Three percent growth seen

PANAMA. After a a positive report on Panama´s economic growth, the Finance Minister Alberto Vallarino called for caution.

The Economic Activity Monthly Index (IMAE) registered a.31 percent growth in June after two months of dipping negatively.

“We must be positive, but not leave caution aside”, said the Minister.

The IMAE's report came out coinciding with the announcement by international organizations that the global economical crisis has come to an end.

The sector that registered most growth between January and June of 2009 was construction, up 11.27 percent.

Electricity and water grew 5.94 percent, transport, storage and telecommunications 4.8 percent.

Mining rose 4.78 percent and education increased 3.04 percent.

The report also registers the sectors that were on a downward trend in June.

Agriculture decreased 8.83 percent, commerce, 8.42 percent; fishing, 7.52 percent.

Real estate fell 2.5 percent; manufacturing 1.14 percent, and hotels and restaurantssjowed a 0.44 percent decrease.

However Carlos Vallarino, the nation's comptroller, seemed to be more upbeat than the Finance Minister, noting that the June report predicts a stabilization and growth for the second half of the year.

He also says that the canal expansion project and the sanitation of the bay will give an extra impulse to Panama's economy.

The authorities stick by their prediction of a 3 percent overall economic growth for the year.

Domingo Latorraca, a Deloitte associate director, agrees with the official stance.

“ In Panama's case, I think we have gone through the worst already and little by little, the economy will become more dynamic and strengthen in the beginning of next year” he said.