Panama government spending and debt shrink

SPENDING on Panama government projects in the first half of 2015  fell by 44.5 percent compared to the same period of last year, but the reduction  has also led to less debt says the Ministry of Economy and Finance.

In the first six months of 2014, capital spending reached  $2.8 billion, while this year the amount was $1.6 billion.

Minister Dulcidio De La Guardia said there was an unusual amount of spending in the first half of 2014, which he attributed to the election. reports La Prensa

The reduction in spending has had an effect on economic growth, which has slowed. However, the growth in gross domestic product (GDP) will increase by an estimated 6 percent, making Panama one of the most dynamic economies in the region.

The decrease in spending has reduced  debt, from 4.1 percent of GDP last year to a predicted  1.5 percent this year.