Panama Investor Blog

Panama's Balboa Port ready for a US$110 Million Expansion

The Panama Balboa Port is home to the PPC (Panama Ports Company), which is part of a huge conglomerate named Hutchinson Whampoa, based out of Hong-Kong. This company is ready for a great investment in expansion and renewal of its port and equipment said to take place in 2015, with a budget of $110,000,000.00 Dollars.

Aitor Ibarreche, Hutchison Whampoa's CEO made this announcement and said the investment will boost its capacity by 11%  up to 5M TEU ( twenty-foot equivalent unit) by adding loading and unloading spaces. Also the Pacific Port's crane zone with now be wired and using electricity instead of burning fuel, a great plus for saving on the long run.

There is no doubt that this investment and expansion is designed so that the port can be ready for the new locks of the Canal expansion. This project is said to be delivered by early 2016, and so will this expansion. Since the Balboa Port is #45 largest in the world, also Panama's 2nd largest one, it makes sense to improve and justify such an investment. 

"Direct Foreign Investment" Sustains Economic Growth in Panama

How can the Gross Domestic Product (GDP) grow 6.2% in a country where construction workers paralyzed most of the ongoing projects, including the expansion of the Panama Canal; a nation where the crisis endures in the Colon Free Zone (CFZ), due to a great debt of Venezuela to companies operating in the Free Zone, totaling USD 1,7 Billion; and where hotel occupancy is at its lowest point (67% in 2010 and 53% in June 2014)?

How can Panama be the country with the highest economic growth in Latin America and the Caribbean, if in the first half of this year - exports of goods in the nation grew only 0.1%, agricultural production continued to deteriorate, had to take cost-saving measures energy, falling production of hydraulic and thermal energy; and transit of vessels through the canal declined in the first six months of the year?

How is it that Panama's economy grows 6.2%? The government has just approved a cut in public spending of about $ 500 million, based between their technical arguments, which was not fulfilled in the first half with the programming of the collection of current revenues of the central government.

FOREIGN DIRECT INVESTMENT

What, then, is the macroeconomic variable that sustains economic growth in Panama of 6.2% in the first half? 
It Is Foreign Direct Investment (FDI), which grew 26% in the first six months of 2014 compared to the same period last year.

To get an idea of ​​the impact of FDI in the first half of the relationship of this variable with respect to real GDP was 15%.

In recent years, FDI has been a significant variable in the growth of the economy.

From 2000 to 2013, it went from $ 624 million to $ 4.65 Billion, an increase of over $4 Billion during these thirteen years, an expansion of 646% in this period.

One explanation of why FDI grows so strong in Panama is because foreign companies are constantly buying Panamanian companies. This phenomenon has involved almost all activities of the country, but mainly in the banking, industrial and trade sector.

If it is good or bad to depend on foreign investment for the growth of a country, that is another debate. At this time Foreign Direct Investment is what keeps Panama growing…

 

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Panama: Fastest Growing Economy in Latin America - 6.7% in 2014

LaPrensa - Panama will grow 6.7% this year, which will make it the fastest growing economy in Latin America, according to the latest projection of the Economic Commission for Latin America and the Caribbean(ECLAC.

The Ministry of Economy and Finance (MEF) of Panama said the new estimate after learning that "progress ECLAC match those announced by the MEF, which place the performance of the local economy with a positive change this year will range between 6 % and 7% ", a result that would be below 8.4% in 2013.

Behind Panama is Bolivia with (5.5%), Colombia, Ecuador, Nicaragua and Dominican Republic (all with 5% growth)

Across the continent, Venezuela only experience negative (-0.5%) growth.

The growth forecast for all l Latin America and the Caribbean was reduced from the 2.7% to 2.2% forecast last April.

According to the Economic Survey of Latin America and the Caribbean 2014, since 2011 the economic growth of the region has been slowing, a trend that continues this year.

"In particular, during the first months has seen a sluggish due to a stagnation of gross fixed capital formation and slowing growth in private consumption. Counterpart has accelerated government consumption and net contribution exports has been more favorable than in the same period last year. growth for the exercise of economic activity in the region of 2.2% is expected, "said ECLAC in its report.

 

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The Price of Modernization in Panama

Currently, Panama has approx – 420,000 indigenous – who live in protected areas.

These areas are approximately 30% of the total territory of Panama, where 12% of the population have their own rules, principles and values.

Here is a video about the construction site of Barro Blanco, a hydroelectric dam in the Chiriqui Province of Panama. The dam has been the subject of significant controversy for years, as the construction project threatens the local population of the Ngäbe-Buglé, an indigenous tribe of Panama. According the Ngäbe, the dam will displace thousands of local inhabitants and impacts thousands more who rely on the river for potable water and fishing.

