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Latin America Investment News on Viva Tropical

5 Ways Panama Could Screw Up Its Booming Economy

Article Summary:

Panama’s gross domestic product grew by 77.5% in the past seven years. The main economic components include the Canal, the Colon Free Zone, ports, and tourism, among others, but experts are warning if Panama doesn’t take notice it could self-destruct the nation’s economy.

Photo Credit: Pacific View

Original Article Text From Panama America via Google Translate :

Panama’s GDP grew 77.5% over the past seven years

The main economic components include the Canal, the Colon Free Zone, ports, tourism, among others. It is expected that this year the industry sector will grow by 5%, while the previous year was 3.9%.

The gross domestic product of Panama, valued at constant prices has increased since 2004, which was $13 000 099 000 000 until last year, when it recorded approximately 23 thousand 253 million dollars. According to statistics provided by the Union of Industrialists of Panama (SIP), GDP grew by 77.5% in the last seven years.

Among the sectors that contributed most to GDP in 2011 include transportation, storage and communications 601 000 000 5000, followed by wholesale and retail, with 3000 and $ 527 million financial intermediation 886 700 000 thousand dollars.

As for the limitations they have faced some sectors, the economic adviser SIP, Victor Cruz, noted that agriculture is a sector with a number of shortcomings, is highly fragmented as occurs in this sector in the country.

“There are several problems such as input costs are very high and are not reflected in prices in order to recover the investment and production is very difficult in the sector,” said Cruz.

He reported that the only change that can add a little more is the industrial sector, which last year grew 3.9% and there are conservative estimates that may grow 5% this year.

“The main components are economic Canal Free Zone, ports, tourism, the marine industry, the banking, telecommunications, logistics and airport and continue to show great dynamism, exports continue to grow and attract investment,” the economist Nicolás Ardito Barletta.

He reported that the country could continue to grow between 5 and 8% a year if you do the right things and one of the main priorities is training and education so they can take advantage Panamanians a historic opportunity in the country.

Meanwhile, Luisa Turolla economist said the economy continues its expansion cycle, keeping this year the growth rate recorded last year. Comptroller data, until mid-year, confirm a growth of over 10% in 2012.

“This is good news for the country if we consider the problems facing most developed economies. The expansion is fueled by the strong growth in domestic demand, by the execution of an important macro portfolio of construction and investment projects, “he said.

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From Panama America

  • http://www.facebook.com/brheath Brian Robert Heath

    They need to be careful not to price themselves out either on Communications, I had business friends come from Canada to explore hosting their core network for telecommunications here, they visited all the data centres and received quotes from all options. Economically it was cheaper to host it back in Toronto and they also had better access to technical skills. The numbers didn’t work for the hype of doing it in a tax friendly country.

Latin America Investment News on Viva Tropical