When you’re looking for a place to relocate to, it’s important also to research their economy. A strong economy means jobs, low unemployment, higher wages, and less crime. A politically stable government is important too.
Panama’s economy was strong until the pandemic hit. Then it took a sharp decline of more than 17%. But since late 2020, Panama’s economy has been on a steady increase, as you can see in the chart below. Worldbank says Panama’s GDP has rebounded from the COVID-19 crisis with 2021 growth at 15.3 percent, driven by copper mining from Panama Cobre, construction, manufacturing, and commerce. The mining sector accounts for 7.1 percent of GDP in 2021, up from 3.8 percent in 2020.
Focus Economics reports that “The economy of Panama is centered on a highly-developed services sector, which represents more than 75% of gross domestic product (GDP). The Panama Canal and use of the U.S. dollar have promoted the strengthening of a globally-oriented services economy. The Panama Canal is essential to global trade and accounts for almost 10% of the country’s GDP. Other important components of the service economy are the Colon Free Trade Zone (CFZ), which is the second largest free port in the world, and the Trans-Panama Pipeline, which allows for the transport of crude oil between the Pacific and Atlantic coasts. The license and registry of the Panama flag to merchant ships is another source of economic activity. Panama also has a large logistics and storage services sector, as well as a modern banking and insurance industry. The agricultural sector has lost importance over the years, accounting for less than 10% of GDP today. The main cash crops produced in the country are bananas, corn, coffee and sugar.”
Wages have been going up too. In Panama, it’s rare to see homeless people or people begging for money. Wages are much higher in Panama than in other Latin American countries.
Bob also has an excellent YouTube Channel with weekly updates about life in Panama and Panama’s economy.
Who Is Bob Adams? This is from Bob’s “About Us” page on his Retirement Wave website:
“I’ve spent nearly all of the five decades of my adult life (I am 74) working globally in more than 40 nations in North America, Central America and the Caribbean, South America, Europe, Africa, the Middle East, and Asia. I have worked for non-profit humanitarian agencies, the “foreign aid” programs of the UN and the US, and several international business firms.
I’ve taken an active role in global affairs and done my best to promote ideas that I hope will ease the development of this new “global community” that is forming around us. I’ve been widely interviewed and published. I have written on six occasions for Barron’s, the well-respected US financial journal, on topics including American migration to other nations. In addition, I was interviewed by Erin Burnett when she hosted CNBC’s “Street Signs” financial program. I also have written at the Wall Street site, Minyanville, as well as at Business Insider, the Asia Times, and others. I have been interviewed many times in the past for media ranging from Singapore’s Straits-Times to Australian public television, BBC, USA Today, etc. I have made public presentations over the years at various locations ranging from the National Press Club in Washington DC to the Universidad Latina in Panama City.”Bob Adams
Bob is a trusted source for information about what’s going on with Panama’s economy!