Panama is fast becoming one of Latin America's fastest growing economies. The country has managed to combat poverty furiously, giving a rise to the middle class.

In a report with World Bank, the country has made significant strides in reducing poverty. Panama has made significant progress in fighting poverty during the past years. In the years between 2007 and 2012, which was a period that included the global financial crisis and recession, Panama managed to curb poverty from 39.9 percent to 26.2 percent. Extreme poverty was also reduced from 15.6 percent to 11.3 percent. Given these numbers, an additional 150,000 Panamanians overcame extreme poverty and nearly half a million Panamanians managed to get out of poverty during that time period as welll.

The Daily Maverick added that Panama boasts of a smokin' economy. The country has enjoyed the title of ranking number 1 in the list of rapidly growing Latin American economies this year. The report added that despite the hardships and interference it has experienced in the past, Panama has indeed prospered. The country enjoys a dollar based economy, and has built a strong presence in investor security. The country's economy has been growing at an average of over 7% between 2001 and 2014, which is nearly double the regional average in Latin America. Financial analysts are predicting that Panama's economy will ideally increase at more than 6% this year.

The country still has a lot of challenges ahead, however, despite the massive strides in fighting poverty. Poverty in Panama is considered to be on a rural and indigenous scale. In urban areas, extreme poverty is below 4 percent, while extreme poverty in rural areas is at 27 percent.

In just five short years, nearly half-a-million citizens have already gotten out of poverty by way of rapid economic growth. There has also been a reported decline in inequality. Former president, Nicolas Barletta, once said that, "If we do the right thing, Panama's potential is to grow at six percent for the foreseeable future." 

Panama has managed to follow a tried and successful formula in helping the country fight poverty. It takes more than just geography and doing the right thing. It is the result of meticulous planning, policy and investing in people's competitiveness. 

President Juan Carlos Varela is running an anti-corruption platform and this helped restore the country's credibility as well as improved the efficiency of the Panama government. President Varela's administration is also committed to upgrading the quality of life in Panama by way of better access to services, as well as expanding economic opportunities for the poor.