Panama inflation rate worries World Economic Forum
Panama's 6 percent inflation rate is worrying the World Economic Forum (WEF).
Prices up, less to spend
The comment appears in the latest edition of the Global Competitiveness Report prepared by the body's analytical arm.
The inflation rate means that Panamanians lost about 6 percent of their purchasing power in the last year. That is, they no longer have $6 to spend for every $ 100 of their consumption capacity.
Notably, says La Prensa the WEF report also noted as relevant "little progress" in the country's institutional framework, drawing attention to the low public confidence ins politicians, low levels of security and one of the lowest scores of independence justice in the region. For the WEF, these elements are natural parts of the economic process, not accessories.
The amount of currency in the economy (currency and demand deposits), an essential factor in the process of inflation, has increased about 20% at the end of last year.
The International Monetary Fund warned in 2011 of the possibility of Panama’s economy overheating.
