Economy & Business - August 2003

The economy is likely to be the main issue in next year's election. The frontrunner seems to be Martí­n Torrijos, the son of the former president. He is leading the opinion polls, but most analysts expect his margin to be less than the polls are currently indicating. In the run-up to the election, public spending is likely to rise, though this is likely to pose problems for the next government. The fiscal deficit is likely to pick the thick end of 3% of GDP. The big variables are revenues from the Canal and the size of the deficit in the social security fund.

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