If 2015 is any indicator, Panama’s construction industry is growing again, and that’s great news for the economy. Panama went through a construction boom during Martinelli’s presidential term that was unprecedented for such a small nation, and in Central America in general. This construction boom ran parallel to Panama’s double-digit economic growth, and likewise, when the economy slowed down in 2014, so did the construction industry. But all signs are looking up these days, and Panama’s quest to be a construction leader in the region is right on track. Even better, it’s adding more and more jobs, which is great news for future investments.
Construction by the numbers in 2015
On paper, the amount of construction in Panama in 2015 hasn’t been a monumental increase. In fact, it’s growing a bit slower than it did at its peak in 2009-2010. But the critical factor when looking at the construction sector’s rebound growth is that it’s growing steady; and that’s a great sign for the immediate future. In 2015 so far, Panama has added just over 68,000 jobs in the construction field, which is actually around 4,000 jobs less than 2014’s overall number. The caveat is that it’s much higher than the first two quarters of 2015, which lead many people to speculate that 2015 would end with double-digit job deficits from the previous few years.
What a construction rebound means to Panama
Large-scale construction projects, like Panama City’s Metro Line 2, the Panama Canal Expansion, and both residential and commercial high-rise developments require thousands of workers, banks, raw materials, and logistics support. In other words, new construction isn’t just bringing creating jobs, it’s feeding a variety of other service industries, which has a trickle down effect on the economy as a whole.
As an Panama investor, a rebound in the construction sector is also a clear sign of investment interest and future speculation. And it gives investors a wide range of options, especially in shipping, logistics, tourism, and real estate.
Building Panama’s economy through a healthy workforce
Adding new jobs is critical to growing Panama’s economy, and keeping the domestic workforce sustainably employed is even more so. Panama’s construction workforce is almost entirely comprised of Panamanians, which means that middle-class earnings and spending power remain high, when compared to other similar countries in the region. Construction jobs also add other sector jobs, as they build projects that require massive employment on completion. This keeps the workforce healthy, and keeps new jobs cycling through the economy, which creates a positive and bullish investment market. All in all, this rebound is a win for not only the current job force and service sector, but also it is also helping in building future jobs.
Investing in construction and development in Panama
With offshore investments in Panama, you need to stay aware of economic growth and movement, and a great barometer of this is added jobs, and industries that drive them. Panama is home to a number of foreign construction firms and has many opportunities for new ones. The demand is very high, but so is the competition. Some growth areas to look into would be raw materials/minerals, industrial transportation, and imports and supply chain logistics, as well as job safety and training centers.
For more info on how to look at construction growth from an investor’s perspective, Contact us today for a consultation.
