Panama is the Fastest Growing Economy in Latin America for 2009 and 2010

Panama will grow 2.5%

The commission estimated in December that the country would expand 4.5% this year, but yesterday revised downward the forecast.

The Economic Commission for Latin America and the Caribbean (CEPAL) downgraded its growth forecasts for all countries in the region on July 15 and Panama is not immune. The agency now provides that the national economy to grow 2.5% this year and not 4.5% as estimated in December.

However, when compared with other nations, Panama continues to occupy a unique position: it would be, along with Bolivia, the country that will expand the most in 2009.

According to ECLAC, Peru and Uruguay, two countries that were fighting with the regional leadership with Panama, will grow less: 2% and 1% respectively.

The region as a whole, will shrink 1.9%, mainly dragged by the collapse of Mexico and Brazil. And this fall contrasts with the strong levels of growth prior: 6.1% (2004), 4.9% (2005), 5.8% (2006 and 2007) and 4.2% (2008).

Regional contraction, reflecting the international financial and economic crisis, it will generate a significant increase in the level of unemployment (from 7.4% to 9%) and poverty, warns the Economic Survey of Latin America and the Caribbean report for the 2008-2009 period, filed in Chile the executive secretary of ECLAC, Alicia Bárcena. “There will be a very large impact on poverty,” he said. The region has 180 million of 70 million poor and destitute.

It expects a surge in activity by year’s end and that the regional gross domestic product will raise 3.1% in 2010. But, according to the commission, that fee will be insufficient to reverse the rising unemployment and worsening social indicators.

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