Economy
From The Report: Panama 2015
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Panama’s sustained economic growth continued in 2014, with the economy expanding by 6.2%, according to the Ministry of Economy and Finance. The figure represented a slowdown from average annual GDP growth of 7.8% over the six years to the end of 2014 – including double-digit growth in 2011 and 2012 – and was partly due to the impact of a weaker global economy, the completion of major public works and slowing public sector spending. Even so, Panama’s construction boom continued in 2014, with that sector expanding by 14.9%, while the real estate and services sector expanded by 9.7% and the transport, storage and communications sector by 6%.

This chapter features interviews with Dulcidio De La Guardia, Minister of Economy and Finance; Melitón Arrocha, Minister of Commerce and Industry; and Erick Campos, Managing Director, Fitch Central America.

Articles from this Chapter

Interview

Dulcidio De La Guardia, Minister of Economy and Finance: Interview
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Interview:Dulcidio De La Guardia With GDP growth forecast at 7% in 2015, why is a spurt expected after the slowdown in 2014? DULCIDIO DE LA GUARDIA: Despite an increase in public spending, 2014 was not a typical year due to the elections, which have historically had an impact on the growth rate. In addition to this, the expansion of the Panama Canal was interrupted for several weeks in the first quarter of the year, at a time when the country was also facing strikes by construction workers. While…

Interview

Melitón Arrocha, Minister of Commerce and Industry: Interview
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Interview:Melitón Arrocha What are the strategic sectors for development? MELITON ARROCHA: The government has identified the logistics, agriculture, livestock, mining, tourism, energy, construction, services, technology and communications sectors as the pillars of economic development. With these pillars in mind, the government is working to adapt the administrative structure of the state in order to strengthen economic development. We elevated the former National Environment Authority to…

Analysis

Labour market conundrum: Trends are broadly positive, but more skilled workers are needed
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The overall unemployment rate in Panama increased from 4.1% in 2013 to 4.8% in 2014. This included 3.5% (or 61,616 people) who were openly unemployed and an additional 1.4% (or 24,289 people) assessed as being in the “hidden unemployed”, according to figures published by the National Statistics Agency. Nearly two-thirds of the absolute increase in the number of jobless people in 2014 was accounted for by just four sectors: hotels and restaurants, construction, manufacturing and the public service.…

Interview

Erick Campos, Managing Director, Fitch Central America: Interview
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Interview:Erick Campos What needs to be done for the country to achieve an “A” investment grade rating? ERICK CAMPOS: Panama was upgraded to “BBB” in June 2011 on the country’s solid growth prospects and favourable public debt dynamics. This rating was reaffirmed in February 2015. The “stable” outlook suggests that upward and downward pressures on the rating are evenly balanced. As such, one does not foresee a near-term upgrade into the “A” category. In the medium term,…