Minister of Economics and Finance, Hector Alexander pointed out that the economy Panama It experienced a strong recovery, creating formal jobs, managing to reduce poverty and with one of the lowest inflation rates in the world.
Alexander presented at cabinet council report on the state of the economy and public finances, noting that the latter have embarked on the path of fiscal consolidation.
The minister said that the economic outlook is favorable for the country and that Panama has fulfilled 15 measures in 2023 The FATF plan leave this year’s gray list of this organization.
Economic growth, one of the highest in the region…
According to Alexander, the Panamanian economy was in decline from 2011 to 2020, and that from 2021 and 2022, after the pandemic, the country grew by 15.8% and 10.8%, respectively, which is one of the largest increases in the region .
He emphasized that this growth in 2021 and 2022 is higher than global growth Latin America and the Caribbean.
In the report, he stated that the sectors that contributed the most to this growth were trade with 28.4 percent; construction 22.6%; transportation and storage 14.1%; mining 2.4%, among others.
He expressed the support of the National Government MSME through the Productive Fabrics Defense Program with an injection of $460 million to 4,666 companies in the sector.
He added that it was SMEs that created most of the formal jobs in Panama after the pandemic.
falling unemployment
The report states that the economic recovery has had a positive effect on employment, with 92% of jobs created coming from formal employment.
He specified that from September 2022 to April 2022, the employed population increased by 214,672 with an increase of 13.2 percent, while the formally employed increased by 196,738 with an increase of 21.6 percent.
The high-ranking official pointed out that the unemployment rate decreased by 8.6 percent, that is, from 18.5 percent in September 2020 to 9.9 percent in April 2022.
Panama has reduced extreme poverty
Panama has reduced general and extreme poverty, especially in regions such as Ngäbe Buglé, Guna Yala and Emberá comarcas, as well as in the province of Darién.
Alexander indicated that these poverty reduction reports were based on reports from MEF and international organizations that compared figures for the region.
He also emphasized that the country is considered one of the nations in the region with high human development Chile, Argentina, Costa Rica and Uruguaywhich means attracting foreign investment.
lower inflation
The report compares that Panama has a consumer price index of 2.9 below Latin America and the world. He indicated that this index is also below that of the United States and the European Union.
Public finances: consolidated
He emphasized that the strategy of this administration is focused on changes in the law Law on Fiscal Social Responsibility made it possible to increase income from the flow of debt, attracting more money to the Panamanian economy as an important action in the implementation of the policy of automatic stabilizers.
He also pointed out that public finances were consolidated after several years of uncertainty experienced as a result of the pandemic with a drop in current revenues, which he indicated are increasing with a higher percentage of savings.
The minister pointed out that one of the most important aspects in the consolidation of public finances is that Panama appears as one of the countries with the least risk, which is reflected in the attractiveness of investments and better evaluations by international organizations.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
