News > May 2007

May 20, 2007 Richly Retired: Panama Lures Pensioners South
May 20, 2007 Panama's Health Tourism Boom
May 20, 2007 Panama's Economy Set to Surge With Canal Expansion
May 19, 2007 The Panama Canal Expansion Equals a Brighter Future for Panama
May 19, 2007 Booming Market, Stable Economy, and Celebrities. What's Next?
May 19, 2007 Quotes from the Press: Panama Makes an Impact Around the Globe

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The Panama Canal Expansion Equals A Brighter Future for Panama

06/19/2007

During the recent years, Panama has been exploding on all sides. Their economy is growing, the real estate market is expanding at impressive rates, and business investors seem to be flocking to set up new nests.

Now, with the expansion of the Panama Canal approved and ready to go, there seems to be very little that can stop this country from progressing.

The $5.25 billion expansion of the canal was set to begin in October of this year, but it seems they are ahead of schedule and have moved the starting date up to August.

This new project will create a third set of locks that will be wider in order to let larger vessels through. Not only will this invite more traffic from large ships coming from Asia, but a third set of locks will also allow for smoother traffic. It will capacitate the canal to accommodate a greater number of ships, making it easier to get goods delivered quicker. This translates into less time and money spent on delivery, which in the end will be beneficial for producers and consumers.

Originally, it was the French who initiated the planning and building of the Panama Canal, but due to poor resources, disease, and construction problems, they were forced to abandon their plans and sell their rights to the canal. The U.S. took over, and the canal was completed in 1914.

Up until 1999, the U.S. had complete control over the canal, but in December of that year they agreed to return the rights of the canal to its country. There were some doubts as to how the Panamanian Government would manage the canal, but operations continued to run smoothly.

The Panama Canal has become a source of pride for its people. The recent proposal to expand the canal received an overwhelming 80 percent vote. The canal is an important contributor to Panama’s economy, this year alone they are expecting to yield about $1.4 billion in revenue. However, with the expansion of the Panama Canal, it is projected to yield $6 billion annually by the year 2025.

A chain reaction of events have propelled this little country in Central America to open their doors to new opportunities. Tax breaks and benefits are convincing foreign investors to rush towards Panama. As a result of the expansion of the canal, 40,000 new jobs will be created. The real estate market continues to grow as a result of these positive changes. The growth is still unprecedented.

In this sunny paradise of Central America, Panama's future looks brighter than ever.

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