Panama Canal Growth and Economic Expansion

As president and CEO of iPoint Capital Partners in Panama City, Hilt Tatum IV closely follows economic trends in Panama. Hilt Tatum IV has served in this position for more than eight years, during which time he has established a presence for the group across Central and South America as well as in Europe, Asia, and the Caribbean.

As the expansion of the Panama canal continues, authorities have begun to speculate that the country's economy may expand by up to 7 percent each year for the coming five years. Experts attribute this growth largely to the influx of trading companies from North America, Europe, and Asia, who see the larger capacity for the canal as an opportunity to establish new trade routes. The newly expanded canal, doubled in capacity, will be able to carry vessels of up to 13,000 twenty-foot equivalent units (TEU's), as compared to its current capacity for 5,000 TEU vessels.

Along with its anticipated availability for larger loads, the expansion of the canal also has already made Panama the fastest-growing economy in Latin America. Thus far, the financial services and real estate sectors have driven much of this growth, but experts anticipate a surge in the logistics industry when the new canal locks become operational in 2016. Construction, mining, and quarrying have expanded by more than 11 percent in the second quarter of 2014, while fishing grew by an unexpectedly high 50 percent. Predictions for late 2014 data and upcoming 2015 activity currently hover around 6.5 percent.