Panama raises growth projection for 2010
The government has upped its estimates for Panama’s economic growth to around 5 per cent for 2010.
Six months ago, when newly elected and preparing it’s first budget, the government forecast a growth of 3.5 percent.
“The second half of the year has sent positive signals the Minister of Economy and Finance, Alberto Vallarino.
He said that the base year for calculations by the Directorate of Statistics and Census had been 1996. Since then the Panamanian economy has changed a lot, so it was proposed to build on 2008 to "achieve a more correct measurement....
"In 1966 we were not owners of the Canal, the ports were still in draft form, and call centers had not been energized” said the Minister.
The old formula he added tended to favor sectors that today have little impact on the economy, "so that in the reviews, growth at year end was bigger than forecast.”
He said that the directorate of Social and Economic Analysis of the Economy Ministry indicated that the growth of gross domestic product (GDP) this year will be close to 4 percent
Vallarino said that Panama is growing when "most of the world's economies are closing this year with an economic slowdown" and said that in addition, the tax bill "will be better than we anticipated in mid - 2009 ".
"The deficit we had projected to be about 1.5 percent of GDP, when the fiscal responsibility law allows up to 2.5 percent" of GDP, he said.
This will prevent that Panama creating further indebtedness, as the economic impact of the Canal expansion has enabled increased employment and investment in logistics and maritime sectors.
Vallarino claimed that Panama has evaded the world crisis. "Against all odds, despite being a very open economy and so dependent on international services, Panama has shown great resistance to the virus that has infected all economies in the world…
"The expansion project has maintained a degree of optimism in the investment community both internationally and locally, but the real effects of the physical work will be felt in 2010, 2011, 2012 and beyond.“
