Panama ranks high among expats of all types, and when it comes to the best countries in the world to retire, it was recently named No. 1 in a 2022 index of the top 10 retirement destinations based on factors like retirement benefits, climate, healthcare, and cost of living.
Combined with an abundance of striking scenery that includes picturesque beaches, lush rainforests, and a warm tropical climate, it’s no wonder so many are choosing Panama for both relocation and investment. Odds are, you’ve at least heard someone talk about their dreams of moving to this beautiful country or have seen the enticing images of its stunning landscapes, but if you’re still asking, “Why Panama?” you’ll want a more in-depth look for a better understanding of its many delights.
Stable Economy
One of the most striking economic and political success stories over the past 30 years, Panama is the region’s fastest-growing economy and has managed to remain a stable democracy. After the toppling of dictator Manuel Noriega leading the way for Guillermo Endara to win the presidential election in 1989, democracy took root soon after. Today it remains a peaceful, stable democracy with no super-polarized political parties.
Panama was growing at four times the regional average before the COVID-19 pandemic. Between 2014 and 2019, its GDP grew at an average rate of 4.6 percent, with services being the primary driver, contributing to nearly two-thirds of the country’s increase in GDP. While the pandemic had negative effects, the economy quickly rebounded in 2021 with the GDP growing by over 15 percent. Increased movement at the Panama Canal, a vital conduit for global commerce since opening in 1914, higher copper production, and a significantly higher number of airport passengers all play a key part. Tourism is also a factor, with strong performance among the hotel and restaurant industry as well as transport, communications and real estate.
The Dollar
Panama uses the US dollar, as it has since it became a nation in 1903. While the country’s currency unit is called the balboa, it hasn’t been printed for decades. All international transactions are in US dollars and the currency is also the dollar, avoiding the need to measure the worth of something that’s priced in a foreign currency or concerns over foreign exchange devaluation for U.S residents.
Safety
Panama ranks among the safest countries in Latin America according to the Global Peace Index. Panamanians prefer to avoid conflict of all types, with violent crime, including crime involving guns, rare, particularly among foreign tourists. The majority of crime is limited to petty theft. As you would anywhere, it’s important to be extra-vigilant on specific streets of major cities and avoid walking after dark in less-traveled places alone. The areas of San Miguelito, El Chorillo and Colon should all be avoided.
Healthcare
Healthcare in Panama is some of the best you’ll find in Latin America, with private hospitals and clinics providing high-quality services that often top those in North America. There are many English-speaking doctors who have extensive training outside of the country, including the U.S. and Europe. Yet regular medical care, hospitalization and surgeries typically cost less than half of what you’d pay in either place.
The best hospitals and medical services are in Panama City which provides superior care using state-of-the-art equipment and technology. Hospital Punta Pacifica is the only hospital in the Latin America and Caribbean region affiliated with Johns Hopkins Medicine International. Other outstanding options include Salud, Centro Medico Paitilla (affiliated with the Cleveland Clinic), the Panama Clinic and Hospital Nacional.
Climate
The diverse terrain in Panama makes for diverse climates, with both coastal areas along the Pacific and Caribbean experiencing a tropical maritime climate, meaning warm and humid at sea level. Cooler temperatures can be enjoyed in the mountain areas such as Boquete, Sora, or El Valle regions. There’s a low risk for major storms with the country’s location keeping it safe from the worst impacts of hurricanes that form in the Caribbean.
There are two seasons in Panama, the dry season which generally runs between December and April, and the wet season from May through November. Between May and July along the Pacific coast in places like Panama City, showers are frequent in the afternoon but only last an hour or two before the sun is shining again. Even if you’re on the rainier Caribbean side, the sun usually makes an appearance in the morning or late afternoon.
Time Zone GMT -5
Panama is in the GMT -5 time zone which is the same as the Eastern Time Zone, including part or all of 23 states and areas of eastern Canada. That makes it much easier to stay in touch with loved ones back home, especially when compared to places in Asia where you might have to contend with a 12-hour+ time difference.
Easy Access – Hub of the Americas
Thanks to Panama’s geographical location, it’s easy for friends and family to visit, or vice versa. It’s a hub for air travel with regular direct flights between Panama City and all the U.S. major flight hubs. Direct flights to destinations throughout Central America, South America, Canada and Europe are all available.
Tocumen International Airport is just outside the capital city and was recently expanded with a second terminal opened and preparations for a third are already underway. Of course, with the Panama Canal, yachts, boats, ships and other vessels all pass through on their way between the Pacific and Atlantic oceans.
Wildlife
With so much unspoiled terrain, wildlife thrives in Panama, with over 230 mammal species inhabiting the country. That includes many different monkey species like spider monkeys, howler monkeys, capuchins and tamarins, along with five species of big cats, including jaguars, ocelots and cougars. Panama is also one of the best places to witness a sloth in the wild, while rare animals like the giant anteater, West Indian manatee, and even the Andean bear have all been documented here.
An underwater paradise awaits in Panama too, which includes the second-largest coral reef in the eastern Pacific in the Gulf of Chiriqui. Snorkelers and divers can look for more than 800 fish species, 33 species of sharks and 20 species of cetaceans, including humpback whales that are in the area from July through September.
Standard of Living: First Worldesque in Many Ways
One can live very well in Panama and for a lot less than in many other countries. While it may be considered a third-world country, it’s above third-world standards. Panama City is a major metropolitan city with booming skyscrapers, high-end shopping, and chic restaurants. Nearly anywhere in the country you go you’ll find high-speed Internet, water that you can drink straight from the tap, reliable power and cell service, while the roads are some of the best in the region.
From the City Beaches area within easy reach for weekend commutes from Panama City to the Bocas del Toro archipelago in the Caribbean and small towns in the interior like Santa Fe, much of it is anything but Third World.
