What impact does a political campaign have on the economy?

The campaign and election process In and of themselves, they have an impact on the economy, because of the expectations that are generated about who will rule over the next five years and how policies will vary across sectors.

there is even economists who state that every five years there is a level of uncertainty that tends to paralyze both domestic and foreign investment, which is why the campaign must be developed with height, proposals and a message of confidence to the electorate and the population in general.

Expert in introduction of work, Rene Quevedo believes that the greatest danger from the polarization and radicalization of the political discourse is the threat it poses to achieving the trust and stability necessary to create a favorable framework for private investment, especially foreign, where Panama is losing ground in relation to countries in the area, such as Costa Rica, Mexico and the Dominican Republic.

“In this context, there is a systematic process of demonization private initiativewhich “yields results”, because today we generate 10,000 new informal workers per month, mainly as a result of the deterioration of the climate for private investments and the consequent decline of these investments in sectors that historically generate significant amounts of jobs” , indicated Quevedo.

He adds that, ideologize the situation or trivialize it For better or worse, for political purposes, it will only exacerbate the accelerated job insecurity.

For his part, the economist Olmedo Estrada He stated that when the pre-election and election year comes, certain economic activities remain on hold, and some important investments do not arrive, waiting to see what will happen with the elections.

He believes that of course there are elements that come together and that ultimately affect the performance national economy.’

9.9%

This is the level at which unemployment is maintained in Panama after the covid-19 pandemic

6%

This is the estimated growth that Panama could have this year.

for an economist Rene Bracho: “Economic growth has a level of relationship with electoral processes to the extent that public spending increases, adding to that private sector donations to various political campaigns, increases the level of spending by communities and others”.

raises bro “that candidates of different parties go to the communities and that creates a kind of expenses, consumption in terms of logistics, mobilization, transport and others and helps to maintain the level of consumption so that demand continues to expand, and thus economic growth continues to develop.

The economist admits that this is a tradition in Panama to reach a consensus after the end of the election situation so that the state can function normally.

“I don’t think that will change and that once the Panamanian society ends, the next one will Government and different sectors will devote themselves to different activities for the welfare of the country.

The economist points out that it is important to promote the level of communication and national dialogue define priorities and challenges to be faced, such as the problem of social security. that the problem is that a road map must be defined in order to find a solution for IVM and unemployment.

“It is necessary to analyze which activities will be promoted beyond the economic policy of the country and at the strategic level in order to see the relationship between the exploitation of minerals and resources that have been promised to the state and the effects that it can cause in ecological and social terms. On the other hand, the issue is that at the global level there is a geopolitical transition that has economic implications in terms of devaluation at the international level and the economy at the country level.