economy

Banks predict robust growth

Two global banks painted a bright future for Panama’s economy.

A World Bank economist predicted growth of up to 9.5 percent next year.

la prensa

hopeful: The World Bank and International Monetary Fund waxed positive about the country economic at an October meeting. 1115755

At the most recent meeting of the World Bank and International Monetary Fund (IMF), held in Washington, D.C. in October, economists representing both banks highlighted Panama as one of the countries with positive economic prospects for 2009.

Augusto de la Torre, chief World Bank economist for Latin America and the Caribbean, predicted that Panama would stand out as the fastest growing country in Latin America in spite of the impact of the financial crisis. Based on World Bank data, De la Torre indicated that the country’s economy could grow by 9.5 percent.

That prediction was shared by IMF officials, though they made a more cautious estimate of 7.8 percent economic growth, a figure more akin to the 7.5 percent foreseen in reports by the Ministry of Economy and Finance.

Estimates by the two financial institutions varied somewhat by the magnitude of the impact the global financial slowdown would have on Central America, as well as the effect recessions within the economies of key trading partners may have on the local economy.

The last time Panama led economic growth in Latin America was last year, when the gross domestic product exploded by 11.5 percent, according to data from the Comptroller. And, from a global perspective, only two countries, Georgia, in Eastern Europe, and Qatar, in the Middle East, reported more rapid growth, at 12 percent and 14 percent, respectively.