IMF forecasts Panama to grow back at 5% up from 4% in 2018

Economy

After 2018, with projected growth of around 4%, the most moderate in the current decade, projections indicate that the country’s economy will rebound at rates above 5% in the short and medium term.

MEF: Panama is set to return to the FATF gray list
Debt grows $ 2,710 million
Panama’s GDP grew 3.6% through September
This is the estimate of the International Monetary Fund (IMF) , which recently published its conclusions on the annual review of the economy of Panama under Article IV and after the visit to the country.

For 2018, the entity calculated a growth of 4.3% as a result of the slowdown in key sectors, including construction, affected by a one-month strike by workers. The lower dynamism translated into a marginal rise in unemployment to 5.8%, while inflation would remain controlled despite the increase in the price of food and fuel.

In 2019 a recovery of two percentage points is expected, to reach a growth rate of 6.3%.

“It is projected a growth of 4.3% in 2018, a rebound to 6.3% in 2019, supported by the opening of a large mine and the recovery of construction to converge towards its potential of 5.5% in the medium term.”

IMF
The greatest dynamism would be supported by the start of operations of the Colón copper mine and the recovery of construction. With a collective agreement already agreed for the next few years, it is not expected that there will be a similar break in activity to that of 2018. This factor, together with the start of major public infrastructure works, will make a difference with respect to the previous year.

The analysis of the international organization coincides with that of local experts. The president of the National College of Economists, Olmedo Estrada, told this newspaper that 2019 is presented with positive prospects. The Panama Canal, mining, international trade and logistics and the financial center will provide gross domestic product (GDP) with important levels of production to sustain a 5.5% growth, supported by public and private investments.

For its part, the local consultant Indesa also reflects in its projections an acceleration of the economy, although with lower rates of growth: from 3.8% in 2018 it would increase to 5% in 2019.

In terms of public finances, the IMF projects moderate fiscal deficits in line with the provisions of the Fiscal Social Responsibility Law, which, together with economic growth, would lead to a reduction in the ratio between debt and GDP to levels close to 33% in 2023 from 38.3% in 2018.

READ MORE:https://impresa.prensa.com/economia/Panama-retomara-tasa-crecimiento_0_5208229147.html

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Crime
Can you believe the “Panama Papers” case is STILL NOT ADJUDICATED YET? They made a GD movie!

https://www-laestrella-com-pa.translate.goog/panama/se-inicia-juicio-por-el-caso-panama-papers-FK6914052?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc The scandal involving the defunct law firm Mossack & Fonseca was uncovered eight years ago Eight years after the publication of the “Panama Papers” by the International Consortium of Investigative Journalists, which revealed that a Panamanian law firm structured offshore companies to hide money and assets, a trial began …

Economy
PANAMA economic outlook remains stable before expected administation change.

https://www.laestrella.com.pa/economia/moody-s-mantiene-en-baa3-estable-su-perspectiva-para-el-centro-bancario-de-panama-DN6609324 In his opinion, the solid performance of the banks will offset the sharp drop in economic growth, the political noise prior to the presidential elections, as well as the weakening of consumer and business confidence. Moody’s Ratings maintains its outlook for Panama’s banking system at “Baa3 stable”. In his …

Economy
Grade on “5 Year Plan” to come in JUNE of 2025.

Back in 2020 the UNWTO- or “World Tourism Organization” was tasked to put together a “Master Plan” that would bear the fruit of an increase in sustainable tourism projects of ( 50% ). This even took into account the effect of COVID-19 on the Economy. I am aware that there is REAL …