Panama`s economy has always been hallmarked by foreign investors. This began with the US construction of the Panama Canal in 1903 and continued over the years through infrastructure funding, capital deposits and real estate investments from the USA, Canada and South America. Europeans have only recently begun to arrive, and that in small numbers. In the past, investors from China and the Arab world were hardly represented at all. That is presently changing as China has now discovered Panama. Investments in their billions and Chinese companies and investors alike are now on the way. Here you can read more about the ongoing changes that Chinese interest brings.

Chinese groups were already involved in some Panama infrastructure projects during the last few years. Yet new developments between both nations are of a more significant and extensive size, and will have massive effects on Panama`s economy. The Chinese telecommunications giant Huawei and the world`s largest building firm China Construction both opened head offices for Middle and South America in Panama at the end of 2015. Chinese companies have currently approved projects to the tune of 2 billion US dollars. This is immense for a small country like Panama. Chinese businesses will establish a new container port on the Canal (900 million USD), a thermoelectric power station (also 900 million) and the most state-of-the-art conference centre in Middle America (200 million).

Yet the biggest bombshell came just two weeks ago. Panama took up diplomatic relations with China and simultaneously ended them with Taiwan. China is a more significant economic partner for Panama. It represents the largest trading partner in Panama`s free trade zone (number two in the world after Hong Kong) and the country which uses the Canal the second most.

Where does Chinese interest in Panama come from?
In Latin America, China has made plans for trade deals worth 500 billion and direct investments worth 250 billion over a 5 year period (2015-2019). It would accordingly like to use Panama as a trade and logistics centre. In the meantime, China is financing more infrastructure investments in Latin America than the World Bank. So too, since Panama`s currency is the US dollar, China`s requirement for dollar investments is satisfied.

Such a development between the two countries is not only positive for Panama`s economy (GDP growth since 2002: 8.5% per annum), it will also influence real estate prices. Workers and employees will come to Panama thanks to the big companies and new projects. Furthermore, Chinese investors will be in a position to see that there are not many places in the world offering best-located apartments on the Pacific promenade for 2500 USD per square metre and a 7% rental yield per year. And all that in a democratic, emerging country with the US dollar as its currency.

FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. He offers advice on all aspects of living in Panama.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

The Washington Times reports on the reasons for Panama`s enormous growth (8.5% per year since 2002).

You can find the report here:hier: Washington Times-Bericht.

This question is just as difficult to answer as the one relating to the influence of his politics on the entire world…

I would, however, like to provide you with some interesting information:

• Donald Trump has his roots in the real estate sector and opened his first hotel outside of the USA in Panama in 2011. He was present at the opening ceremony and was especially taken with Panama itself.
• As President of the USA he is now trying to strengthen the economy at home, specifically the US oil and energy markets in the field of liquid natural gas. That means positive news for Panama, as the recently extended Panama Canal can now for the first time handle the huge tankers necessary for this business. For the US energy companies it brings a time and cost saving of over 30% on the way to their biggest customers in Asia. For Panama it brings a further source of income. On the following link you can find a very informative Bloomberg report (simply click).
• President Trump would like to economically burden those nations with whom the US has a trade deficit. The USA has, in fact, a trading surplus with Panama, so the country is not on the radar here.
• When it was announced that Donald Trump would be the USA`s next President, the website of the citizenship office in Canada crashed. We have noticed something similar in Panama. Institutions which help foreigners to settle in Panama have undergone a wave of demand from the US. This serves to bring affluent people to Panama who wish to live in the country and can do the economy some good.
• Can there also be a negative influence on Panama through the new President? Yes, of course. At the moment the matter remains open, as it does all over the world.

FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. He offers advice on all aspects of living in Panama.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

At the beginning of 2017 Panama`s government approved a 100 million US dollar contract with the American firm Del Monte concerning banana production.

This will create thousands of new jobs and further economic growth in the already flourishing region of our Boca Brava island project.

Good news, of course, for our plans.

The Oxford Business Group reports on Panama`s economic situation 2016/2017.

Click here for the report