Panama gets IMF thumbs up

THE GROWTH of Panama’s economy in the last decade has been the highest in Latin America and with the expanded canal the country’s future will continue to be vibrant  says the International Monetary Fund (IMF)

In its most recent report on the Isthmus the IMF  said it expected that it will continue to have one of the highest rates in the region in the medium term, with low inflation, a stable financial system and a decreasing trade deficit.

In the report, published as a result of a mission to Panama, the country’s projected growth was 6 percent for 2016 and in the medium-term.

The projections of the IMF for this year are similar to those of the government, the World Bank and the Economic Commission for Latin America and the Caribbean.

Growth in the first quarter of the year was 5.7 percent according to unofficial data from the Ministry of Economy and Finance.

According to the IMF, in the medium term the economy will be driven by the start of operations of the expanded Panama Canal and low fuel prices, which will compensate for the slowdown of the global economy and the appreciation of the dollar, which hurts the country’s tourism sector.

THE CANAL
The increase of transits through the Panama Canal and investments in energy and logistics will help to maintain a “vibrant” growth, the agency said.

The Canal expansion locks have already been successfully tested and the first mega vessel to officially transit the canal during the opening ceremonies, that will be broadcast around the world has already left Greece on its 14-day voyage to Panama.

Over 21,000 people will attend the ceremony, including heads of state and foreign dignitaries,

The Panama Canal Authority (ACP)  has distributed 20,000 tickets to local citizens. The celebrations will cost the Authority $3 million and the Foreign Affairs Ministry has chipped in with an additional $1 million.