Panama is a small country consisting of an area equal to almost half the size of the state of Florida. Its population is the smallest of all Spanish-speaking Latin American countries at just over 3.3 million, but despite its small size and population, the progression and positioning of this tiny isthmus nation in the last decade has been undeniable.
Panama's transformation started at the turn of the century with one of the largest real estate deals of recent history, namely the turn over of The Panama Canal and Canal Zone from US control to the stewardship of the Panamanians which was concluded in December of 1999.
The Canal Zone is generally considered to include 5 miles on either side of the famous ditch which cuts Panama in half, excluding the Cities of Panama and Colon. This real estate transaction totaled nearly 1500 km2 and included over a dozen military bases, more than 20 townships and the Panama Canal itself along with all the associated infrastructure in the form of hospitals, airports, a golf course, banks, bowling allies, office buildings, commissaries, tens of thousands of residential properties and everything in between. The value of said assets climbed easily into billions of dollars and provided an impressive platform from which Panama has been able to successfully position its launch.
For those of you that have been following the progression of Panama, you are likely already familiar with the largest of the developments currently underway: the expansion of the Panama Canal.
The Canal Expansion broke ground September 3rd of 2007 and nearly 3 years later is ahead of schedule and under its allotted 5.25 billion dollar budget. The Panama Canal Authority (ACP) estimates that during the next 20 years, cargo volume transiting the Canal will grow at an average of three percent per year, doubling 2005's tonnage by the year 2025. As such, providing the Canal with the capacity to transit larger vessels will make it more efficient by allowing the transit of higher cargo volumes with relatively fewer transits and less water usage. Along the way, between 35,000 to 40,000 new jobs will have been created and the legacy of the Panama Canal will be protected as a relevant and important shipping route for decades to come.
Another impressive though less touted development currently underway is that of Panama Pacifico. Panama Pacifico is a demographic changing project in terms of total area and size of investment, second only to the Panama Canal Expansion. It is situated on the former Howard Air force Base which became a special economic area, with the passage of Law 41 in 2004, Panama created Panama Pacifico as a special economic zone (or ‘free zone’). Special benefits are granted to all companies relocating to the area including legal, customs, immigration and labor benefits, as well as specific fiscal incentives. For some business activities, this means freedom from fiscal taxes in Panama.
In the creation of Panama Pacifico, the Panamanian government realized the opportunity to bring direct foreign investment into the country, and to create new jobs for Panamanians. For these reasons, the government and the Panamanian people welcome the development as a source of new commerce and economic generation.
Panama Pacifico’s size is impressive. At completion, this business center will encompass:
- 1,400 hectares, with nearly half of the land to remain in its natural state or to be devoted to new parks and open space
- 1 million square meters of commercial space
- 20,000 homes
- 40,000 new jobs
- Retail centers and hotels
- Schools
- Places of worship
- Parks and recreational amenities
- A championship golf course (Greg Norman Design)
The first phase of the International Business Park has already been completed and has offices available for occupancy. To date, such corporations as Dell, Caterpillar and 3M are either established or in the process of establishing offices in Panama Pacifico.
Infrastructure forms a major part of Panama's progression, and among the thousands of kilometers of new and improved roads is the Cinta Costera, or Coastal Belt. The Coastal Belt consists of 35 HA of fill, which was made into a by-pass for the main artery of Avenida Balboa which receives an average of 72,000 cars per day. The construction of the cinta costera cost 189 million USD and from start to finish took only 540 days to complete. The Coastal Belt has resulted in a great alleviation of traffic in Panama's city center, as well as 210,000 m2 of public parks, 7km of sidewalks, 2000 sorely needed parking spaces, and 6 handicap accessible elevated street crossings for pedestrians.
- Panama Realtor's Location Picks for 2012
- Tourism up 6.3% in the first five months of 2010
- Panama's economy grew 4.9% in the first quarter of 2010
- Panama ranked as the third happiest country in America
- Insurance for tourists
- Moody's upgrades Panama to investment grade
- A Report On The Current Condition Of The Panama Economy
- The Panama Canal Expansion
- Census 2010
- Panama's economy grew 2.4% despite global economic turmoil
