While I am not too sure about some of the numbers in this report, I can tell you that here in David, the malls are usually always packed with shoppers and now near Christmas, totally unnavigable. David also has a huge selection of department stores that it did not have 5 years ago and I can tell you that the number of cars on the road has probably doubled in the time frame. The middle class is expanding rapidly and I only hope that the people down here do not over spend with money that they do not have because of easy credit.
Every dollar in Panama changes hands 28 times a month, compared to the 6 times that it does in other Latin American countries.
An article in Panamaamerica.com reports that the voracious consumption rate is primarily caused by Panamanians “free markets, open trade policies and the environment of doing business that allow prices to be affordable and quality good.”
A second factor is the very high level of liquidity in the economy of Panama: “There is an excess of money in the street and people use it to buy and consume.”
Thirdly, there is the velocity of circulation of money, which is much higher than other countries in the region.
Mainstream consumer psychology is the factor which helps us to understand the feverish consumerism in Panama . . “In Panama if there is no party to buy for they invent one. Which explains how easily Black Friday was adopted. There will soon arrive Red Monday and Green Sunday. We consume to live and we live to consume.”
Tom,
Again, I thank you for keeping me in the loop through your Panama Perspective newsletters. You continue to reinforce my arguements with brokers and realtors here in the US in terms of why Panama over other Latin American countries. Please continue to send the news about demographics, government, developments, taxes, incentives for retirees, etc….