Known for its 48-mile canal connecting the Pacific Ocean with the Atlantic Ocean, Panama receives over a million visitors each year. Panama’s beautiful beaches, ecotourism and international festivals can seduce many tourists into making Panama their home rather than a vacation spot. For those who entertain the thought of Panama as their permanent home, it is important to know the cost of living in Panama as well as what it’s like to live there.

Panama has a relatively low cost of living, which can range from $1,120 to $8,000 per month for two people, while the average middle-class salary in Panama is estimated at $1,200 per month. These costs fluctuate depending on what region or city you are going to be living in Panama.

The unemployment rate in Panama is 4.5%. The labor force in Panama is made up of 1.78 million people; a large majority of the population works in services while the rest works in agriculture and industry. The standard workweek in Panama is 48 hours, which is 8 hours more than a full-time work week here in the United States.

While the cost of living in Panama is low, migrants should know much more about Panama before making the decision to move there. For example, while Panama’s crime rate compared to other Central American countries is relatively low; however, it is still high compared to most of the United States. Panama, Colon, Herrera and Chiriqui are among the provinces with the largest cities which had the highest overall crime rate. There has been a pattern of decreasing crime in Panama. Homicide, armed robberies and petty theft rates have all continuously fallen.

Moving from the United States to Panama may come as a huge shock when you realize that Panama’s population is only four million. Approximately one-third of Panama’s population lives in Panama City or the immediate area around it. Panama City is packed with nightlife, shopping areas. The rest of the areas in Panama provide a quiet and relaxed life which provides quicker access to Panama’s nature.

There are many things to consider and know about Panama before turning your yearly vacation into a forever home. While Panama may be very appealing to the eye and its beautiful attractions may coerce someone into a quick move, the cost of living in Panama may be a deciding factor.

– Danyel Harrigan

Photo: Flickr