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.