The document summarizes economic studies showing why investing in the Azuero region of Panama is worthwhile. It finds that the population and GDP of Azuero are growing steadily. Several key economic indicators such as GDP per capita, number of university degrees earned, and numbers of new businesses starting up each year are higher in Azuero than comparable regions. The tourism, construction, and service sectors in particular are experiencing economic dynamism and expansion in Azuero.

1. SOCIAL-ECONOMIC STUDY
WHY INVEST IN AZUERO?
* Based on the study presented by Economist María Pedreschi *
I. Population of Azuero vs. Comparable Populations:
Table. Total population of some provinces in the Republic of Panama.
Province 1,980 1,990 2,000 2,010
Herrera 81,963 93,681 102,465 109,955
Los Santos 70,261 76,947 83,495 89,592
Azuero 152,224 170,628 185,960 199,547
Coclé 140,903 173,190 202,461 233,708
Veraguas 173,245 198,495 209,076 226,991
Chiriqui 287,350 322,130 368,790 416,873
Panama 809,100 1,072,127 1,388,357 1,713,070
Source: Based on the 2000 and 2010 Population and Housing Censuses, INEC.
 The population of Azuero grew by 7.31% in 10 years (from 2000 to 2010).
 It is important to note the migration of foreigners to the area: Altogether,
between 2005-2010, 12,067 people have migrated to the Azuero región,
representing 6.05% of the population of Azuero in 2010.
 The percentage of people having a university degree or some level of
university education is 13.7%, which is similar to the percentage registered
in Cocle and Chiriqui (13.7% and 13.5%), above that of Veraguas (11.5%)
and below that of the Province of Panama (21.4%).
 Almost a third (31.4%) of the population has a high school diploma or some
level of high school education, which places Azuero above Veraguas and
Chiriqui (28.9%) and almost on par with Cocle (32.7%), but below the
province of Panama (44.2%).

2. Table. Universities present in the Azuero Region: 2012.
University Herrera Los Santos Azuero
University of
Panama
1 1 2
Technological
University
0 1 1
UDELAS 0 1 1
Latina University 1 0 1
USMA 0 1 1
Columbus 1 0 1
Isthmus University 1 1 2
UMECIT 1 0 1
ISAE 1 0 1
UNIEDPA 1 0 1
Total 8 4 12
Source: Created by the authors.
II. Economic Dynamics
2.1. Gross Domestic Product of the Province of Herrera
2.1.1. Estimate of GDP Value and Composition by Percentage
 Important sectors in the generation of GDP for both provinces include
agricultural activities ((37% and 20%), transportation, storage and
communications (12%), and the government (18% and 14%). The fishing
industry is increasing in importance in Herrera.
 Azuero’s GDP is slightly higher than those of Cocle and Veraguas and
slightly lower with respect to Chiriqui.
 The provinces of Herrera and Los Santos have the highest GDP per
capita after the province of Panama, being higher even than that of
Chiriqui. This indicator has been growing in part due to the economic
dynamics reported for this region and in part because of the slow growth
rate of its population.
 The comparative behavior of the per-capita GDP of Azuero with respect to
the other provinces can also be taken as an indicator of the higher
standard of living of the population of this Region with respect to other
regions, excluding the province of Panama.

3. Table. Gross Domestic Product at market price in some Provinces of the Republic of
Panama, in millions of 1996 Balboas. Years: 2003-2011.
Years Republic of
Panama
Azuero Cocle Chiriqui Veraguas Panama
2003 12,182.80 442.72 341.12 950.26 316.75 8186.84
2004 13,103.80 470.86 353.80 982.79 340.70 8792.65
2005 14,041.20 519.50 379.11 1039.05 365.07 9379.52
2006 15,238.60 563.86 411.44 1051.46 396.20 10133.67
2007 17,084.40 597.95 444.19 1178.82 444.19 11463.63
2008 18,812.90 684.83 507.95 1373.34 489.14 12593.36
2009 19,538.40 711.23 527.54 1426.30 508.00 13079.00
2010 21,024.80 765.31 567.67 1534.81 546.64 14074.00
2011 23,253.60 846.46 627.85 1697.51 604.59 15565.96
Source: Based on data from the General Comptroller of the Republic, INEC, www.contraloria.gob.pa For 2003 to 2007, the estimate is based on the
composition of GDP by percentage for each province as a part of the total; the 2008-2011 estimate assumes the average composition by percentage for
the 2003-2007 period.

