Panama economy heading towards  5.5% growth — IMF

Panama’s economy is is advanced “in its recovery process”.  and  “we expect economic growth for 2020  to reach 4.8%  and climbing said The International Monetary Fund (IMF) following an on-site evaluation.

“We see that there is a clear recovery in the economy. We expect that economic growth for this year will be of the order 4.8%,” said the head of the IMF mission, Alejandro Santos. 

It is estimated that “good management of finances” will allow the Panamanian economy to grow at a rate of 5.5% in the medium term, Santos added.

The Panamanian economy has been decelerating which was accentuated in 2019 when it was expected to grow 3.5%, the lowest rate in a decade and as a result of the depletion of the economic model based on large public investments in infrastructure, economists told the  Efe News Agency.

The multilateral agency believes that this year the deficit and inflation “will remain under control and that the economy will continue to grow,” after learning about the initiatives, policies, strategies and how the country will face global challenges.

During the year 2019, the fiscal deficit was controlled, which closed at 3.1% in accordance with official data, and it is expected that the budgeted amount will be achieved, thus aligning with the Fiscal Social Responsibility law, Santos added. .

The Vice Minister of Finance, Jorge Luis Almengor, stressed that the Panamanian Government is committed “to the prudent management of public finances, in order to resume the fiscal discipline required to comply with the Fiscal Social Responsibility Law, the Law of Budget and other laws applied in Panama. “

As part of the economic recovery plan, the Government of Laurentino Cortizopaid debts of $1.584 billion to suppliers, contractors, teachers, agricultural producers, banks and the Social Security Fund (CSS), according to the official information.