International interest in Panama has been strong for a number of years on the back of government policies encouraging foreign investment and tourism. Panama’s dolarized economy. close allegiance to the US and recent election to the UN Security Council are all factors that build investor confidence in the country. The October 2006 decision to expand the Panama Canal underlines the continued strategic importance that Panama has in the region - a key factor underpinning future investor activity. And Donald Trump’s involvement in the Trump Ocean Club International Hotel and Tower in Panama City has raised the profile of the country further.

What we have at the moment is a booming property market, sharp increases in real estate prices across the county and a construction frenzy particularly in Panama City. A recent Economist article asked the question whether all the building activity in Panama city is “Too much, too quickly?” Can demand keep up with supply? We will maintain a watching brief but so far the market indicators are positive.

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Daniel Ortega has maintained a busy schedule of meetings with the foreign investment, banking and business communities since winning 38% of the national vote on 5th November 2005 on the back of a campaign focused on the twin themes of “Peace and Reconciliation.” In fact his first key meeting after the election was with representatives of the foreign investment. We attended the meeting and heard Ortega stress his commitment to foreign investment, recognizing it as one of the keys to continued growth and future prosperity for the country. He made clear his intention to support the DR-CAFTA and stated publicly that property rights would be protected.In a way this is not surprising. On a global level, the geopolitical scenery has changed significantly since the Sandinistas were last in power and this is well understood by the Sandinista leadership. Secondly, on a more local level, the current Sandinista party is very different to the Sandinista party of old. The members, by their own admission, have matured and mellowed. Many of them have substantial financial and business interests in the country and so have a very personal stake in the future economic success of Nicaragua.

In addition, the Sandinistas have been very involved in the governance of the country at all levels over the last 16 years. Having Sandinistas in government is not something new. Two of the biggest growth areas for tourism and foreign investment, the towns of Granada and San del Sur (along with the capital Managua), have had Sandinista local governments for a number of years now, presiding over rapidly growing and highly successful foreign tourism and investment markets.

Another factor to note is that although Ortega has won the Presidential seat, he has not secured a controlling number of seats in the National Assembly, the Liberal and Conservative parties (ALN and PLC) have a larger representation. This is an important factor in the new political landscape as the Assembly is equivalent to the US Congress and is the body responsible for passing laws, altering rules and establishing task groups.

If we look toward the long term, a Sandinista victory may well emerge as a positive factor in Nicaragua’s history, sweeping away once and for all the old concerns rooted in memories of the revolution that have hung over the country for over 15 years. In the short to medium term we are likely to experience some price stability as investors watch what Ortega does in his first few months in power. But after this period, as any uncertainty over Ortega falls away, the property market is likely to come back stronger.

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Belize is managing to combine the opportunity for investors to participate in both a rapidly growing tourism market and an emerging second home retirement destination. Although more affordable than other Caribbean destinations, this is not at the expense of local amenities and services something that sets it apart from more speculative offerings elsewhere. Certain regions could be described as a “mezzo market” - a term coined by International Living to describe markets that are not quite emerging; not quite developed. The risk/reward profile is perhaps more comfortable than purely speculative real estate markets elsewhere in Central America.

As you might expect, continued growth in tourism, environmental preservation and infrastructure improvement are important factors in the future success of the real estate market in Belize. Indications are good. The country has a progressive Tourism ministry that has been successful in putting Belize firmly on the map as a tourism destination. As the 2005 Moon Handbook puts it, ‘Belize is the only country within the Caribbean to experience consistent increases with respect to overall tourist arrivals since 1998.’ This reach is expanding into the luxury end of tourism, a trend helped by a number of celebrity real estate purchases in the country. We will shortly be reviewing tourism data for 2006 which will help put the trends into context.

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