The International Monetary Fund (IMF) says that Panama’s economy may be getting back on its feet in 2020.
“We see that there is a clear recovery in the economy. We expect that the economic growth for this year will be of the order 4.8 percent,” said head of mission Alejandro Santos, who also predicted that inflation will remain under control, around 1 percent.
The multilateral agency came to its conclusion following an on site-evaluation of what Panama’s Ministry of Economy and Finance (MEF) calls prudent management of public finances for fiscal discipline.
As part of its economic recovery plan, Laurentino Cortizo’s government paid off $1.58 billion in accumulated debt after taking office in July 2019. The government is also putting forth a plan to increase public investment to boost productivity for all Panamanians.
In a statement, the MEF said that as a result of good financial management, the IMF estimates that the Panamanian economy in the medium term will grow at a rate of 5.5%.