The International Monetary Fund (IMF) expects that Panama's gross domestic product (GDP) will grow 4.8% this 2020, following an on-site evaluation in which it recognized that the country is advanced "in its recovery process".
"We see that there is a clear recovery in the economy. We expect that economic growth for this year will be of the order 4.8%," said the head of the IMF mission for Panama, Alejandro Santos, as reported by the Ministry of Economy on Monday and Finance (MEF).
The Panamanian economy has been decelerating for years, which was accentuated in 2019 when it is expected to grow 3.5%, the lowest rate in a decade and as a result of the depletion of the economic model based on large public investments in infrastructure, economists have explained to Efe.
The multilateral agency believes that this year the deficit and inflation "will remain under control, and that the economy will continue to grow," after learning about the initiatives, policies, strategies and how the country will face global challenges, said the MEF.
"We think that inflation," which has been below 1% in recent years, "will remain under control, around 1%" in 2020, Santos said.
During the year 2019, the fiscal deficit was controlled, which closed at 3.1% in accordance with official data, and it is expected that the budgeted amount will be achieved, thus aligning with the Fiscal Social Responsibility law, Santos added. .
The IMF estimates that "good financial management" will allow the Panamanian economy to grow at a rate of 5.5% in the medium term, Santos added.
The Vice Minister of Finance, Jorge Luis Almengor, stressed that the Panamanian Government is committed "to the prudent management of public finances, in order to resume the fiscal discipline required to comply with the Fiscal Social Responsibility Law, the Law of Budget and other laws applied in Panama. "
As part of the economic recovery plan, the Government of Laurentino Cortizo, who took office on July 1, canceled $ 1,584 million from suppliers, contractors, teachers, agricultural producers, banks and the Social Security Fund (CSS), According to the official information.