If you’ve got offshore investments in Panama currently, or plan to make some in the next year, then the Panama Canal Expansion should be squarely on your radar. Though it’s been mired by work delays in the past year or so, the Canal is on schedule to be finished in early Spring 2016. This expansion is one of the most economically anticipated events in recent history in Panama, and investors are excited about how it will affect their bottom line, and future opportunities in the country. Whether you’re invested in Real Estate, logistics systems, services, or finance, you will see a positive ripple effect from the Panama Canal Expansion; and if you’re an offshore investor in Panama, that’s great news.
Where will you see the most growth from the Canal?
The most immediate growth you’ll see from the Panama Canal that will affect your offshore investment is in the shipping and logistics sector. New warehouse space, shipping container storage, ground support, and import/export will see a huge spike in demand. This also means that industries that rely on shipping and logistics will see an increase in business as well. This should correlate to big business for pharmaceuticals, machinery, electronics, and other consumer goods. With the new, wider Canal Expansion, you will see supermax ships capable of massive cargo increases, which should nearly double the volume of ships, and ship cargo that passes through daily.
Why offshore investment is hot right now in Panama
Investing in Panama has been on the radar for quite some time now, but as we lead up to the completion of the Panama Canal Expansion in 2016, the country is at a critical point, and it’s a buyer’s market. Banking continues to be favorable with the US dollar, low interest loans, and tax benefits for setting up an offshore corporation. Using your investment capital to start a new business, or grow an existing one is also very favorable right now, and the Panama Canal Expansion has a big part to play in this. In fact, the Panama Canal Expansion has been a big driver in future investments in the country for a few years now. But as we head into the final stretch of the massive project, the economy is preparing to meet it head on.
What type of offshore investment should you make?
The best thing about choosing to invest offshore in Panama is that there are many low risk investment opportunities, you really can pick and choose thoroughly until you find something that’s a good fit for you. Panama is a country on the move, so looking at future potential, be it in Real Estate, shipping, or imports is critical in finding an investment that meets your expectations. You’ll also want to look at financial laws, banking regulations, and contract law in Panama before moving ahead with any big decisions. We recommend that you first consult with a skilled local attorney who is on the ground, and knows the lay of the land in Panama, and even visiting the country before you commit. Even for small investors, getting to see Panama first hand gives you a giant advantage as far as preparation. Remember the market is hot, which means there will be lots of competition for your business.
We recommend that you find something you’re passionate about, something with big future growth potential, and something that’s sustainable an following the lead of the new Panama Canal Expansion. Keep an eye on the current economic trends in the country, and invest when you are confident that the time is right.
