Panama has always been an outstanding choice whether you are looking for a country to move to or a lovely country to visit on vacation. This remains true now, too, and especially so because of the very low inflation in Panama!
Panama remains resistant to inflation
Panama has managed to place itself in a unique position. Outwardly, Panama seems like a country heavily dependent on tourism and international interest. However, smart decisions on the part of the government as well as the beauty and appeal of the country itself, have managed to secure its place better than even much larger countries have done. By appealing heavily to expats looking for a country to settle, Panama has seen enough cash and business influx to relatively secure itself from inflation so far. This has led to Panama having an inflation rate of only 3.5% in July of 2022. All during the time when most countries were already climbing into double digits. And this trend continues safely even today, with Panama far behind other countries in inflation. Of course, this also strongly reflects Panama’s economy, such as the stability of Panama’s real estate.
Comparison to other countries
Just to show how impressive Panama’s 3.5% really is, let’s look at some other countries during the same time period. At the same time, Panama saw an increase of only 3.5 percent, and Nicaragua saw an inflation of 11.5%. Costa Rica was not much better, with 11.4%, and Honduras was only slightly ahead, with 10.9%. Even Guatemala had an inflation rate of 8.3 percent during this period. And Panama was not doing better than the countries in its region. The US reported inflation of 8.5% during July. This means Panama was doing much better than even the biggest and most economically advanced countries! And, of course, we need to take into account the original cost of goods and services that were increased by 3.5%. It goes without saying that prices were lower in Panama, to begin with!
The products that are particularly affected in Panama
Of course, this isn’t to say that no products have seen particular price increases. Panama has its advantages and disadvantages too, which are affected by the very low inflation in Panama. For example, the costs of gas, electricity, certain medicines, fuel, and even alcoholic beverages have been among the products most impacted by the shift in worldwide economics. However, as you may note, this covers many product groups acquired through import in Panama. This is, unfortunately, an expected side effect of the inflation suffered in other countries. And while this does mean that the price of groceries not produced within Panama has risen, the same does not apply to locally-produced foodstuff! If you decide to live in Panama, you can still benefit from incredibly low fruit and other produce prices. Most expats are shocked by prices when they first visit Panama!
The impact of inflation on Panama services
Overall, Panama’s services have not seen a significant shift in price. Of course, some impact has been inevitable due to the increase in the cost of fuel, gas, and import prices. However, even with inflation, the prices of local services are still much cheaper than the equivalent in other countries. Still, the moving experts from nwmoving.com advise expats traveling to Panama to properly plan their move and secure any storage facilities ahead of time. Even in Panama, there are outlier companies with unreasonable prices.
The benefits of crypto acceptance
One of the reasons why very low inflation in Panama has been kept at that level is the recent shifts in approach to crypto. Crypto is officially recognized in Panama. And its widespread use and promotion have, overall, had an enormously positive effect on the local economy. Especially since it is not just possible but relatively easy to use crypto to finance the purchase of a home in Panama. Panama real estate for sale is already quite affordable. When paired with the convenience of being able to just fund it through crypto, which many still see as an unstable source of investment and are therefore eager to turn into a property, interest in Panama has exploded. This means that the number of expats has risen in Panama. And in turn, the influx of foreign currency that expats introduce has greatly strengthened Panama’s economy.
Overall low cost of living in Panama
The final thing we need to mention when discussing the very low inflation in Panama is the local cost of living. We hinted at it already, but it’s cheaper to live in Panama than in most other countries. You can live a very comfortable life here with only around two or three thousand American dollars a month. And we mean that the money can cover pretty much l living expenses with only five hundred to one and a half thousand dollars going to cover the cost of rent for a person who doesn’t own their own home. You’d barely cover rent in many US cities for that money. Couple that with environmental efforts and other drives to improve life in the country, and Panama is a great place to live.
The appeal of the very low inflation in Panama
With everything we’ve already covered about the very low inflation in Panama, it isn’t hard to see why so many people are moving to this country. Besides being a just downright beautiful and dreamy place to live, people can comfortably set up their homes and family. Young families have a much easier time getting their lives off the ground, especially if they work online and aren’t much affected by moving. Furthermore, individuals looking to spend the rest of their lives in retirement get a lot more bang for their buck. As such, Panama’s strategy for battling inflation through drawing in foreign currency, investors, and expats is more than successful. And it’s unlikely that such a winning strategy will falter any time soon.