Potential growth slows. International reserves are solid in the face of the recent external financial turmoil. The dispute between Legislative and Executive continues, raising questions about the discussion of the Minera contract.
The IMF March report projects 5% GDP growth for 2023 and 4% growth thereafter. Potential growth decreases to 4% from 6%, a result of the fall in total factor productivity in recent years. The weakness of taxation performance calls for a profound reform of the system and a revision of the size and structure of tax expenditures and the corporate and sales tax bases. We present a discussion and calculation of the concept of international reserves in Panama's dollarized economy in the midst of the financial turmoil in United States and Europe. We follow up on the contract between Minera Panama and the government, now in the stage of national discussion. The political scenario remains murky: Ricardo Martinelli is ahead in all the polls, but the results of an ad hoc internal vote two weeks ago within his former party (Cambio Democratico) showed signals of weakness. A new presidential candidate throws his hat into the ring.
Now read on...
Register to sample a report