 

There is a “conflict” in process – a conflict of basic human needs in Panama.

SHELTER - WATER – FOOD – ENERGY and SECURITY are areas in which Panama must improve and develop to become the supposed “dragon” of the Americas.

 The Price of modernization in Panama is the continuous threat towards biodiversity.

A possible “threat” in the future may be the population growth of the indigenous – permaculture and bio-technology must be taught to grow organic food - as it is a must if they wish to conserve their protected areas in a sustainable manner considering how fast they are growing.

Transactions in Expo Chiriquí exceed 10 million dollars

There were Approximately 12 million dollars in banking and real estate transactions, in the second version of the Expo Chiriquí fair which occurred on July 2nd and culminated on Sunday July 6^th.

The fair offered about 70 projects to visitors and buyers according to informed, Ramon Horseman President of this event which was made altogether with the Panamanian Chamber of Construction and Grupo Trac.

Expo Chiriquí is not only a real estate fair, since also it contemplates other sectors like transport, hotels, services; what in opinion of its directors, it activates the economy to the being contracted to people and companies of the region in this scope.

 The number of visitors goes up to around the 10 thousand people.

Related articles

Food production at risk in Panama

Chiriquí: Valley of the Moon - A destination worth Investing

Rumours of New Theme Park to be built in Panama - when and where?

There are rumours that a North American theme park franchise is to be installed in Panama as a strategy to increase tourism in the country.

President Juan Carlos Varela designated the new Minister of Tourism, Jesus Sierra – who says that soon it will be announced the name of the franchise and location of the “new park”.

The Minister of Tourism says that the new player is experienced in the field of tourism, and will help promote business in Panama.

The sooner we know where this project is to be done – the sooner we will invest in the surrounding areas – Depending on how big of a scale this project is intended to be - real estate could have a significant boom if the theme park defines a new level of entertainment worthy to be a tourism attraction that will appeal the North and South of Americas equally. 

Where in Panama do you think the "new theme park" will be located?
Comment below!

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Panama's New Leader - President Juan Carlos Varela

Retirement has a Throne

Every year a country of this Planet is proclaimed the #1 place to enjoy the rest of your life after retirement, and its no big surprise that Panama earned this title amongst our civilization. The Annual Global Retirement Index (now on its 23^rd year) ranks the best international retirement destinations, and together with factors provided by InternationalLiving.com ranging from the price of groceries and average temperature, to utility costs and the friendliness of locals, the editors assess the results. After they do all the math, the result concludes that there is simply no other place where retirees can get more for their buck.  PANAMA is the place to be!

Panama is rapidly becoming a Capital for the world to invest into and this brings lots of incentive programs to make it a place worthy of spending the rest of live in. Having the American dollar as a currency and English as a widely understood language, it’s a magnet for retirees moving from the US and the world. This Central American nation has several significant reasons for obtaining this title, such as its pensioner residence program that offers discounts on real estate loans, medical expenses, pensioners entertainment expenses and much more. But most significantly the immigration process has been simplified for foreigners.

Panama has introduced new visas in the past year, that have made it easier to gain residence; and having a population of around 4,000,000 with a growth of 75,000-80,000 a year, has been a factor that encouraged major advances in infrastructure and boosted the economy in many ways. But besides many factors that make this country a “Happening” place, the low cost of living, the heavenly climate found across the country and the incredible scenery all around are key factors of this judgment.  

Some quotes from an Article on Forbes regarding this announcement are:

 

“If you’re planning to retire abroad—because you want to live better for less, diversify your investments or enjoy a greater degree of adventure—you should consider Panama…”

 

“Panama ranked No. 1 this year because it offers a “great combination of variety and value,” “No matter what it is you’re hoping to find, Panama is a good place to look for it.”

 

The Top 10 places on the list were:

1- Panama

2- Ecuador

3- Malaysia

4- Costa Rica

5- Spain

6- Colombia

7- Mexico

8- Malta

9- Uruguay

10- Thailand

Contact us if you are considering Panama for your next social or economic adventure! – we will gladly help you out, and point you to the right direction based on what you desire.

David Airport Status

There is a great deal of infrastructure investment going on in Chiriqui these days with the new four lane highway to Boquete well under way and the expansion of the airport in David. I flew out of the airport this past week and was told by some of the administrators that the renovated runway would be ready by the end of this month. In addition the foundation for the new terminal is nearly complete. Here is an article from La Prensa regarding the latest news on the subject.

Machine translated

Malek airport expansion progresses

 The work will enable the arrival of ships capable of carrying up to 300 passengers and improve the conditions and service.

