The cost of life in Panama is very, very affordable compared to
other countries able to offer similar quality of life.
After living in Costa Rica for nearly a decade, I'm amazed at
how affordable Panama is comparatively. I can find bottle
beer for $1, have a great sandwich for $2.50, buy electronics at
Hong Kong prices and just about any product you can think of
that comes through the canal is available at great prices.
If you're a consumer, you won't be disappointed in Panama.
Taxi rides around the city are
incredibly affordable. For $2.00 you can get just about
anywhere. Now I don't think Panama is dirt cheap, but the
quality of life per dollar is about as good as any mid-size town
in the U.S., probably better. Real estate prices are
indeed climbing, but everyday life in Panama is very, very
reasonable. Outside the city prices get lower although
access to the same goods and services is obviously more
difficult. Medical costs are a fraction of those in the
U.S. Retirees enjoy numerous discounts on automobiles,
medical services, insurance and simple things like movies.
We'll compile a more detailed
"basket of goods" here soon so that you have a good idea of
Check out this
article from MS Money about cost of living in Panama.