Panama has enviable geographical characteristics that make it a high point for commercial operations. Additionally, it has a first-world banking services platform, a solid currency and many other added values that allow it to position itself as one of the economies with the best economic growth in the last decade. According to international reports, this economic behavior will continue to be the norm and positive growth numbers are expected for 2021.
Bank of America, a financial services company in the United States, reviewed Panama's economic growth prospects for 2020 and reported that it went from -4% to -10%.
The bank, however, warns that the economic outlook remains positive for next year. In 2021, a recovery in Panamanian Gross Domestic Product of 5.5% is expected, higher than the 3.8% previously forecast.
"The Panamanian government has moved quickly to meet its financing needs, in contrast to many Latin American countries that are struggling, and the fiscal deficit is unlikely to increase to double-digit levels due to prudent expenditure management," reported this Thursday the Presidency of the Republic, through a press release.
The document establishes that "despite the fact that a credit rating downgrade could occur within the next twelve months, we expect the Nation to maintain its investment grade status, backed by a growing diversity of the economy, favorable market policies and stable governance conditions. "
And he adds: "Among the positive factors that Bank of America highlights from Panama to recover the production that was lost this 2020, are its macroeconomic position (well positioned to reap the benefits of a rebound in world trade), the diversification of its economy (entry into operations of Cobre Panamá), its economy led by exports and the trade surplus when considering goods as services. " (The Star of Panama, Economy, publication of 23-7-20)