REI Wealth Monthly Issue 02 | Page 60

BOOMTOWN: PANAMA CITY MARGARET SUMMERFIELD went to one of the malls in Panama last Saturday afternoon. Big mistake. It was packed. I picked my way past the crowds of shoppers filling the walkways. I popped into stores and popped right back out again, figuring I’d go back another day when it wasn’t so hectic. I wanted to grab a juice, but the lines for service at the little cafes looked way too long. It’s my idea of shopping hell. But it’s also a sign of Panama’s increasing prosperity. Unemployment is at an all-time low. Salary levels are up. The middle class is growing - and spending more. The mall I visited is expanding. A second mall in the city has more than doubled in size since I moved to Panama five years ago. A huge new mall between the city and the airport opened in late 2009; there’s another new mega-mall west of the city. It’s not just malls and shopping. Panama’s on a roll. You’ve probably heard about the mammoth $5.25 billion project to expand the Panama Canal. Once completed in 2014/2015, the Canal is expected to generate $2 to $3 billion a year in profit for the government. The government has already approved the creation of a sovereign wealth fund to save the surplus revenue. Other big projects underway include a new airport on the coast, airport and port expansions around the country