The Central Bank has confirmed the widespread perception of economic slowdown, with growth forecast for this year falling from 3.4% to 2.8%.
The president of the organization confirmed that an excess of dollars in the foreign exchange market explains the behavior of the exchange rate, which has remained relatively low and stable in recent months.
The parsimony of the Varela administration in decision making and implementation of relevant projects is affecting the competitiveness of the Panamanian economy.
Representatives from the Chamber of Commerce of Panama argue that "... We've come from a state where everything was fast to one that is slow, leading to a conflict not only in terms of perception, but also the numbers that are reflected, "that is to say, the results.
Economic activity in October rose just 2.6% compared to the same month last year, continuing the slowing trend that has been seen since March this year.
Even if production of the free zone regime is excluded, a 2.9% increase in the index can be seen, an increase which is not enough to reverse the slowing trend that has been detected since the first quarter.
Spending is slowing in final household consumption, imports of consumer goods, bank lending for consumption and the monthly index of economic activity trade.
Following the trend of slowdown seen in overall economic activity, consumer spending by Costa Ricans has lost dynamism, which is mainly seen in the expenses made at supermarkets, gas stations and restaurants.
Increased borrowing costs, a disincentive to foreign investment and distrust of economic performance, are part of the expected scenario if public debt growth is not controlled.
Prensalibre.com reports that "... The draft budget for 2015 presented by the Ministry of Finance, amounting to $9.250 million (Q71 thousand 840.8 million), contemplates taking on new debt of about $2 billion (Q15 billion), of which $1.6 billion (Q12 thousand 334 million) came from bonds and loans. "
The Central Bank has cut its growth forecast for GDP for the year to 4% - 4.5% and expects inflation to be between 6.55% and 7.5%, higher than initially expected.
From the executive summary of the report "State of the Economy and Prospects, First Semester 2014":
At the end of the first half of the year, the Nicaraguan economy is maintaining positive growth rate, mainly driven by external demand and improved terms of trade. The exporting agricultural sector has been the main driver of economic dynamism in 2014, alongside growth in the manufacturing industry.
Caribbean-Central American Action (CCAA) is a private, independent organization that promotes private sector-led economic development in the Caribbean Basin and throughout the Hemisphere.
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