Panama prepared against crisis

PANAMA. Much has been said about the possible repercussions of the U. S. financial crisis in Panama, but some analysts believe the country is better prepared than ever to confront it.

The economist Horacio Estribi sustains that the impact of the financial crisis will be “very mild” in Panama. Panama is enjoying a fiscal surplus, has a solid banking system and foreign investments for this year add up to around $2.5 billion.

In addition, Panamanian businessmen have a clear vision of where the country is heading. During the next four years the mega projects like the widening of the Canal, the refinery, and the hydroelectric projects will be in their construction phase.

In the last 10 years, Panama has reduced its commercial dependence of the United States and exports from that country have fallen from 40% to 34%.For Estribi the crisis may represent an opportunity for Panama to capture new capital from international investors looking for greater rates of return.

There is no doubt that the crisis will in one way or another affect the country.

Panama’s GDP growth next year will likely be under the current 9%, but as the economy’s signals continue to be strong, some countries’ anguish can prove to open opportunities for Panama in other places such as Europe or Asia.