The bank Bank of America Merrill Lynch estimates that Panama’s economic growth over the next year will be 3%, a rate below the 3.5% predicted for this year and clashes with a Moodys’ report.
The bank has lowered its economic outlook for Panama, both in 2019 and 2020 and describes this year, as "disappointing" in almost all economic metrics.
A recovery of the economy had been expected after a 3.7% growth in 2018, the lowest since the international financial crisis of 2009.
The bank also refers to a deterioration in the fiscal balance, a situation that, in its opinion, represents a ratings risk The analysis does not match that made by Moodys which ratified Panama's rating and stable outlook.
Panama has been under the blackout after the Panama papers. Banks are very strict and flow of money from overseas is slowed. Real state is overbuilt for expat and is not selling. Panama has no major industry. World economy is slowing down. Panama has to do more to get money in as tax haven status is no more valid
The big problem is that inn the flush of a lot of people and businesses (and drug and laundry money coming in Panama has hugely overbuilt. - commercial and residential. And the world economy has declined, so there is not as much money out there that needs laundering through high rises. And US citizens who were moving here in droves has slacked off. It all spells a sagging economy.
Moody's is a much more accurate depiction of the economy and future of Panama. And a note: Anyone in their right mind, and having any knowledge of Panama, would never consider a farm on a mountaintop in Colón. If that is your idea of retirement, you unfortunately missed the mark.
I believe the drop will be lower. A lot of retirees move here, then they leave here. We have been here 2 years and already we have had to replace a refrigerator, hoy water heater, and BATERÍAS MUCHO! I am a housewife and I do not want to spend my husband's retirement money buying the same thing I bought last year. We think all the crappy products are shipped to Panamá. It makes you want to move. And speaking of, go to panamarealtors.com to view a fabulous farm on a mountaintop in Colón. It's for sale.😁
Three percent is lower growth than during the Varella years, when people considered the economy stagnant. If this prediction is accurate, then hopes for a Nito revitalization will be disappointed.