Panama’s Growing Pains
May 1, 2011
Rapid growth is still predicted, but the country is encountering speed-bumps along its way. Maintaining fiscal discipline and inflationary pressures will be among the challenges.
by Sean Mattson
Panama is expected to remain near the top of LatAms GDP growth leaders list in 2011 with growth expected to surpass 7%, according to government and independent economist projections. It could be LatAms top GDP performer for the next decade, Banamex economist Sergio Luna said at a recent Council of the Americas conference in Panama City. He says Panama is projected to lead LatAm for the next decade with 6.9% average annual GDP expansion, after leading LatAm over the last decade with 6.1% growth. Panama ended 2010 with a 7.5% expansion, according the governments initial estimate.
FDI is pouring in, with the small Central American nation of 3.4 million people attracting $2.36 billion in 2010, a 33% increase on a year earlier, according to government statistics. The $5.25 billion expansion of the Panama Canal leads an impressive package...
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