Government Projects 5% Growth For The Panamanian Economy In 2025
Date
10/5/2024 11:15:18 PM
(MENAFN- Newsroom Panama)
The draft budget also includes a 2% inflation rate for next year and a reduction in the fiscal deficit, which will go from more than 4.5% in 2024 to 3% in 2025. According to estimates from the Ministry of Economy and Finance (MEF), the Panamanian economy will grow by 5% in nominal terms in 2025 and 3% in real terms, after a 2024 characterized by a slowdown in the production of goods and services, impacted by several factors. The Minister of Economy and Finance, Felipe Chapman, indicated that, in addition to the 5% growth in GDP for next year, inflation is also expected to be 2% which is the dream of every economy, especially the US with 2024 runaway inflation in March of 3.5% which is finally calming down as we get close to election time. “The global economic scenario remains uncertain in Panama, with real growth projected by the International Monetary Fund at 3.3% for 2025, influenced by global inflation and geopolitical tensions,” the MEF said in a statement, justifying the proposal for a feasible, credible and responsible budget that ensures financial and fiscal stability. International organizations and rating agencies point out that in 2025 the Panamanian economy will accelerate its growth again, although below the 7.3% recorded in 2023 and with less optimism than estimated by the MEF in the budget. Moody's estimates that the Panamanian economy will grow by 4.5% in 2025, as does Barclays, while the World Bank projects growth of 3.5%, the Economist Intelligence Unit of 3.3%, and the International Monetary Fund and JP Morgan of 3%. Despite the closure of the mine, when one door closes, another door opens. I do expect the mine to be open again in 2025 under an entirely new set of rules and regulations acceptable to the unions, the indigenous, and most everyone in Panama. It is just too much money to be turning away. There has to be a common solution.
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