Panama surprises the world: Positive economic indicators drive its growth

Inspenet, May 18, 2023

Panama registers a solid economic recovery and shows positive indicators in various areas, according to statements by the Minister of Economy and Finance , Héctor Alexander.

The country has experienced significant growth, generating formal jobs, reducing poverty and maintaining a low inflation rate compared to the rest of the world.

During the presentation of a report on the economic situation and public finances, the minister highlighted the progress towards fiscal consolidation and highlighted the favorable prospects for the Panamanian economy. He also mentioned that Panama has complied with 15 actions of the Action Plan of the International Financial Action Task Force (GAFI), which will allow it to be removed from the gray list of this organization this year.

Regarding public finances, Alexander explained that the administration’s strategy has focused on increasing revenue through modifications to the Fiscal Social Responsibility Law.

This has made it possible to attract more investment and strengthen the Panamanian economy, as part of a stabilizing policy. The minister emphasized that this strategy has been consistently implemented even in the most critical moments of the pandemic, obtaining favorable results without improvisation.

In relation to the consolidation of public finances, Panama’s position as one of the countries with the lowest risk is highlighted, which attracts investment and improves ratings by international organizations.

1826 Panama economia shutterstock interna

Revealing data: Panama consolidates its position as an attractive destination for investments

The report also highlights the remarkable economic growth experienced by Panama as of 2021, after the pandemic. In said period, the country recorded growth of 15.8% and 10.8%, respectively, exceeding the average for Latin America and the Caribbean. The sectors that have contributed the most to this growth are trade, construction, transport and storage, and mining.

In terms of employment, the economic recovery has had a positive impact, with 92% of the jobs generated corresponding to formal jobs. The minister reported that, between September 2022 and April 2023, the employed population increased by 214,672 people, representing an increase of 13.2%.

In addition, formal employment experienced an increase of 21.6%, with a total of 196,738 jobs created in the same period. The unemployment rate also dropped significantly, from 18.5% in September 2020 to 9.9% in April 2022.

Panama stands out in Latin America: rising economic indices and quality of life

Regarding the reduction of poverty, a decrease has been observed both in general and in specific regions, such as the Ngabe Buglé, Guna Yala and Emberá regions, as well as in the province of Darién. These results are based on reports from the Ministry of Economy and Finance (MEF) and international organizations that have compared the figures at the regional level.

Panama stands out as a country with high human development, along with nations such as Chile, Argentina, Costa Rica and Uruguay, which in turn attracts foreign investment. In addition, the report indicates that Panama registers a consumer price index of 2.9, below Latin America and the world average, and even below that of the United States and the European Union. These positive indicators reflect the solidity and sustainable growth of the Panamanian economy, positioning the country as an attractive destination for investment and economic development.

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