The corona virus in Panama has not yet overloaded the health system and the new hospital was opened a few days ago after only 28 days of construction. 300 construction workers have been involved and it has cost 6.5 million USD. The rating agency Moodys predicts that Panama will be the richest country in Latin America after Corona from 2021 (purchasing power per capita / more on this below). The goal of the small country is to become a role model in crisis management within the region and to fulfil its role as the “Hub of the Americas” and to further develop this role.

Here you will find the latest information on the Corona Virus in Panama.

Health (figures as at 23 April)

• There are currently 5,166 cases and 146 deaths.
• Doubling of cases every 19 days (Germany 54 days).
• R0 reproduction rate is at 0.95% (similar to Germany).
• Mortality rate is 2.9% (similar to Germany).
• Panama has performed the third most corona tests per capita in the Americas after Canada and Chile.
• The number of intensive care beds should be increased to 25 per 100,000 inhabitants (approx. 45 in Germany).
• There are car “drive-through” test stations.
• Thermal cameras are installed at the metro stations to detect possible fever in people.
• From Panama, the International Red Cross and the United Nations organize their aid deliveries for the other countries of Latin America.
• The logistical importance of Panama as the “Hub of the Americas“, from which Panama profits in “normal” times, has brought disadvantages in Corona times. At the beginning of the corona crisis, many international businessmen and tourists travelled the country and introduced the virus.

Economy

• First Quantum Mining’s Panama Copper Mine has temporarily suspended 7,000 work contracts as the mine was closed due to several corona falls. The mine was opened last year and is expected to represent 3-5% of Panama’s GDP when fully operational (info link).
• The Panama Canal exceeded its revenue forecasts in the 1st half of the fiscal year (Oct-March). The second half of the year will be significantly worse due to weaker world trade. Panama as a maritime services and logistics country offers its shipping customers payment deferrals and discounts on the use of seaports and other services. With the aim of ensuring that they continue to use Panama as a maritime location even in the current crisis.
• The rating agency Moodys leaves Panama’s rating at investment grade Baa1 with stable outlook despite the corona crisis. According to Moodys, Panama benefits from its sustained economic growth, the global importance of the Panama Canal and the country’s logistical location. According to Moodys, these are also the reasons why Panama will be the richest in Latin America from 2021.
• Nevertheless, the slowdown in world trade will have a major negative impact on economic growth in 2020 and lead to a weakening of debt ratios. Panama’s average real gross domestic product (GDP) growth for the years 2010-2019 was 6.2%. Moody’s estimates that the coronavirus pandemic will shrink the Panamanian economy by 1% in 2020.
• The World Bank currently estimates that the GDP of Latin American countries will contract by 4.6% on average in 2020. The economies of Panama (-2%), Colombia (-2%) and Paraguay (-1.2%) would be least affected. Brazil (-5%), Argentina (-5.2%) and Mexico (-6%) would be hit hardest. In 2021, Panama’s economy is expected to grow again at 4.2%.
• Workers employed in the “informal” sector are particularly hard hit by the crisis in Panama. These are “micro self-employed” who work without contracts and insurance. There are many of them.
• On 26 March, a government bond (36 years maturity / triple oversubscribed) was successfully issued and 2.5 billion USD were collected.

Life

• Tocumen airport should be opened to international passenger air traffic from 23 May.
• The curfew will remain in force until May 6 and the first relaxation is expected in 14 days. Currently, it is assumed that the opening of the economy and the curfew will be different in the provinces (federal states), as the above-mentioned health indicators differ.
• Panama was the first country in the region to introduce curfew controls and even separate them by gender (to reduce the number of people on the streets). Peru, Colombia and other countries have followed suit.
• Those who violate measures are threatened with a 3-month driving license suspension and social work (including cleaning buildings and streets).
• The population is very united behind the measures of the government and the situation is calm and peaceful. However, there have also been food thefts and occasional robberies at kiosks.

