Focus on Panama
Panama is far more developed and modern than most people anticipate.
The truth is, a move to Panama doesn’t mean a move away from the First-World.
This country has the most advanced and modern infrastructure in the region.
Panama has been one of our favourite locations for overseas investment
and retirement for many years.
In fact, Panama was ranked as the world’s best retirement destination in 2014,
and again in 2016, due to the amazing values.
First-World convenience at Central American prices — you can still take a taxi
across town for a few dollars, see a movie for under $4,
get a trim at the barbershop for less than $5...or have dinner for two
with a bottle of wine at one of the city’s trendy restaurants for just $30.
Here you can find the luxuries and amenities that you would hope for anywhere else,
and can even afford more of them due to Panama’s low cost of living.
Panama City is a bustling, vibrant, and exciting metropolis.
There’s a reason it’s called the “Hub of the Americas,” and you can thank
the Panama Canal for starting it all.
Since it was completed over 100 years ago, it’s been the conduit
between east and west, north and south.
And it’s made Panama a place where cultures converge.
The influence of many different nationalities is vast.
Walk the cosmopolitan streets of Panama City and you will hear English
at every turn…along with dozens of other foreign languages.
Many of the expats here cite Panama’s geographical diversity and location,
with proximity to North America being a major factor in them choosing Panama
for their retirement destination.
In a country roughly the size of South Carolina, you’ll find mountains and beaches
within an easy striking distance — no matter where in the country you are.
Wake up on the Caribbean and have lunch overlooking the Pacific
…they’re a couple of hours apart at the isthmus’ “skinniest” sections.
There truly is something for everyone in Panama ...
As well as offering retirees a location to suit all tastes,
another big draw is the country’s famed Pensionado Program.
This program of discounts is given to all who qualify by age
(55 for women and 60 for men) — expat or Panamanian.
Then there’s the cost of living.
Panama is not the cheapest country in the region,
but your dollar will still stretch further than it does up north.
If you daydream about sunshine, tropical beaches, and welcoming locals,
then Panama may be for you.
A couple can live well here for $2,500 a month or less, including rent.
We have compiled this special report to give you an overview
—a taster—of what Panama is all about.
Read on and it’s likely you’ll fall in love with this amazing country …
just like we have.
​
CLIMATE:
Panama has a tropical climate with a yearly average temperature of 31° C
and humidity of about 80%.
While there is little seasonal variation, daytime/night-time temperatures can vary greatly.
On a typical dry-season day in the capital city, the early morning minimum may be 24° C
and the afternoon maximum 29° C.
The temperature seldom exceeds 32° F for more than a short time.
Temperatures on the Pacific side of the isthmus are somewhat lower than on the Caribbean,
and breezes tend to rise after dusk in most parts of the country.
Temperatures are markedly cooler in the higher parts of the mountain ranges,
and frosts occur in the Cordillera de Talamanca in western Panama.
Almost all of the rain falls during the rainy season, which is usually from April to December
(though certain areas, such as the Caribbean province and islands of Bocas del Toro,
may have a longer wet season).
Though tropical storms may occur, Panama’s proximity to the equator
puts the country outside the “hurricane zone.”
THE ECONOMY IN PANAMA
Panama’s dollarized economy rests primarily on a well-developed services sector
that accounts for three-quarters of GDP.
Services include operating the Panama Canal, logistics, banking,
the Colón Free Zone, insurance, container ports, flagship registry, and tourism.
And Panama is the centre for offshore banking.
Panama's transportation and logistics services sectors, along with
infrastructure development projects, have boosted economic growth.
However, public debt surpassed $37 billion in 2016 because of excessive
government spending and public works projects.
The US-Panama Trade Promotion Agreement was approved by Congress
and signed into law in October 2011, and entered into force in October 2012.
Future growth has been bolstered by the Panama Canal expansion project that began in 2007
and was completed in 2016 at a cost of $5.3 billion - about 10-15% of current GDP.
The expansion project will more than double the Canal's capacity,
enabling it to accommodate high-capacity vessels such as tankers
and neopanamax vessels that are too large to traverse the existing canal.
The US and China are the top users of the Canal.
Strong economic performance has not translated into broadly shared prosperity,
as Panama has the second worst income distribution in Latin America.
About one-fourth of the population lives in poverty; however,
from 2006 to 2012 poverty was reduced by 10 percentage points
THE PANAMA CANAL:
The U.S.-funded Panama Canal project began in 1904.
It was completed in 1914 and used 61 million pounds of dynamite,
a “greater amount of explosive energy than had been expended in all the nations’ wars,”
according to historian David McCullough in his book, The Path Between the Seas.
This nine-mile waterway is one of the man-made wonders of the world,
and the primary reason for the strategic importance of Panama in world trade.
In October 2006, the people of Panama approved the Panama Canal
expansion mega-project via referendum.
The inauguration of the project took place on Monday, September 3, 2007.
The immense undertaking was easily the nation’s biggest project since the canal was completed in 1914.
The $5 billion modernization—completed in 2016—added a third lane and set of locks to the canal.
The project has opened the waterway to a host of new vessels that have been dubbed
“Post-Panamax” size because they were too large to fit through the former canal system.