In a period of slowing economic growth in many parts of the world, popular pressure for governments to act to fix the situation can be enormous. In responding to such pressure, it is vital that leaders understand the real causes of negative economic developments and undertake actions that will fix them rather than exacerbate them. If intrusive government regulation has contributed to an economic problem, it is unlikely that still more government regulation will cure it. If excessive taxes have stifled investment and entrepreneurship, increasing tax rates is unlikely to spur economic growth. If the monetary supply has been too loose or credit too easily available, lowering interest rates is unlikely to be the magic fix the public demands.

The Index of Economic Freedom offers a timetested formula for sustained economic growth. Grounded in the classical liberal economic theories of Adam Smith and Friedrich Hayek, the Index promotes economic policies that...

Source: The Heritage Foundation

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Panama Falls in Apede's Economic Freedom Index

July 2013

The lower rating is the result of a larger sized government and more restrictions on foreign investment.

The indicator, prepared by the Panamanian Association of Business Executives (APEDE), moved down from 2.92 in 2012 to 2.85 this year.

According to the study of the Association, "the government controls through legal monopolies, granted via concessions, the sectors of electricity generation and transmission, management of the country's only international airport and the gaming market, among others."

Panama: Economic Freedom Under the Magnifying Glass

June 2011

Negative aspects such as high state spending and discrimination in income tax payments led to points deductions.

The Panamanian Association of Business Executives (APEDA), has presented the economic freedom index, an indicator designed to measure the country's climate for attracting business and chances of increased employment options in the country.

The 2011 Index of Economic Freedom

January 2011

In Central America, El Salvador leads (39 in the world), followed by Costa Rica (49), Panama (59), Guatemala (79), Nicaragua (98) and Honduras (99).

According to the Heritage Foundation, who develops the index in association with The Wall Street Journal, "economic freedom is the fundamental right of every human to control his or her own labor and property.

The Link Between Economic Opportunity & Prosperity

November 2009

The 2009 Index of Economic Freedom: El Salvador 33 in the world, Costa Rica 46, Panama 55, Nicaragua 84, Guatemala 87, Honduras 91.

The 2009 Index of Economic Freedom, produced by The Wall Street Journal and The Heritage Foundation, covers 183 countries across 10 specific freedoms such as trade freedom, business freedom, investment freedom, and property rights.