On 05 May 2019 the presidential elections took place in Panama. The new president of Panama is Laurentino “Nito” Cortizo (66), candidate of the center-left-oriented party “Partido Revolucionario Democrático” (PRD). The former Minister of Agriculture and businessman was the favorite. Panama is a democratic country where elections are held every five years. These elections have a big influence on the start of new major projects in Panama and are therefore very important for international companies that are interested in doing business in Panama. 

Laurentino Cortizo has set himself the goal of fighting corruption in the country, improving the public education system and giving new dynamism to the economy. Panama’s economy has been one of the fastest growing in the world since the early 2000s, but last year it grew by only about 4% below the average of previous years. With new investment programs, the president will focus on further boosting economic growth. The fact that one of the largest copper mines in the world went into operation in Panama at the beginning of the year will also help. According to the IMF, Panama’s economy will grow by about 6% p.a. in the coming years. It will also remain interesting to see who will win the new major projects, especially on the Panama Canal, under the new government. These were often Chinese companies under the last government after Panama and China established diplomatic relations and chose Panama as the country in Latin America for their silk road policy. Here, of course, the US and Europe will also try to get more access again.

In summarizing, we can say that the business-friendly politics and focus of Panama will not change after the elections.

We would like to briefly describe the characteristics of the electoral system in Panama and its effects.

In the Panamanian elections, a new president and the governing parties are elected. The major political parties in Panama are called “Panameñista”, “Cambio Democratico” (CD) and “Partido Revolucionario Democrático” (PRD). The political direction of the three major parties is basically similar, namely “democratic-center“. Left-wing parties have no great significance, since they have learned to appreciate free market economy by living closely with Americans for a hundred years and do not want to follow the mistakes of many South American left-wing countries.

Panama’s law stipulates that presidents may only be re-elected after a break of 10 years. Their parties can again be re-elected. Panamanian presidents often come from economically influential families who run large companies in Panama.

In this context, we are currently in an interesting and good phase for entrepreneurs who are interested in Panama as a business location. Over the next few months, the focus will be on looking for lucrative projects in Panama and finding local joint venture partners.

Klaus Happ advises and supports international companies that want to become entrepreneurs in Panama. Based on his experience and contacts, he finds partners and interesting business opportunities for companies.
Information on the business consulting Panama

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

In January the World Youth Day with the Pope took place in Panama. 300,000 visitors celebrated the Christian festival with the Catholic population. Panama invested about 50 million USD in the organization of the event. Economists expect a positive impact of an additional 1.5% GDP growth for 2019 through direct revenues and the international awareness of the country, which among other things supports tourism.

This should also have a positive effect on the real estate market in Panama, so that investments in real estate in Panama are still very interesting. The real estate prices in Panama are cheap in international comparison, because in best location the real estate prices in Panama City are about 2,500 USD / sqm and the rents about 15 USD / sqm.

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

China’s President Jinping visited Panama in December to discuss economic agreements with the government. China has chosen Panama as the country in Latin America to continue its policy of the Silk Road. Panama’s geographical location makes it an ideal partner for a free trade agreement, investments in infrastructure and tourism. Further information on the infrastructure projects (Link).Infrastructure projects are good for the economy, create jobs, improve the quality of life and are important elements for the attractiveness of the investment location and the real estate in Panama.

Infrastructure projects are good for the economy, create jobs, improve the quality of life and are important elements for the attractiveness of real estate market in Panama.

With the establishment of diplomatic relations between Panama and China in 2017, Chinese real estate investors will now also receive a visa for Panama for the first time and will find attractive real estate prices in Panama. In prime locations, property prices in Panama City are approx. 2,500 USD / sqm and rents are approx. 15 USD / sqm.

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 largest new copper deposit in the world was found in Panama and the copper mine will go into operation in 2019. This will have a positive impact on the real estate market in Panama. Panama’s economy is dominated by the service sector, which accounts for about 77% of the economy. Now the raw materials sector has been added as an important new component, giving the booming economy further momentum and diversifying it.

After the largest new copper deposit in the world was found in Panama years ago, the copper mine will go into partial operation in 2019 and be fully operational in the following year. The mine is a $6.5 billion project managed by Minera Panama, a subsidiary of First Quantum Minerals Ltd, Canada. The mine is located 120km west of Panama City in a lonely area on the Caribbean side of Panama where 11,000 (7,500 Panameños) people are currently employed. Once fully operational, the mine will, according to experts, be one of the largest copper mines in the world and one of Panama’s largest export sources. As a result, the mining business will be Panama’s fastest-growing industry, representing approximately 5% of Panama’s GDP. The homepage of Minera Panama and its presentation give a deeper insight into this megaproject.

The copper mine will have a positive influence on many economic sectors (infrastructure, trade, construction, etc.). The real estate market in Panama will also benefit from this, as this new economic activity will bring new manpower and demand for housing. Many of the copper mine employees live and rent their homes in Panama in the nearby beach area of Coronado. This is located on the Pacific side (i.e. on the other side of the narrow country) and is about an hour’s drive from Panama City. Investors of us buy profitable and beautiful beach apartments in Coronado (Link) and generate rental income from short and long term rentals.

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

Panama’s economy has always benefited from major infrastructure investments. In 2019, the airport terminal 2, metro line 2, the third bridge over the Panama Canal, the new cruise port and the congress centre will be completed. And a new giant project is just about to start construction.
Photo © Autoridad del Canal de Panamá (ACP)

At the beginning of 2019, several major infrastructure projects will be completed in Panama.

• After the inauguration of the first metro line in Central America in Panama City in 2014,
  Metro Line 2 is now close to completion. This will expand the public transport network and hopefully reduce the city’s major traffic problem a little.
• The modern Terminal 2 of the international airport in Panama City should be opened in the first quarter of 2019. The airport is currently working well beyond its capacity limits and urgently needs the new terminal. With over 80 direct connections, Panama flies directly to far more destinations than any other airport in Central and South America.
• After a construction period of five years, the third bridge over the Panama Canal will be completed at the beginning of 2019. This bridge was built on the side of the Atlantic Ocean and is part of a major infrastructure plan by the government to develop the Caribbean side of Panama (85% of life in Panama is on the Pacific side).

• The cruise terminal in Panama City on the Pacific coast will be completed by mid-2019. Until now, cruise ships could only dock on the Caribbean side of Panama (city of Colon). Now thousands of cruise tourists will be able to arrive or depart directly from Panama City. This will promote tourism in Panama, which is still in its very early stages, and increase the low hotel occupancy rate in the city.
• With the visit of the Pope and the World Youth Day in Panama at the beginning of 2019, the new congress centre, which will be the largest in Central America, will also be opened. The project with construction costs of approx. 200 million USD will bring more trade fairs, companies and tourists to Panama.

Construction of the fourth bridge over the Panama Canal will start in 2019. This bridge will be built in Panama City and will completely change the traffic situation of the city. In addition to cars and pedestrians, this bridge will also bring the new Metro Line 3 across the Panama Canal, connecting the hundreds of thousands of inhabitants of the suburbs with Panama City. This billion USD project is divided into the construction of the bridge (Chinese consortium), the metro line and the purchase of the metro trains (Hitachi). Completion is scheduled for 2022.

The infrastructure projects mentioned are good for the economy, create jobs, improve the quality of life and are important elements for the attractiveness of the investment location and the real estate in Panama.

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 Panama Canal closed the 2018 fiscal year with a historic tonnage record, an increase of 9.5% over the previous year. This significantly exceeded the original forecasts for 2018. The revenues from the Panama Canal and the national currency, the USD, make the big difference between Panama and most other emerging market countries in terms of a country’s economic stability.

The expansion of the Panama Canal, which was completed in 2016, is paying off. The increase was driven in particular by liquid gas tankers (LNG & LPG), container ships, chemical tankers and vehicle transporters. LNG tankers could hardly use the original Panama Canal due to the draught of the ships. The following overview shows the sub-segments in the time before the extension of the canal (Panamax) and currently (Neopanamax).

62.8 percent of the cargo that crosses the canal comes from the United States or is destined for the United States. The main countries using the interoceanic route were: United States, China, Mexico, Chile and Japan. Panama is benefiting from economic growth in the USA. At the same time, however, Panama would also suffer from an intensified trade war between the USA and China.

The income from the Panama Canal is between USD 2 – 2.5 billion annually, which is a stable and high income for a small country like Panama with 4 million inhabitants. The country’s national debt, measured as a percentage of GDP, is around 39%, partly because of the revenues from the Panama Canal. This is low by international standards (EU 81%, USA 108%, Japan 235%).

The booming Panama Canal is an important component of the economy and promotes prosperity and the growing infrastructure in the country. These are important elements for the attractiveness of the investment location and the real estate in Panama.

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