With an economy growing at a pace such as Panama’s, it's normal that prices tend to rise, especially in an international context of high raw material prices.

In the first half of the year Panama's GDP grew by more than 10%, reflecting the country’s strong economic dynamism, which is also reflected in prices. This year the government projects inflation of 4.5%.

In the boom time that Panama is experiencing, experts advise consumers to save, and learn to deal with inflationary pressures typical of fast-growing economies.

In an article in panamaamerica.com, the consultant Luisa Turola, says that "when an economy has as strong a momentum as Panama’s, because of the effect of all the major projects and investments that are being developed, aggregate demand is very high, and this is why inflationary pressure is always generated. "
Factors such as fuel, which is imported, and various other raw materials which are also brought from abroad at prices which tend to fluctuate and not be controlled in Panama, affect the rate of inflation and, therefore, the price of products. "

Source: Panamaamerica.com.pa

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