The overall cost of living in Panama is about 30% lower than in the United States. You can get a three-course lunch for two with wine for about US$25. (Margaret says she and her husband dine out 6 nights a week...) It's about US$2 in a cab across the city.
A manicure costs around US$7 and you can get a bottle of beer at the store for around 50 cents. A live-in maid will set you back around US$200 a month. Or you can simply get housekeeping services for around US$15-20.
Healthcare is affordable too. An average doctor visit runs around US$35, if you make your appointment the previous day. And the quality of care is excellent. Most medical staff here are trained in the U.S. and the facilities are first rate. Johns Hopkins has just opened an affiliated medical center in Punta Pacifica, one of Panama's residential areas.
Infrastructure development is booming right along with the economy. Panama experienced GDP growth of over 11% last year and Panama is expected to grow another 8-9% this year. And this is not an "inflation-based" economy like so many others.