TERMINAL. TERMINAL. Trabajos de ampliación en el aeropuerto Enrique Malek. Extension work at the Enrique Malek Airport. ESPECIAL PARA LA PRENSA/Teófilo González 1495734 SPECIAL TO THE PRESS / Teófilo González 1495734

 TEÓFILO A. GONZÁLEZ  David, Chiriqui
[email protected] [email protected]

 The remodeling and expansion of facilities Enrique Malek International Airport in the city of David progressing despite excessive rains late last year.

The rehabilitation and expansion of the airport terminal and runway Enrique Malek develop at a cost of 27 million 478 thousand 845 U.S. dollars.

 Sources from the Civil Aviation Authority (CAA) reported that the first phase (taxiway) was finished and is expected later this month will be delivered the second phase corresponding to reinforcement, sealing cracks and prenivelación of the main runway.

La tercera fase o extensión de la pista avanzaba en un 14% hasta el pasado 22 de diciembre, cuando se habían vertido 20 mil metros cúbicos de material selecto; y la cuarta fase o edificio adyacente de la terminal avanza en un 20%. The third stage or extent of the track progressed by 14% until Dec. 22 when they had poured 20 thousand cubic meters of material selected, and the fourth phase or adjacent to the terminal building by 20% advanced.

 The work awarded through competitive bidding to the company Riva Argentina SA, in mid-2009, allow for the arrival of ships capable of carrying up to 300 passengers and will significantly improve conditions and services of the airport.

 The Civil Aviation director, Rafael Barcenas, said the Enrique Malek airport expansion and construction of new airport terminals in Columbus and central provinces will serve as a hub to the national economy, mainly on the exploitation of tourism potential within the country.

Food options will finally come to Tocumen

Up until just a few years ago, Panama's international airport was a reflection of what you would get in Panama. Poor service and few choices in shopping or food. As Panama has leaped into the future with shopping malls, theaters, high rises, highways and an abundance of restaurants, the international airport that brings the many visitors to the country has been slow to change. But change has come and it is certainly for the better. According to an article in La Prensa this week, Tocumen will have a food court operating by January 2011. Up until this change, you have had few options on where and what to eat. This is a big change which should have a very positive affect on international travelers and bring in much needed revenue to the airport operators. Like many things in Panama, change comes with difficulty, but it does happen. Now if we can just get rid of Panama's version of the TSA, travel may be a civilized adventure again.

Alex E. HERNANDEZ
[email protected]

On 15 November the company International Meal Company (IMC) will begin work to build the food court formally Tocumen International Airport.

Contract was signed yesterday between the company and managed for the next 15 years the 'food court' and Tocumen SA

Jose Algarin, executive director for Central IMC said that the work will take 90 days and expected end of January 2011 have ended.

The company will set up a zone, 400 meters and will provide $ 4.5 million in the construction and equipping of the food court which will operate 10 restaurants, including Margaritaville, Cinnabon, Quiznos, Teriyaki, Carls Jr., Dominos and Chesters.

Algarin said they are negotiating with two other brands, but Panama, so they too are part of the expected area of food at the international airport, where there is only one restaurant and several small kiosks.

During the 15 years of the contract, Tocumen receive as rental fee $ 133 thousand a month and every two years this payment will increase by 5%.

Paperless Panama?

My dear freind Nancy Hanna shared this bit of news with me today. The government of Panama is working with Microsoft to make Panama one of the first countries to digitalize all government transactions. Of all the benefits this should bring I will be pleased if it will increase efficiency and reduce corruption as claimed in this piece. You can read more interesting information at Panamainfo.

Paperless Panama

The government of Panama is working with Microsoft to make Panama one of the first countries to digitalize all government transactions.

This project was presented at Panama’s recent Competivity Forum Oct. 19th at the Playa Bonita Intercontinental Hotel.

The National Innovaction Authority aims to accomplish this by 2012. 50 million dollars have been designated for this project.

Even though Panama is a so-called underdeveloped country, this digitalization will increase efficiency and reduce corruption, enabling Panama to jump ahead in development.

Panama’s education system is also working with Microsoft to create online training for teachers, provide teachers and students with laptops and improve education in general- a critical intiative since Panama’s public education system is one of the weakest in Latin America.

The digitization of transactions will save the country an estimated 25 million a year.

Also, in 2011, the  private sector will soon be able to make tax payments online-  saving money by elimination  countless hours of private sector time. Until now tax payments had to be made with certified checks.

The Martinelli government deserves congratulations for using innovation to develop Panama more quickly, more cost effectively and more effectively.