4. Table. Estimated Gross Domestic Product per capita for some provinces of the Republic of Panama: 2003-2010
Year Azuero Cocle Veraguas Chiriqui Panama
2003 2,249 1,559 1,431 2,402 5,300
2004 2,378 1,597 1,532 2,455 5,562
2005 2,610 1,690 1,635 2,566 5,800
2006 2,819 1,812 1,762 2,568 6,130
2007 2,975 1,933 1,975 2,847 6,786
2008 3,392 2,184 2,168 3,281 7,299
2009 3,508 2,243 2,245 3,374 7,427
2010 3,753 2,387 2,410 3,596 7,833
Source: Based on data from the General Comptroller of the Republic, INEC, www.contraloria.gob.pa For 2003 to 2007, the estimate is based on the
composition of GDP by percentage for each province as a part of the total; the 2008-2011 estimate assumes the average composition by percentage
for the 2003-2007 period. Estimated population for each province as of July 1.

5. Table. Average composition (2009-2007) of GDP by percentage at market price for the Provinces
of Herrera, Los Santos and the Azuero Region, by Category of Economic Activity, at 1996 prices
Source: Based on data from the General Comptroller of the Republic, INEC, www.contraloria.gob.pa
Category of Economic Activity Herrera
%
Los Santos
%
Azuero
%
Agriculture, cattle farming and forestry 19.52 36.82 28.17
Fishing 13.20 4.2 8.7
Exploitation of Mines and Quarries 0.48 0.5 0.49
Manufacturing Industries 4.34 1.06 2.7
Supply of Electricity, Gas and Water 2.30 1.6 1.95
Construction 1.72 0.98 1.35
Wholesale and retail commerce, repair of automobiles, motorcycles,
personal effects and household goods. 9.62 5.64 7.63
Hotels y restaurants 2.24 1.62 1.93
Transportation, storage and communications 13.00 11.78 12.39
Financial Intermediation 5.66 4.72 5.19
Real estate, entrepreneurial and rental activities 2.04 2.04 2.04
Private education 0.70 0.22 0.46
Social services and private health services 2.30 0.76 1.53
Ohter community, social and personal service activities. 3.04 4.28 3.66
Less: Financial intermediation services 1.80 1.46 1.63
General government 14.06 17.56 15.81
Homes with domestic service 1.44 1.48 1.46
Taxes on the net products of subsidies 6.16 6.2 6.18
Gross Domestic Product at market price 100.00 100.00 100.00

6. 2.2. Dynamic economic activities
2.2.1. Commerce and Services
 The decision by large national companies to establish branches in the
District of Chitre is an indicator of the economic drive that distinguishes the
Azuero region, and of the perception by investors of Chitre as the center of
this development pole.
 A large number of the companies with operations at the national level that
have established branches in Chitre have done so within the past 10 years
(around 61) and in the service (53%) and commercial (47%) sectors.
.
Table: Companies with a national (or regional) presence that have
established operations in Azuero in the last 10 years.
COMPANY ACTIVITY
1 Cochez y Cía Commerce – Hardware, construction materials
2 Spiegel Commerce – Hardware and household goods
3 Doit Center Commerce – Hardware and household goods
4 Super Pisos Commerce – Construction materials
5 Casa Goly Commerce – Hardware, construction materials
6 COMASA Commerce – Hardware, construction materials
7 Alumicentro de Panamá Commerce- Aluminum and glass construction materials
8 Bac Credomatic- Panamá Service – Financial Intermediation
9 BCT Banco Service – Financial Intermediation
10 Banco Azteca Service – Financial Intermediation
11 Banesco Service – Financial Intermediation
12 Multibank Service – Financial Intermediation
13 Banco Delta Service – Financial Intermediation
14 Credicorp Bank Service – Financial Intermediation
15 Banco Citi Service – Financial Intermediation
16 Banvivienda Service – Financial Intermediation
17 Seguros Mapfre Service – Financial Intermediation
18 Aseguradora Ancón Service – Financial Intermediation
19 bba Seguros Service – Financial Intermediation
20 Farmacias Arrocha Commerce – Medicines and various goods
21 Farmacia El Javillo Commerce – Medicines
22 Farmacias Metro Commerce – Medicines and various goods
23 Óptica Sosa y Arango Service – Visual health
24 Óptica López Service – Visual health
25 Óptica Metro Service – Visual health
26 Madison Commerce - Department store
27 Lumicentro Commerce - Lighting products

