The New Middle Class in Panama

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.

For the purposes of market analysis, middle class sub-sectors can be defined according to the range of housing they have, explained Elisa said Suarez, executive director of the National Housing Developers Council (Convivienda).

As for the size of the Panamanian middle class, an article in Martesfinanciero.com indicates it is "32% of the total population, which according to the census of 2010 amounts to 1,056,000 inhabitants."

Source: martesfinanciero.com

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