Izhakoff: Panama to Benefit From Dynamic LatAm Economy
March 18, 14
 |
Latin America is a region that is enjoying unprecedented economic growth, which is sustained by political and social stability in most, if not all of the region.
It also is a market of untapped potential. The Latin American economy is forecast to grow at an annual rate of 4.6 percent from 2013 to 2030, second only to the developing countries of Asia. In contrast, average growth in GDP for the United States over the period is 3 percent, Japan at 0.6 percent and the European Union at 2.4 percent.
According to Americas Market Intelligence, by 2020 Latin America will have a combined GDP of $10.7 trillion, equivalent to 9 percent of global GDP, and double that of 2010.
But as many of my colleagues in the international diamond and jewelry industry will confirm, it is a market that operates largely under the radar. And it is not simply a case that we are not aware. Because if Latin America was meeting its true potential, the international diamond, colored gemstone and jewelry industries would certainly have sat up and taken notice before today.
To no small degree, the gemstone and jewelry sector in Latin America has underperformed, because it has lacked the trading infrastructure that is standard in the other major markets. To put it simply, there has been no place for us to hang our hat.
But that, as we will find out today, is set to change.
On a construction site just between Panama City and the international airport, work is underway on what will be the first dedicated diamond, colored gemstone and jewelry trading complex in all of Latin America — the Panama Gem & Jewelry Center. Anchored by the Panama Diamond Exchange, the only WFDB-affiliated diamond bourse in the entire region, it is being specifically designed to provide the infrastructure that has not existed until today.
Its establishment should have a fundamental effect, not only on Panama, but on the Latin American, and international industries, as well.