7. 28 McDonald (2) Service – Fast food restaurant
29 Dóminos Pizza Service- Restaurant
30 Kentucky Service – Fast food restaurant
31 Pio Pio Service – Fast food restaurant
32 Subway Service – Franchise restaurant
33 La Estancia Service – Franchise restaurant
34 Hopsa Commerce – Sale of metal products
35 Pesqueros Commerce – Sale of fishing goods
36 July, Sport Center Commerce – Sale of sporting goods
37 DDP (3 tiendas) Commerce – Clothing and complementary goods
38 Bbb Commerce – Shoe store
39 Payless Commerce – Shoe store
40 Rodelag Commerce – Sale of household goods
41 Aire Sí Service – Repair and maintenance of refrigeration
systems
42 Friolín, S. A. Service – Repair and maintenance of refrigeration
systems
43 Tambor Commerce and Service – Sale of automobile goods and
auto service shop
44 Budget Service – Car rental
45 Arrendadora Económica Service – Car rental
46 Auto Centro Commerce and Service – Sale of automobile goods and
auto service shop
47 Viajes Marbella Service – Tourism
48 Supermercado El Rey Commerce – Supermarket
49 Super 99 Commerce – Supermarket
50 Universidad del Istmo Service – Higher Education
51 UDELAS Service – Higher Education
52 ISAE universidad Service – Higher Education
53 UMECIT Service – Higher Education
54 Servi Entregas Service – Delivery service
55 Uno Express Service – Delivery service
56 Casa Gala Commerce – Furniture and household goods
57 Elektra Commerce – Furniture and household goods
58 Bombasa Commerce – Products for water storage
59 Riegos de Chiriquí Service – Installation of irrigation systems
60 Fertitec Commerce – Fertilizers and agricultural technology
61 ERA Commerce – Kitchen equipment and related goods
Source: Created by the authors

8. 2.2.2. Construction
 An important indicator for measuring the dynamics of the construction sector
relates to the number of construction permits issued.
Table. Number of Private Constructions in Herrera and Los Santos: 2005-2011.
Year Herrera Rate of
Growth
(%)
Los
Santos
Rate of
Growth (%)
Azuero Rate of
Growth
(%)
2005 396 ---- 307 ----- 703 ----
2006 430 9 398 30 828 18
2007 397 -8 469 18 866 5
2008 390 -2 357 -24 747 -14
2009 455 17 332 -7 787 5
2010 528 16 462 39 890 26
2011 397 (1)
(1) January to September of 2011 for Chitre only
Source: Based on data from the General Comptroller of the Republic, INEC, Industry.
www.contraloria.gob.pa
Table. Value of Private Constructions in the Provinces of Herrera and Los Santos.
Years: 2005-2011.
Herrera Los Santos Azuero
Year
(B/) Rate of
Growth
(%)
(B/) Rate of
Growth
(%)
(B/) Rate of
Growth
(%)
2005 6,752,728 ---- 6,714,810 ---- 13,467,538 ----
2006 7,055,829 4 7,306,469 9 14,362,298 7
2007 6,315,279 -10 12,850,902 76 19,166,181 33
2008 11,656,892 85 10,631,043 -17 22,287,935 16
2009 27,184,733 133 9,899,378 -7 37,084,111 66
2010 20,693,023 -24 12,347,982 25 33,041,005 -11
(2) January to September of 2011 for Chitre only
Source: Based on data from the General Comptroller of the Republic, INEC, Industry.
www.contraloria.gob.pa

