The New Middle Class in Panama
Along with the pace of strong growth in the Panamanian economy in recent years, so too is growing a new middle class who are driving consumption.
Tuesday, July 12, 2011
Homes and cars are the main investment goals of the new Panamanian middle class. For the first objective, the government plans to establish subsidies with the Preferred Interest Act, which pays 4% market interest rate on home purchases up to $65,000. If the market rate is 6%, the customer will pay 2%, and the state pays the other 4%. For households from $65,000 to $ 80,000, the subsidy rate is 2%. In this price range people buying are those who work in banks, industries, business and the health sector, whose household incomes are above a thousand dollars a month. With a monthly income of more than $350, middle class citizens are able to buy a $30,000 home.
Of the 520 housing projects on the market, only 18% offer homes for under $80 thousand.
In just six years the number of people in Latin America with middle class purchasing power increased from 103 to 152 million.
Proposals submitted by the Costa Rican government are awaiting approval by Congress.
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