Panama a Promising Horizon

Latin America as a whole has similar economies, especially in the countries known as “Emerging” which have healthier Public finances, investments and development strength in important economic sectors.

These favorable situations put this region at a distinct advantage compared with some major economies that are going through a period of recession while others are slowing. Economic prospects in the near future are very promising, according to international experts who have seen the crisis in Europe and the United States has made ​​this part of the world the focus of investors seeking new market niches.

On this subject we refer to Dr. Lourdes Dick , Rector of EGADE Busines School , who visited Panama to offer the conference “Global Economic Prospects and Challenges for Latin America.” In his presentation he explained the different trends that are posing major economic blocks, indicators of competitiveness and encouraging a role that Latin America could play in the recent world order.

He acknowledged that one of the main advantages is that our societies are focused on growth and stability they offer, making the main focus of external investment where it is not as secure to invest anymore.

Projections

The Economic Commission for Latin America and the Caribbean (ECLAC) in a recent report revealed that Latin America and the Caribbean in 2014 will experience an acceleration of their economic growth despite the uncertainties that still exist worldwide, especially difficulties facing Europe, the United States and China. According to the report Preliminary Overview of the Economy of Latin America and the Caribbean 2013, the region showed growth around 4.1%, driven mainly by the recovery of the economies of Argentina and Brazil and the maintenance of the dynamic demand internal in several countries.

Latin American and especially Panama, ended the year with an expansion of its gross domestic product (GDP) of 3.1%, higher than expected global growth ( 2.2%). Dieck predicts that many countries in Latin America will be able to grow between 6 and 7 % and Panama better yet, as the isthmus will continue to lead and taking advantage it possesses as the Panama Canal, infrastructure, services, tourism and transportation among others. Observers believe this will be the fastest growing sectors and that has spilled on the others, as a multiplier effect.

Panama as a center of commerce, transportation and logistics still need to leverage more, we need a well-designed plan where we are going to moderate the economy after the boom, which is now happening. When stabilized not to suffer the consequences as is occurring in other nations, because national policies are sometimes very short-term and there is a medium- and long-term concern.

He added that Panama, have all the ability to leverage its experience and start building strong links with companies in other parts of the world to see the country as a logistics center and also where you can invest to produce and hence launch products and services to other South, Central and North American countries.

Weaknesses

While a promising horizon, Latin America is pulling low note on competitiveness , especially skilled labor which limits the arrival of multinationals. In this sense , structural reforms are needed to improve productivity and competitiveness. The expert pointed out that the priority should be on education. Each country should review its educational system and do what is necessary to improve the quality and access of the population, because this is the key to increase the productivity of labor and provide a decent standard of living .

He added that other reforms in some countries but that serious about fiscal matters , in order to obtain more resources to be invested in the social sector and reduce the gap between rich and poor. According to ECLAC’s Preliminary Overview , Panama remains the fastest growing economy in the region.

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