Main contents of the speech to the nation by the president on 22.04.:

• President Nito Cortizo and his team of advisors are guided by the best practices of other countries that are successful in containing the virus and opening up their economies. Germany is regarded as one of the role models here because of its robust healthcare system.
• He explained that tax revenues are currently falling due to the crisis (minus 42% in March). Private auditors of international repute will join the government team to analyse the country’s spending in connection with this pandemic.
• So far, about half a million food parcels and shopping vouchers have been distributed to vulnerable families.
• President Cortizo was deeply angered that government officials have accepted these aid packages even though they are fully employed. He is giving these workers 48 hours to voluntarily donate 20% of their salary for the next three months, otherwise he will take action against them.
• He also explained that the banking sector in Panama is extremely important because 27,000 Panamanians are employed there and funds are managed for local and international clients. All strategic decisions of the government that affect this sector must be analyzed very carefully.
• The country’s economic advisors have developed a strategic plan to create jobs through public infrastructure projects. These include the fourth bridge over the Panama Canal, the third metro line and the new children’s hospital.
• The President is optimistic that the country’s economic recovery will be sustainable. He has full confidence in Panama’s Minister of Economy and Finance, Héctor Alexander, a veteran politician who played a key role in restoring the country’s economy in the years following the 1989 US invasion.

FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

With the immediate ban of plastic bags Panama makes a big step forward in the protection of the environment. This makes Panama the first country in Central America to ban plastic bags.

In Panama there is currently no functioning recycling system in place, which unfortunately means that household waste ends up in large landfills. Here you can see waste children commissioned by companies who try to select “valuable” garbage and then hand it over to creative companies for pocket money. The recyclables are then cleaned, sorted and shipped to industrialized countries in order to be sold there for a lucrative fee. In the middle of last year I was in Panama City talking to the recycling and environmental representatives. These have set themselves the goal of introducing a sustainable recycling and waste management system and, in doing so, also relying on the support of internationally experienced waste companies.

A first major step by the Panamanian government was taken on 20 July 2019 by banning the distribution of plastic bags with immediate effect. Supermarkets and retailers must comply with the ban from now on. Smaller suppliers still have time until 2020.

There is still a lot of work to be done, but at least we are beginning to make progress on the important issue of environmental protection. Perhaps we will succeed in convincing international “environmental companies” of the possibilities in Panama as a “Hub of the Americas” and in helping them.

FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

Panama City has been chosen as one of the global cities of the future. It is the location for over 250 multinational companies which have decided to establish head offices there. Such companies include Adidas, Nestle, Roche, Bayer and Huawei & Co. Panama`s legal security, growth and US dollar currency are some of the many advantages. Additional characteristics, including a young population (0-24 years: 45% of people/ 23% in Germany), make Panama City one of the global cities of the future alongside Shenzhen (Link). 

FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

One of Panama`s advantages as an investment location is the US dollar.

The dollar has been Panama`s official currency since 1904, meaning that the nation cannot simply switch on a money printing machine like most other countries. Soaring inflation cannot affect Panama as it has done in so many other places in the past. Even the International Monetary Fund has praised Panama for the stability of its banking system. The country`s markets were spared from the 2008 financial crisis. Panama does not possess a national bank in itself, as the banks are all self-responsible and an “emergency central bank” is not required.

Following the rise of the dollar in the last years, I am often asked why real estate investments in Panama are not that expensive. In principle, the development of a currency does of course have an important influence on the profitability of an investment. In terms of real estate in Panama, one should bear in mind that a powerful dollar simultaneously brings cheaper properties. This is because investors are always somewhat more reserved when purchasing dollar-based real estate if the currency is strong. A weaker dollar, on the other hand, brings about a greater demand for property and rising prices as a result. The connection is similar to acquiring gold in US dollars. Ultimately, no one can predict the future development of currencies. The dollar, however, certainly makes for a broader diversification to your portfolio and contributes to a reduction in risk.

FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

• Panama, like so many other emerging nations, has no lasting rubbish and recycling system. There is no garbage separation and trash finds its way to unfiltered tips.
• The education system for the population at large needs to be improved. There are of course great numbers of state schools in Panama, but the quality of these compares badly to the private, international schools which are also found here.
• The difference between Panama City as a modern metropolis and the rest of the country is significant in terms of income, education and infrastructure
• While corruption is being fought on a broad scale, the country hasn`t yet reached the standards of industrial nations. The Varelas government, which has been in power since 2014, is striving to improve the situation. It still has a lot of work to do however.
• After the Panama Papers, the government signed an OECD agreement in October 2016. This allows for the future exchange of international financial data. Further steps leading to more transparency should also ensue.
• Despite Panama City`s first metro links, there are still a lot of traffic jams on the roads. Car ownership is part of the general culture and often leads to far too many vehicles placing a burden on the transport network. This will hopefully soon improve through additional metro links, the introduction of modern buses and the construction of bus lanes.

FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama