Panama's Economy Gets Good News

 
2,378Views 0Comments Posted 11/04/2024

If you are looking for investments internationally, Panama is becoming a focal point for many groups and individuals.  William Maloney, chief economist of the World Bank for Latin America and the Caribbean, said that everything indicates that Panama's economy will grow 2.5% this year despite the loss of income from mining and by 2025 it is estimated that it will reach rate of 3.5%.  He also specified that by 2026 the perspective is that the country's gross domestic product (GDP) will grow between 4% and 4.5%.  “Obviously the closure of the copper mine has had an impact on the country's growth and fiscal positioning and that is part of what led to the loss of the rating by Fitch,” Maloney mentioned.  He argued that Panama must strengthen its fiscal position and find other sources of growth in the absence of mining income.  “There is an effort to be more aggressive in collecting taxes and they are going to have to look for other sources of income,” he noted.  The expected growth for 2025 of 3.5% is subject to the country maintaining its attractiveness as a foreign investment destination. 

 

With the May 5  elections to happen soon, and with an excited roster of Presidential candidates bursting at the seams to get into power and get things moving again, the balance of 2024 and 2025 look to be great years for Panama.  The Panama Canal is expecting a lot of rain and moving from 27 ships a day to 36, the Panama banks are happy, and new banks are moving into Panama from other countries.  The EFG bank from Switzerland is now in Panama.  Their target audience is high net worth clients both in Panama and other countries in the region.  Panama continues to be the focus of interest of Spanish investors.  76% of Spanish companies will increase their investments in Latin America in 2024 and Panama appears among the countries with a presence of 22% of SMEs from Spain. We will be providing you with the latest up to date financial news here so stay tuned.  If you have an interest in joining our new Investment Club at Newsroom Panama, send us a request to put you on our list.  Our email is PanamaNewsroom@gmail.com