Caribbean & Central America - August 2011 (ISSN 1741-4458)

The most recent report by the UN Commission for Latin America and the Caribbean (Eclac) forecasts 8.5% GDP growth for Panama in 2011 (up from 7.5% in 2010), the highest rate in the whole of Latin America and the Caribbean, where the regional average is forecast at 4.7%. Eclac cites Panama’s main growth drivers as construction and tourism, based on increased investment in public infrastructure (in line with the government’s huge US$13.5bn five-year infrastructure plan for 2010-2015) and planned tourism projects. Yet despite this, local economists such as Adolfo Quintero, former president of the Colegio de Economistas de Panamá, are grumbling about the rising public debt. Quintero cited as cause for concern a projection by the economy and finance ministry (MEF) saying public debt would increase by 35.36% by December 2014, up from US$10.97bn in 2009.

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