Mercer’s annual Quality of Living Survey, a respected benchmark that evaluates cities based on a range of factors, offers insights into Panama’s standing. Using New York City as a baseline score of 100, the survey assesses cities across 39 criteria. These encompass social, economic, and political stability, crime rates, law enforcement effectiveness, banking regulations, currency controls, freedom of speech, access to quality medical care, educational opportunities, transportation infrastructure, public services, and even climate.
In the 2007 survey, Zurich topped the list with a score of 108.1, closely followed by Geneva. While Baghdad ranked lowest, Panama achieved a score of 82.9, placing it 92nd overall. While this suggests that Mercer considers 91 other cities as offering a superior quality of life, it’s crucial to examine the context and consider Panama’s unique strengths.
For comparison, Budapest scored 90.2 (74th place), Detroit achieved 96.1 (64th place), and Pittsburgh earned 99.7 (52nd place). The placement of Los Angeles (98.3, 55th place) is especially surprising, given its high crime rates, smog, exorbitant cost of living, traffic congestion, and struggling public school system. This raises questions about Mercer’s methodology and the weight assigned to various factors.
Regarding the cost of living, Panama ranked 124th out of 143 cities in 2007. This relatively low ranking is based on over 200 factors, including housing, food, medical care, and transportation costs. San Paulo and Rio de Janeiro were the most expensive cities in Latin America at the time.
Panama is currently experiencing a construction boom, with many new residential properties still under development. Because Mercer’s survey relies on completed sales data and not deposits, the impact of these new, potentially more expensive properties, isn’t yet fully reflected in the rankings. Once these projects receive occupancy certificates, Panama’s cost of living index is likely to rise, as housing constitutes a significant portion of household expenses.