Panama growth leads Latin America

PANAMA CONTINUES to lead the pack in Latin America according to the International Monetary Fund (IMF) with its economy projected to rise 6% this year.

Elsewhere there is a marked slowdown deteriorating confidence in Latin America and the IMF has lowered the forecast 3% Colombia, Peru and Chile 3.2% 2.5%, while Argentina rose slightly to 0.1% growth this year. Venezuela, which recorded the biggest contraction in the region is projected to rise 7% this year with a forecast of inflation of over 100% in 2015.
Alejandro Werner, director of Western Hemisphere Department, “Latin America faces years of slow growth ahead,” by 0.5% this year and 1.7% next.
“The main risk is a major slowdown in China as well as the possible effects of the start of monetary normalization of the US and of low confidence, which may continue to weigh on the recovery in consumption and investment” Werner said at a press conference.
The economic situation falls between two forces: on the one hand the dynamic activity in North and Central America, associated with the US recovery, and secondly, the weakness of the South American countries affected by falling prices of raw materials.
In the case of Argentina, the only regional economy for which the IMF increased its forecast from -0.3% in April to the current 0.1%, Werner said the situation remained “very delicate” with balance of payments and private investment levels “very weak”.
The official also said the effects of the recent agreement between Iran and the international powers to lift economic sanctions on Tehran and is expected to open the tap for Iranian oil production, which will expand the global supply “in the vicinity of between 500,000 barrels and one million barrels “in the medium term.