A sustained growth of private investment will not be enough to offset the decline in the amount of investment in public infrastructure over the next four years.
On top of the projection of less public infrastructure is an expectation of poor tax collection for the period in question, according to analysis by the firm Indesa. Company projections indicate that "...
Considering the advantages offered by the Trade Promotion Agreement, U.S. retail chains are evaluating the possibility of setting up operations in the canal country.
Among the factors attracting the attention of these companies are the presence a large number of American and Canadian retirees in the country, economic growth and the benefits of the Trade Promotion Agreement (TPA) in force with the United States (U.S. ).
Forecasts by private consultants and the government agree that in 2011 the Panamanian economy will grow 9% due to the combination of public and private investment, 11.6% and 8% of GDP respectively.
An article by Edith Castillo Duarte in Prensa.com reports the upward shift of the expected growth of Panama’s economy in 2011 by both the government and the consulting firm INDESA, and how estimates of both parties agree. During the first quarter economic growth has already exceeded expectations, reaching 9.7%.
The country's economy grew a remarkable 2.5%, fueled mostly by the construction industry and domestic demand.
On the other side, agriculture was one of the sectors most affected by the crisis, specially by the drop in foreign demand, and by losing a series of tariff benefits under the European SGS-Plus system.
Consulting firm Indesa lowered its forecast for panamanian economic growth; its was at 5.7% in December.
According to a note published on prensa.com: "I am inclined towards the pessimistic projections, around 4%. In a situation like the current one, unemployment could increase to 5%,' Guillermo Chapman, president of Indesa, said yesterday."
Even though the public debt has gone up $383 million so far this year, all seems to indicate that this increase could be reversed by the close of this year.
Some private sector analysts are betting that the total will decrease.
"During the first semester of the year, the Government received close to $500 million more that what was budgeted and therefore can reduce the debt using those funds.
Panama can look forward to more than US$20 billion in public and private-sector investment over the next two years, economist Guillermo Chapman said at a business forum organized by the Indesa consultancy.
"This figure does not include the development of Howard [the former US base] or real-estateinvestment in other areas," Chapman added. If current trends in the macroeconomy are maintained, Panama can look forward to practically full employment, he said.
PRONicaragua, is the Nicaraguan Investment Promotion Agency, established in 2002. We are a non-profit, public-private institution whose mission is to generate economic growth and job creation in Nicaragua by attracting high-quality foreign direct investment. The Agency provides complimentary support services to qualified investors seeking investment opportunities in our country.
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Panamá Pacífico with thousands of interested visitors to its stand in Expocomer 2010, not only offered the Key Note speech of thursday, but launched the residential phase of this great development on the banks of the Panama Canal