Panama´s Economy Growths 8.2%

 Panama, Casco Viejo
Casco Antiguo, San Felipe

Panama has been growing very fast for the last 8 years. A “miracle” made by a curious mix of tourism, investment and other countries misfortunes (Alias Venezuela and Chavez or Colombia and the FARC). Although on the short term there´s been a great impulse by the construction sector, consider Panama´s big three big long term fundamental investments: the Panama Canal Expansion project (which has already started), the relocation of the regional office of very important companies such as Caterpillar, Maersk, Dell, Procter and Gamble, Aventis and finally the oil refinary project in Puerto Armuelles. All of which has created a long term, sustained demand for talent and products, therefore growth.

But also inflation. The country has been experiencing for the first time ever what inflation is, and how to deal with a slowing global economy. One of its strenghts is that everything combined, Panama comes out as a micro niche within a niche, and that is where its advantage lies in today´s world.  Geographically and economically, this is where hurricanes are only felt as storms.

According to today´s La Prensa report (based on the report from the Government´s Comptroller office) Panama has grown this trimester 8.2% (see report here: http://www.contraloria.gob.pa/archivos_informesdelc/InformeTrimJunio2008/resumen.htm  and La Prensa note below). 

Or the entire report here:  http://www.contraloria.gob.pa/archivos_informesdelc/InformeTrimJunio2008/index.htm

The basic numbers are:

Tourism grew 11% and spent 19% more
Transportation, deposits and Communications grew 148.3% (wao, I guess Cable & Wireless is really making some money)
The Panama Canal increased income on 12.1%

Now, what about Casco Viejo? If Panama is where the hurricanes are only felt as storms, then in Casco all you need is a cute umbrella. The fundamentals of a revitalized, eclectic and economically vibrant historic city are as strong as ever. And since you never have millions of products available at one time (maybe 6 or 7) demand is always there. Plus, it is just a fun place to live in or visit, which at the end of the day brings more value on its own as humans rate fun highly in their scale. The most valuable places in the world are those where humans enjoy themselves the most. They have a rare combination of beauty and content, and Casco Antiguo is a rising star within Panama. 

And here is the article from La Prensa which you can access at: www.prensa.com

Panamá, miércoles 27 de agosto de 2008
 

IMAE.contraloría publica informe.

Economía panameña sube 8.2%

El ritmo de crecimiento se ha desacelerado, pero sigue siendo fuerte y uno de los más altos de la región.El Colegio de Economistas estima que la inflación de 2008 duplicará la de 2007: 8.7%.

1080572Marianela Palacios Ramsbott
mpalacios@prensa.com

La economía de Panamá, medida a través del Índice Mensual de Actividad Económica (IMAE), que publicó ayer la Contraloría , creció 8.2% en el primer semestre de 2008.

Eso representa una desaceleración de más de dos puntos porcentuales respecto a lo registrado en el mismo periodo de 2007, pero ese ritmo de crecimiento sigue siendo “muy fuerte” y uno de los más altos de la región. En eso coinciden el presidente del Colegio de Economistas, Raúl Moreira, y el financista Domingo Latorraca, analista de Deloitte.

La actividad económica del país se incrementó en 10.58% el año pasado. “La desaceleración que hemos tenido no es para alarmarse. Al contrario, si seguíamos creciendo a ese ritmo podíamos enfrentar un sobrecalentamiento de la economía y eso se traduciría en más inflación”, opina el economista Adolfo Quintero.

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