9. 2.2.3 Tourism
 The tourism potential of Azuero is demonstrated by the fact that Region No.
4 of the Master Plan for Sustainable Tourism in Panama 2007-2020
includes three priority tourism destinations and products that involve the
Azuero Region:
a- Destination: Ocu-Santa Maria-Parita-Chitre. Priority Product:
Agrotourism
b- Destination: Las Tablas–Santo Domingo–La Palma-Guarare.
Priority Product: Culture and Community
c- Destination: Pedasi – Tonosi. Priority Product: Sport fishing
2.3 Evolution of new businesses
 An indicator of sectoral economic dynamics is the growing number of new
notices of operation and capital invested in new businesses:
Table. Number of Notices of Operation of Businesses per year, in some provinces
and in the Republic of Panama. Years: 2008-2012.
Provinces 2008 2009 2010 2011 2012 (1)
Herrera 465 542 716 800 897
Los Santos 352 412 552 540 756
Azuero 817 954 1268 1340 1653
Cocle 626 891 1,081 1,244 1,404
Chiriqui 1,798 2,145 2,687 2,974 3,250
Veraguas 630 827 1,150 1,244 1,275
Panama 12,555 13,283 16,525 17,813 20,184
Total for the Republic 17,918 20,613 25,950 27,467
(1) Data for January to August 31 of 2012 corresponds to real data; data for September to
December 31 incorporates estimated data.
Source: Created with information from the database of www.panamaemprende.gob.pa
III. Occupations, Salaries, Incomes and Expenses.
3.1. Condition of the Population with regard to Economic Activity
 The Azuero region reports 51% of its population over the age of 10 as being
economically active, meaning they are available to offer their labor, which is
greater than the percentage of neighboring provinces.
 The unemployment level is low (4%).

10. 3.3 Salaries
 The Azuero Region has a higher percentage of salaried workers with
incomes greater than $1000 than Coclé, Veraguas and Chiriquí.
Table. Salaries declared by individuals in some provinces of the Republic of
Panama, by salary range: 2010.
Province Salary ranges (in Balboas)
Less than 125 125-399 400-999 1000 and more Median
Persons % Persons % Persons % Persons %
Azuero 121890 62.5 28130 20.5 19454 13.6 3902 3.3 282.70
Cocle 158720 70.1 26854 16.7 18592 11.0 2977 2.1 301.10
Veraguas 163637 73.1 22756 14.2 16697 10.6 3085 2.2 319.00
Chiriqui 262511 64.5 52461 18.9 40267 13.4 7574 3.2 302.50
Panama 851586 52.0 182600 15.0 293647 24.0 71455 8.0 473.20
Source: Based on information from the Data Base of the 2010 Population and Housing Census.
General Comptroller of the Republic, INEC. www.contraloría.gob.pa
Table. Household income in some provinces of the Republic of Panama, by income
range: 2010.
Province Income ranges (in Balboas)
Less than 125 125-399 400-999 1000 and more Median
Households % Households % Households % Households %
Azuero 11946 19.4 18732 30.5 19497 31.7 11287 18.4 391.5
Cocle 12497 22.2 16548 29.4 17528 31.1 9719 17.3 379.0
Veraguas 17080 28.4 18108 30.1 15138 25.2 9806 16.3 300.0
Chiriqui 5741 6.8 18108 21.4 37888 44.8 22888 27.0 426.0
Panama 33321 7.1 68798 14.7 174126 37.3 190741 40.8 804.0
Source: Based on information from the Data Base of the 2010 Population and Housing Census.
General Comptroller of the Republic, INEC. www.contraloría.gob.pa
 In Azuero, the percentage of households that receive monthly average
incomes of 1000 Balboas or more (18.4%) is greater than in the provinces of
Cocle and Veraguas (17.3% and 16.3%).
3.4 Some standard of living indicators
 The inhabitants of the Azuero Region have access to some activities that
reflect a certain standard of living with regard to modern facilities and
comfort.

