The dollar continues to lose value for Panamanians

He announcement that inflation has decreased Last year was followed by an undeniable fact, which is that the purchasing power of Panamanians continued to fall.

This indicator continues for the third year in a row decreasing to 91 cents for the dollar in 2023.

This means that one dollar is in 2013, the year used as the base National Institute for Statistics and Census (Inec), Today it brings only 91 cents.

In contrast, from 2013 to 2023 Accumulated inflation is 9%.

Former Minister of Economy, Frank De Lima, said that studying the Index of Consumer Prices (CPI) It must be taken into account that if he fell on some items it is because the Panamanian does not have the capacity to buy them or he prefers other expenses.

“Clothes and shoes have fallen because people don’t have money and don’t spend, just like furniture and household items which, since they are not essential, there is no currency and people do not have much purchasing power, they will not spend. on clothes or furniture,” De Lima asserted.

Another element to consider is that several of these costs were subsidized, such as electricity and fuel, so the data would be distorted.’

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percent is the year-on-year increase in electricity, which was the strongest last year even though it remained subsidized.

In case of food, which went up by 3.4%, former Minister of Economy He specified that there are measurements that are carried out on products that still enjoy price control, which this Government has maintained.

“That’s why people feel that inflation is higher than when they go to the supermarket 3.4% which the Inec table shows, because there is often a shortage of those products or they buy another brand,” he said.

The government continued with these measures the goal that inflation does not rise, However, 2024 begins without some subsidies and with price increases such as those for electricity.

Regardless of whether inflation leads to a decrease in purchasing power.

That’s how economist Salomón Samudio thinks, who believes that since there is no policies aimed at increasing consumptionwe are in this situation.

The expert assumes that the abolition of these subsidies will further reduce the purchasing power which added to increase lightit will make life more expensive.