Panama’s economy forecast to grow 5 percent this year 
Panama's economy will grow five percent this year says, the Economic Commission for Latin America and the Caribbean (ECLAC).
The commission presented its "Economic Survey of Latin America and Panama’s in Santiago, Chile, on Wednesday July 21. Panama's growth predictionis higher than most countries in the region, with the exception of the Dominican Republic which is forecast to grow by 6 percent, but is lower that the forecast for the whole of Latin America. The Dominican Republic has a stronger tourism industry, while Panama’s growth will be largely fueled by major projects like the Canal expansion, mining development and public infrastructures.
Alicia Bárcena, Executive Secretary of ECLAC, said the Latin American economy will grow 5.2 percent this year, more than expected and after falling 1.9 points in 2009 as a result of the global economic crisis.
According to forecasts by ECLAC, the highest growth rates in 2010 are seen in South America, led by the largest economy, Brazil, will grow 7.6 percent, followed by Uruguay (7.0 percent), Paraguay (7.0 percent) Argentina (6.8 percent) and Peru (6.7 percent).
Then will come the Dominican Republic (6.0 percent), Panama (5.0 percent), Bolivia (4.5 percent), Chile (4.3 percent) and Mexico (4.1 percent). Meanwhile, Colombia will grow 3.7 percent, Ecuador 2.5 percent, Honduras, Nicaragua and Guatemala 2.0 percent, while Venezuela will show a decline of 3.0 percent.
However, the most difficult case, as reported by the committee, is that of Haiti, whose economy will fall by 8.5 percent because of the earthquake last January caused 300 000 deaths and 1.5 million homeless.
The study noted that among the elements that contributed to economic growth include international trade and investment, the recovery of exports and increasing remittances.
Although the recovery has been relatively rapid, ECLAC reported on its website that "there are still questions and uncertainties about global economic developments which may obscure the regional picture in the medium term."
The crisis of some European economies may have a negative impact on volumes and prices for regional exports, Bárcena said. and given this scenario, called on countries to maintain public policies aimed at protecting the most vulnerable in the context of a broader strategy. This strategy should encompass both the social and macroeconomic policies and production policies.
