Panama Economy Analytics

Key economic indicators including GDP, inflation, and interest rates

GDP

$83.4

Gross Domestic Product

GDP Per Capita

$16,294

GDP per person

Inflation Rate

34.0%

Annual change in consumer prices

GDP

Gross Domestic Product

GDP Per Capita

GDP per person

Inflation Rate

Annual inflation rate

Unemployment Rate

Percentage of labor force that is unemployed

Government Debt to GDP

Government debt as percentage of GDP

Additional Insights

Expert analysis of Panama Economy trends and investment implications

Market Overview

Panama's economic environment is favorable for real estate investments, with low inflation at 0.34% supporting stable purchasing power and a relatively stable currency reducing risks for foreign investors. However, financing costs remain a crucial consideration due to variable interest rates impacting mortgage affordability and investment returns.

Key Findings

Data-driven insights

•Panama's GDP has shown consistent growth, averaging 5% annually over the past two decades, bolstering renters' purchasing power.
•The inflation rate of 0.34% is notably low, which supports stable real returns on property investments.
•Current interest rates average 5%, influencing both investor financing strategies and buyer affordability of mortgages.
•Unemployment has decreased to 6.5% in 2023 from a peak of 13% in 2020, indicating improved rental demand and payment reliability.

Market Trends

Historical patterns

•Panama's GDP growth has been among the fastest in Latin America since the early 2000s, driven by infrastructure developments and a strong service sector.
•Inflation has remained low and stable for the past decade, contributing to economic stability and investment security.
•Interest rates have fluctuated but are trending downward, reflecting global monetary easing and domestic economic policies.

For Investors

Actionable takeaways

•Consider locking in current interest rates for financing before potential future increases.
•Leverage low inflation to achieve higher real returns on long-term property investments.
•Monitor employment trends closely to anticipate shifts in rental demand and adjust property portfolios accordingly.
•Utilize currency hedging strategies to mitigate potential currency risk, though historical stability offers confidence.

Market Context

Panama is a strategic economic hub in Latin America, characterized by its robust service industry, including banking and logistics, largely due to the Panama Canal. Its economic policies have fostered a stable investment climate, attracting significant foreign direct investment in real estate.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.