It is my view that it is in times of crisis that people’s true character comes out. Latin America, marked by sarcasm and pessimism, has one of the worst predictions of global growth: 1.5% drop in economic activity in Latin America. In sharp contrast, a country of the region expects solid growth of 3 to 5%: the Republic of Panama. Projections of Hector Alexander, Minister of Economy and Finance, even reaching a GDP forecast of 7.5%. Years ago in Panama has grown to 9.2% (2008), 11.2% (2007) and 8.7% (2006). This year, growth will be due to financial activity, work on the Panama Canal and property construction. According to , adviser financial service, banking “has emerged relatively unscathed from the global critical situation.” In the Panama Canal, the government reported a drop in traffic of 12.9%.
This reduction in traffic is mainly due to “the reduction in growth rate allotted to the relative impact of the financial and economic crisis in the U.S., Panama’s main trading partner and number one customer of the Canal “(El Financiero, 2009). In response, Panama tolls increased 11.3%, which get to keep the revenues from the canal. The expansion of the canal will cost U.S. $ 5,250 million and will last 10 years, thus ensuring public investment and an influx of jobs. Panama also received funding from two thousand 300 million dollars from several international organizations (the most important being the World Bank). The only thing that has declined is the private construction (by 28% compared to last year).
Other investment plans include the construction of a refinery and an increase in investments in the hospitality industry and electric. The government is also doing its part to taxation. For next year is expected to lower fiscal deficit to 1.0 percent, which the government would meet its target. It should be noted that in the last five years has had a negative balance of 5.0 percent. Panama’s public debt will reach 10 000 to $ 400 million, which is marked reduction of 5% against 2008 and almost 30% compared to 2004. What do all these numbers? In short, mean that Panama is an incredible living reality: there is no recession, only a slowdown. And a slowdown that will keep on pessimistic cases, above 3%. With this, Panama began to establish itself as a stable and prosperous economy, and is a high probability that it will become economic hub in the region.