmoil, noting the 'remarkable turnaround' in the non-financial public sector as well; these factors, combined with the strong economic growth, contributed to Panama's improved credit rating from Standard and Poors earlier this year, earning the country a BB+ (stable).

Analysts at Deloitte Touche Tohmatsu, a global auditor, also estimate an increase of 8.5 to 9 per cent growth for Panama in 2008, in their Economic Perspectives 2008 report, "marking the sixth consecutive year of strong growth".

According to the latest report by Indesa, a Panamanian advisory and financial services firm, the economy is expected to grow 8.4 per cent in 2008 and nearly 10 per cent in 2009, putting Panama at the forefront of economic growth in Latin America , along with Uruguay and Peru, which posted first quarter growth results of 11 and 9.2 per cent respectively.

Panama's 2007 gross domestic product (GDP) topped $19.7 billion in 2007, and is projected to surpass $24 billion this year.
The driving sectors in Panama are construction, mining, financial services, transport and telecomnunications, and hospitality. Last year, both construction and mining grew by 19.6 per cent apiece according to Indesa, offsetting smaller gains in the manufacturing and agricultural sectors.
In fact, it is Panama's service-based economy that has allowed it to weather rising oil prices, as well as its proximity to the US, where economic uncertainty has travelers opting for nearby leisure destinations. Panama is emerging as a significant business and tourism destination in the region for travelers from both North and South America, with the Tocumen airport acting as a regional hub between the continent's major cities.
In a report issued by the Panamanian government, authorities estimate the tertiary or service sector accounted for nearly three-quarters of the country's GDP in 2006.
"In the past three years (2004, 2005, and 2006), the tertiary sector has developed significantly, with growth rates of 6.8 per cent, 9.4 per cent, and 9.3 per cent," indicated the Panama Trade Policy Review to the World Trade Organization. "Mention should be made of the Colon Free Zone and of the hotel and restaurant subsector, which grew by more than 10 per cent. Other components of the sector also trended upwards significantly, such as financial intermediation, wholesale and retail commerce, and real estate.

"The high percentage of GDP that this sector represents and has represented in the past, shows that Panama is a service-oriented economy. In 2006 the sector accounted for 74 per cent of GDP."

The external sector has also been a strong economic driver, with the export of goods averaging five per cent annual growth between 1997 and 2006, reaching more than $1 billion USD. By 2006, the net export of goods and services represented one third of Panama GDP.
Despite the fact this year's numbers are down from 2007, which saw record growth levels of about 11 per cent, the overall positive trend is in stark contrast to regional predictions. The Economist estimates the mid-term trend for Latin America to average out at 3.9 per cent in 2012, while the IMF predicts a much better performance for Panama.

"The medium-term outlook is promising, supported by the canal expansion and other large construction projects," noted the IMF's board of directors last year in a public statement. "For 2007-10, staff projects average annual real GDP growth of about 6.5 per cent, [and] inflation of 2.25 -2.75 per cent."
IMF officials commended Panamanian authorities on governmental spending 'restraint' and improved tax collection in reducing public debt and creating a sound basis for economic growth. Declining unemployment, plummeting from 13.6 per cent in 2003 to 7.3 in 2007, was also cited, as was the positive impact of the Panama Canal expansion, expected to be completed in 2013 at a cost of some $5.5 billion.

"The project is expected to boost GDP growth and job creation, both directly and by stimulating related industries," noted IMF officials.
The Latin Business Chronicle has also placed Panama at the top of its Latin Business Index, thanks to $1.8 billion in direct foreign investment (DFI) in 2007. Panama beat out Chile, which saw more than $14 billion in DFI in 2007, taking the top spot for the higher proportion of investment to its GDP.
Inflation, which has typically been very low for Panama thanks to a currency pegged to the US dollar, has risen in step with the recent devaluation of the US dollar. While 2007 saw an increase over the previous year, going from 2.5 per cent to 4.2 cent, Panama's inflation remained well below all other Latin American countries, which averaged 7.75 per cent. However, inflation reached nearly nine per cent in May of 2008, which the IMF largely attributes to rising food and fuel costs