11.  Azuero stands out in comparison with Cocle and Veraguas with respect to
the percentage of homes that have a computer, Internet connection, cell
phone and air conditioning.
 A large percentage of households (45%) in the Azuero region have an
automobile, which is greater even than the province of Panama (32%).
Table: Percentage of households that have certain assets, by province and
by asset: 2010.
Asset Percentage of homes having particular assets
Azuero Cocle Veraguas Chiriqui Panama
Computer 20 15 16 22 37
Internet
Connection
58 57 52 63 78
Cable TV
Connection
15 15 14 19 32
Cell Phone 81 77 71 86 91
Automobile 45 20 19 28 39
Air
Conditioning
13 6 7 22 21
Source: Based on information from the Data Base of the 2010 Population and Housing Census.
General Comptroller of the Republic, INEC. www.contraloría.gob.pa
 An indicator which is used quite frequently to achieve an approximate idea
of the standard of living of a population is the Human Development Index.
 The levels of this index both for Herrera and Los Santos reveal that the
Azuero region is among the highest at the national level.

12. Graph. Human Development Index in some provinces of the Republic of
Panama: 2007.
Source: Human Development Atlas, UNDP, 2010
 Another important indicator is related to the life expectancy of the
population. In this regard, the population of Azuero approaches the life
expectancy of the inhabitants of the province of Panama.
Graph: Life expectancy in some provinces of the Republic of Panama: 2007.
Source: Human Development Atlas, UNDP, 2010
0.777
0.751
0.731
0.738
0.69
0.677
Panamá
Los Santos
Herrera
Chiriquí
Coclé
Veraguas
Human Development Index 2007
77.2
76.6 76.6
76.2
75.1
73.8
Panamá Los Santos Herrera Chiriquí Coclé Veraguas
Life Expectancy 2007

13. IV. Why invest in Azuero?
An analysis of the data related to the main variables affecting the economic and
social dynamics of the Azuero Region - comprised of the provinces of Herrera and
Los Santos – enable us to identify the most relevant factors which help to answer
the question “Why invest in Azuero?”. These factors are:
Intangible Factors Tangible Factors
**The slogan “In Chitre, no one is a
stranger” is an intangible factor that
has been successful over time, as the
area is perceived as a place where
strangers are treated kindly, and as a
good place to live and do business.
Most Panamanians identify Chitre as
being representative of the Azuero
Region.
Economic:
 Considerable increase in investment in
public and private construction projects
 Increase in incomes with the inclusion of
Chitre in Salary Zone 1
 Growing purchasing power which makes
the offer of high quality products and
services viable.
 Increase in certain activities which
promote development, such as
construction, banking services, tourism
and commerce
 Growth in employment
 Significant increase in consumption
**The study carried out by the
Gorgas Memorial Institute identifies
Chitre as “The best city to live in”
because a high percentage of its
inhabitants come fairly close to the
country’s potential standard of
living. This has been a positive
factor both for the attraction of
foreign investments as well as
migration towards the entire Azuero
region.
Population:
 The increase in migration of foreigners
to Chitre and Pedasi attracts businesses
interested in catering to these
consumers with high purchasing power.
 The migration of Panamanians of all
ages, but above all retirees who are
looking for a place to live peaceably and
safely in a city that has everything
necessary for a comfortable lifestyle.
 High reported levels for certain standard
of living indicators such as the human
development index and the life
expectancy of its inhabitants.
 Young people have not emigrated away
from the area.
 A human resource with a good
educational level, well prepared and
geared towards service.

14. ** The slogan “Chitre, the city that
grows” reflects the drive of its people to
invest and create advantageous
conditions for others to invest, favoring
the attraction of foreign capital.
Geographic Position:
 The location of Chitre as the gateway to
the Azuero región and a mandatory
stopping place for tourists and other
temporary visitors.
 The widening of the National Highway
will shorten distances and make the
region more attractive for the arrival of
tourists and for logistics and commerce.
 The proximity to other regional markets
makes it possible to take advantage of
them from locations in Chitre or Las
Tablas.
Social and cultural conditions:
 Increase in the middle and upper
classes that demand higher quality
products
 Low levels of crime and violence
 A rich cultural heritage favorable to
tourism and complementary businesses
 Availability of good social infrastructure
(medical centers, high schools,
universities, recreational facilities, etc.
Source: Created by the authors.