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Panama Leads Latin America in 2011 GDP Growth, Slow Down Expected for 2012

Article Summary:

The IMF and BBVA Research released estimates for Panama, stating Panama’s Economy will suffer a slowdown in 2012. The economic crisis in current months European Countries has caused rising commodity prices and a fall in export from Latin America Countries. Panama’s Gross Domestic Product, high at over 9% in 2011, is expected to fall at 6.7% for 2012.

Photo Credit: Panama America

Original Article Text From Panama America via Google Translate :

Panama’s Economy Will Suffer Slowdown in 2012

The Panamanian economy registered a robust growth this year, but will suffer a slowdown in 2012, as inflation. This, by the economic turmoil of recent months in European countries, causing a rise in commodity prices and a fall in exports from Latin American countries. So say the latest projections by the International Monetary Fund (IMF) and the Center for Economic Studies of BBVA Research.

In 2011, Panama will lead the growth in Latin America, with a Gross Domestic Product (GDP) to be located at 9.1%, but this will fall to 6.7% in 2012. In the case of inflation, this will come to 5.6% in 2011 and next year will drop to 5%, according to BBVA.

The IMF is more conservative in their estimates and indicates that the country will grow 8.5% this year and in 2012 will drop to 7.2%. “It is projected that real GDP growth will exceed 8.5% in 2011, thanks to the uninterrupted sound of the construction sector, trade and transport, and would experience a slowdown in 2012,” said Corinne Delechat of IMF.

Meanwhile, Joaquin Vial, BBVA Research chief economist for Latin America, notes that “by 2012 we have revised down growth estimates for the entire region from 4.2% to 3.7%, with major adjustments to Brazil, Argentina, Panama and Paraguay “.

He warned that a fall in export prices, as is providing, leave countries vulnerable to domestic demand which does not conform itself in response to the fall. He concluded that in the event of a deterioration strong in Europe, the region would grow, albeit at lower rates.

Domingo Latorraca, a partner at consulting firm Deloitte, said the growth estimated at 6.7%, by BBVA, and 7.2% by the IMF is good. While the increase will be lower than that of 2011, next year “will be extraordinary,” he said. Coincided with the two entities, saying that the growth rate will reach those levels, the product of a complicated international environment.

Said to be mainly observed the whole area of the European Union, with its repercussions on the global economy.

On inflation, he said he does not believe that this will increase next year. The economist said it would be lower, which have a direct impact on prices for final consumers.

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From Panama America

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