The GDP for Panama has grown 6% in 2005, 8.7% in 2006, 11.2% in 2007, and 8.5% in 2008. The expected GDP growth for 2009 is 3-4%, the highest in the Latin American region. Foreign Direct Investment (“FDI”) has increased rapidly, including the US$5.25 billion expansion of the Panama Canal.
This sustained growth in GDP has increased consumption and stimulated housing markets. HSBC, Citigroup, and other banks have invested in Panama with anticipated growth in the mortgage lending and credit card business. Middle class mortgage borrowers who become property owners will reinforce the cycle of economic development. Foreign retirees will all need goods and services provided in a convenient and familiar fashion. The economy will continue to benefit from increased tourist traffic and expenditures, foreign buyers purchasing and furnishing second homes, and expanded Free Trade Agreements with the US and Canada. Other mining, refining, shipping, and government projects bring substantial investments, increased employment, and economic growth.
