business

Economic growth may slow down

LA PRENSA

slow down:A U.S. recession could impact Panama Canal traffic.978126

The consulting firm Indesa has predicted a downward slant for the Panamanian economy for this year, dropping projected growth statistics from 10.1 percent to 8.7 percent.

The change is due to the latest developments in the mortgage crisis in the United States and recent general economic downturns in Central America as well as in the rest of the world.

Panama’s Gross Domestic Product (GDP) grew 10.2 percent in 2007, and it is unlikely that the country will be able to continue such a high growth rate.

Many economic indicators are pointing toward a possible recession in the United States, which would have an impact on Panama’s maritime business.

U.S. unemployment rose sharply last week to its highest levels since October 2005, and consumer spending slowed down unexpectedly during the Christmas season.

Indesa analyst Felipe Chapman commented that it is difficult to predict the impact of the U.S. economic situation on Panama.

While maritime business could drop, Panama might see business here increase as lower interest rates go into effect.