Welcome to the Panama Weekly News Roundup! 2014 still feels fresh and news keeps on getting better for Panama’s economic sector, with delays to Nicaragua’s canal to the north, an end to their own Canal woes in sight, and a U.S. investment plan with real meat on its bones. As well as a repeal of a short sighted last minute addition to the tax code, it looks like Panama will be beginning 2014 strongly.
Election Battle Shaping up in Run Up to May Polls
In the run up to the Panama presidential elections a number of papers and commentators are proclaiming Jose Domingo Arias, of the incumbent Democratic Change party, to be considerably in the lead in the pre-election polls. Taking in 208,000 Panamanians, the poll was the most extensive carried out so far, although it may be worth taking with a pinch of salt – both PRD and PP heartland voters may have been overlooked to help shape figures. As ever with Panamanian elections in the last 10 years, it remains to be seen who will emerge as the clear candidate in the last few months before voting day.
“When 134 days left for the elections of 4 May, the poll numbers continue to favor the incumbent candidate for Democratic Change (CD), José Domingo Arias.
And that if elections were held today, Arias would win with 35.3% of the vote. Second end of the bearer of the PRD, Juan Carlos Navarro, with 26.7% of the vote, while the representative of the Panamanian Party, Juan Carlos Varela, accumulate 21.6% of voting intentions.2″
Source: Mi Diario
Panama Leads Regional Growth Entering 2014
The year on year economic growth of Panama is set to continue well into the middle of the decade, with new figures posted showing a booming economy hitting growth a growth rate of 7.3%. This stat represents Panama’s resilience and an increasingly diversified economy, balanced as it is between construction, finance, tourism, and service industries. As Panama continues to flourish, investors are subsequently presented with viable new opportunities.
“At a rate of 7.3%, Panama will be the fastest growing country in the Americas this year, according to the World Bank predicted yesterday in its biannual report on Global Economic Projections 2014.
Latin America and the Caribbean will grow, as a whole, 2.9%, four tenths compared to 2013. It is expected that the major economies of the region, such as Brazil and Mexico, have superior performance than 3%.”
Source: La Prensa
Real Estate Prices Rising in Metro Panama City, Panama
6 months can make a big difference in a city like Panama, with real estate prices shooting up in that time period. Strengthened in reputation abroad, territories such as North and South America have seen a dramatic increase in interested investors. The coastal and waterfront areas of PTY are the main focal points, with supply and demand economic principles taking form – a smaller number of available apartments is fueling rising prices.
“Because developers were not building new high rises between 2009 and 2012, the next 12-24 months supply of brand new apartments will be limited to a handful of projects; this as opposed to the roughly 4,000 new apartments that hit the market over the last three years. This slackening of new inventory, combined with steady/rising demand will continue to drive prices up.
Now is the right time to take a serious look at the market, which after being flat for over three years is once again trending upwards. In real estate, its not just about location, it’s about timing.
2014 is going to be a game changer for Panama. The Metro will open and the road reorganization projects throughout the city will be completed, plus the historic renovations in old town and the Cinta Costera 3 will also all be completed, breathing new life into a city that’s felt like it has been under construction for the last five years.”
Source: Panama Equity Real Estate
Panama Canal expansion: American Fears Coming True?
With the failure of the Bechtel bid for the Panama Canal expansion, frowns appeared in the higher seats of government. During the latest round of squabbling that frown deepened significantly, with a belief that the low ball bid chosen by the Panama Canal Authority is the direct cause of the bid grinding to a halt and further delaying an increasingly costly project. With huge investments in ports in both the eastern and western United States, notably PortMiami in Florida, the U.S. has committed itself totally to further timely expansion. In what is the 100th anniversary of the completion of the Panama Canal, it will take some serious progress to assuage American worries.
“In Washington, the new canal is viewed as an important element in the country’s economic recovery, and industry and government officials alike are counting on it being completed. Last November, for instance, Vice-President Joe Biden travelled to Panama with a handful of local and national politicians in order to stress the “profound effect” the new waterway will have on the US economy.
That effect can be mostly seen across US ports, and especially in cities like Miami, Baltimore and Norfolk, which have been investing heavily in order to ensure that they will be able to take the supersize container ships that will travel through the canal. The American Association of Port Authorities projected in 2012 that about $46bn will be spent in US ports by 2017 on modernizing their infrastructure.”
Source: BBC
3 of our Most Read Articles in 2014
This month we’ve had a large amount of interest in a number of articles addressing the present, clearing up the past, and discussing the future. The first article we’ll take a look at focuses on a decision overturned, as Panama’s National Assembly removed an international taxation clause which would see corporate bodies and offshore corporations subject to more than just Panama’s low “local” taxation. Continue reading about the Panama tax law in our article Don’t Worry, Panama is STILL a Tax Haven
Our second article centered on the benefits of opening a business in a tax haven such as Panama, with access to excellent banking facilities, secrecy laws, and simplified steps to establishing foundations and more. Click here to read more about Benefits of Opening a Business in a Tax Haven
Panama’s Economic Outlook was our vision of the future, taking in the upcoming fiscal year for the republic as well as examining commentator’s views on reasons to invest over the upcoming year. 6 years of strong growth consistently have led to an unshakeable faith in the country’s potential – we break this sentiment down and get to the facts of the matter. Read more about our Economic Outlook for Panama in 2014
