“First, happy holidays to all there at Live and Invest Overseas from Sarasota, Florida.
“Second, I have a question related to our possible relocation to Panama.
“As a lad of 70 years of age, I’ve witnessed many upheavals, juntas, and military takeovers in Central and South American countries and all seem to the detriment of foreign residents. Panama certainly didn’t avoid the same problem in the past. What leads you to believe that the future of Panama is safe and stable for those retiring there now?”
–Lee F., United States
Nothing is guaranteed in this world, and I know what the future holds no better than anyone else.
That said, Panama is stable and likely will continue stable as it has a strong economy and an expanding middle class. Thanks to revenues from this country’s very efficient and profitable management of the Panama Canal, Panama can afford to continue the big infrastructure projects it is becoming known for. The Panamanians seem intent to earn their place in the First World.
The reason most Latin American countries suffer instability is because the masses living in them are generally poor. This is the case in Venezuela, Bolivia, and Ecuador, for example.
Uruguay, on the other hand, is stable…and has a large middle class.
Argentina is a study in instability…because it has both a big population of poor and also because it has a tradition of bad leadership.
Again, though, the real point is that nothing is guaranteed…and nowhere is immune from upheaval and crisis (including the United States), which is why diversification and flexibility are key as you map out your retire overseas plan.