IMF forecast 12% economic growth in Panama this year
The IMF indicated that this growth is underpinned by the boost from the vaccination program, copper production and the recovery of private investment.
The International Monetary Fund (IMF) described Panama's economic "outlook" as "optimistic" and forecasts a growth of 12% for this 2021, after the fall of 17.9% due to the pandemic last year, reported this Wednesday the Panamanian Government.
In the final declaration of the virtual mission within the framework of the Article IV consultation, the IMF indicated that "the growth forecast of the Panamanian economy in 2021 is 12%, underpinned by the impulse of the vaccination program, production full-scale copper production and the recovery of private investment."
Panama has applied 849,376 doses of vaccines against covid-19 within the framework of the national immunization program that began on January 20, and the Government has said that it aims to vaccinate the vast majority of the population this year, after consolidating a portfolio of 9.2 million doses.
The report highlights that the possible risks for the growth of the Gross Domestic Product (GDP) of Panama, a country whose economy depends on services and logistics, lie in the "disruptions in the flows of capital and trade throughout the planet." because of the ongoing pandemic.
An eventual slowdown in globalization could also affect the pace of the Panamanian recovery, which would negatively affect the activity of the Canal and the logistics sector.
"As a hedge against these potential external shocks, Panama requested a Precautionary and Liquidity Line for two years, which was approved by the IMF Board of Directors in January 2021, for an amount equivalent to 500 percent of the quota" , the Ministry of Economy and Finance (MEF) specified in its statement.
The IMF mission believes that the development of the domestic capital market will increase the sources of financing and the prospects for higher and more inclusive growth, the official statement said.
Regarding the permanence of Panama in lists of countries with deficiencies in the fight against money laundering, the MEF said that the multilateral recognized the commitment of the Panamanian authorities to leave "the one prepared by the Financial Action Group (FATF), in the the country that was reinserted in 2019.
The multilateral suggested to Panama "to continue improving national statistics to ensure adherence to international standards on quality and dissemination of data."
In the final declaration of the virtual mission within the framework of the Article IV consultation, the IMF indicated that "the growth forecast of the Panamanian economy in 2021 is 12%, underpinned by the impulse of the vaccination program, production full-scale copper production and the recovery of private investment."
Panama has applied 849,376 doses of vaccines against covid-19 within the framework of the national immunization program that began on January 20, and the Government has said that it aims to vaccinate the vast majority of the population this year, after consolidating a portfolio of 9.2 million doses.
The report highlights that the possible risks for the growth of the Gross Domestic Product (GDP) of Panama, a country whose economy depends on services and logistics, lie in the "disruptions in the flows of capital and trade throughout the planet." because of the ongoing pandemic.
An eventual slowdown in globalization could also affect the pace of the Panamanian recovery, which would negatively affect the activity of the Canal and the logistics sector.
"As a hedge against these potential external shocks, Panama requested a Precautionary and Liquidity Line for two years, which was approved by the IMF Board of Directors in January 2021, for an amount equivalent to 500 percent of the quota" , the Ministry of Economy and Finance (MEF) specified in its statement.
The IMF mission believes that the development of the domestic capital market will increase the sources of financing and the prospects for higher and more inclusive growth, the official statement said.
Regarding the permanence of Panama in lists of countries with deficiencies in the fight against money laundering, the MEF said that the multilateral recognized the commitment of the Panamanian authorities to leave "the one prepared by the Financial Action Group (FATF), in the the country that was reinserted in 2019.
The multilateral suggested to Panama "to continue improving national statistics to ensure adherence to international standards on quality and dissemination of data."