MEF: Panama leads economic recovery in the region

He Ministry of Economy and Finance (MPEG) He assured that the country has experienced a significant recovery, which far surpasses the rest of the region.

In accordance with Horatio Estribiadviser UPCG, in 2022 achieved growth 15.8%while in 2021 it was 10.8%. In addition, growth is expected to remain between 5% and 6% this year, above the regional average.

For Estribí, this growth was achieved together with the low level of inflation and the recovery of formal employment, and he highlighted the achievements made Panama in the process of economic recovery after the pandemic.

The growth of expenditures, especially current expenditures, which fell by 4% in 2022, was reduced, while state revenues increased. These indicators indicate a clear recovery of the economy, says the economist.

Although solid growth is expected this year, it will not be at the same pace as in 2022 and 2021. However, indicators such as growth Monthly Index of Economic Activity (IMAE)predict growth above the regional average.

Specific examples of this growth include a 24% increase in car sales and an 80% increase in occupancy permits in the construction sector during the first quarter compared to the previous year.In addition, revenues from Channel due to tolls, they increased by 17%.

Estribí believes that Panama is consolidating its role as a safe center for attracting foreign direct investment. In addition, the Panamanian economy benefits from low inflation, the use of the dollar as legal tender and tax incentives offered to foreign investors.

Panama is also approaching formalization and leaving international gray and black listswhich will help attract more investment and reduce the cost of financing public debt.

Regarding employment, Estribí noted that the results of the census are awaited to determine the level of unemployment in 2023 compared to previous years. However, he indicated that progress has been noted in formal employment, which has increased as a share of total employment.

According to Estribí, the sectors leading to economic growth in 2022 were: construction, trade, logistics and international transportwhere the Panama Canal plays a fundamental role.