Moderators Moderator_02 Posted August 2, 2021 Moderators Share Posted August 2, 2021 Quote Corruption and conflicts of interest recovery obstacles Posted 01/08/2021 Corruption and conflict of interest are the biggest obstacles to achieving a post-pandemic sustainable economic recovery says Panama’s Chamber of Commerce, Industries and Agriculture(Cciap) which has relaunched its Respect My Future campaign. “But this process requires the strengthening of Panama’s foundations and its constitutional, institutional, and social principles," says the Chamber. The campaign has the purpose of raising awareness and rescuing civic and moral values and has the support of the National Commission for Civic and Moral Values and the Ecumenical and Interreligious Committee of Panama, reiterated the Cciap, in its weekly newsletter. According to the Cciap, #RespetaMiFuturo focuses on respect, as an inescapable condition for any country that seeks to advance. Respect, in turn, encompasses values such as ethics, freedom, leadership, loyalty, tolerance, inclusion, justice, honesty, equality, equity, the group emphasized. "If as a union we have decided to protect the campaign, it is because we are convinced that the main threats to social and economic reactivation are corruption and conflicts of interest, which tarnish positive works and good examples," it added. The campaign has the support of the mass media and opinion leaders in the country. https://www.newsroompanama.com/business/corruption-and-conflicts-of-interest-recovery-obstacles-1 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted September 18, 2021 Moderators Share Posted September 18, 2021 Quote Panama GDP expands 10% in first semester Posted 17/09/2021 Panama's gross domestic product (GDP) expanded by 10% in the first half of this year, compared to the same period in 2020, when the country's economy was semi-paralyzed due to measures to curb the COVID-19 pandemic which ultimately resulted in a 17.9% collapse of the indicator that year. The National Institute of Statistics and Census (INEC) reported January and June the GDP "reached a cumulative growth of 10.0%", with a significant expansion of the indicator in the second quarter (40.4%) in contrast with the result of the first quarter (-8.5%). In the second quarter, the Quarterly Gross Domestic Product (GDPT) reached $9,124.9 billion, an increase of $2,627.8 billion compared to the same quarter of 2020, specified the INEC, a body attached to the Comptroller General's Office. "For the second quarter of 2021, mitigation measures and the vaccination process have been allowing health authorities to reduce or eliminate the restrictions established to contain the pandemic, helping economic activities begin their recovery process", explained the statistical entity. It specified that the activities related to the domestic economy that had a positive performance in the second quarter were construction; transport and communication; trade; government services; health and real estate and business, among others, while financial services showed decreases. The items related to the external economy that grew were "exploitation of mines and quarries, by boosting the economy with the production of copper concentrate by 493.3%; and the Panama Canal, with an increase in its toll revenues by 20 2%, mainly those related to the transit of Neopanamax vessels at 21.5% ". Port operations also expanded as a result of the greater movement of TEU containers by 17% and re-exports from the Colon Free Zone by 62.4%, while exports of bananas, pineapple, and fish showed decreases. After the fall of 17.9% last year, international organizations and risk rating agencies have predicted that Panama's GDP will grow between 8% and 12% this year. Local analysts warn that growth will be a "rebound effect" driven by sectors such as mining and not by the reactivation of the domestic market, because the public and private investments necessary to lift the sector have not been made, for which they foresee that unemployment will continue at around 20% and informality at more 52%. Sectors such as hotels and restaurants; the manufacturing industry; financial intermediation; agriculture, and real estate, business and rental activities continue to be hit hard. https://www.newsroompanama.com/business/panama-gdp-expands-10-in-first-semeter Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted October 8, 2021 Moderators Share Posted October 8, 2021 Quote Panama economy will grow 9% this year - World Bank Posted 07/10/2021 Panama’s economy will grow 9.9% this year, according to a new report published by the World Bank. According to this forecast, Panama would be among the countries with the highest growth rate in Latin America, behind Guyana (21.2%), Peru (11.3%), and Chile (10.6%). For next year, the international organization's estimate for Panama is a growth of 7.5%, also among the highest in the continent. In a press conference with the region's media, William Maloney the Bank's chief economist for Latin America and the Caribbean briefly referred to the evolution of the Panamanian economy. He said that the country received strong blows in sectors such as tourism and air transport, and stressed the importance of reactivating them. He also noted that there are similar challenges to the rest of the region, such as greater integration, improving infrastructure, and the quality of education to improve growth rates in the medium term. Latin America and the Caribbean as a whole will grow 6.3% in 2021, which will not be enough to completely reverse the 6.7% contraction recorded last year. The agency noted that to achieve the growth rate necessary to move the region forward and reduce social tensions, reforms must be urgently carried out in the areas of infrastructure, education, health, energy policy, and innovation, in addition to facing the new challenges of climate change. https://www.newsroompanama.com/business/panama-economy-will-grow-9-this-year-world-bank Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted October 11, 2021 Moderators Share Posted October 11, 2021 Quote Job recovery must be common obsession - business chamber Posted 10/10/2021 The recovery of jobs in Panama must be a common obsession says the president of Panama’s Chamber of Commerce, Industries and Agriculture Jose Ramón Icza in the Chamber’s weekly bulletin. Small and medium-sized entrepreneurs need to be able to start their operations after 18 months of mobility restrictions and activities closed due to the Covid-19 pandemic. "You have to act as soon as possible," he said. He recalled that the restrictions have finally been almost completely eliminated, "which will allow the reconstruction of the business fabric and the reactivation of its main asset: human resources.". However, this process will be accelerated "as long as" access to the necessary supports is available. "Hence, the Chamber of firmly supports the immediate implementation of the multi-sector guarantee program agreed upon at the work table between the business sector and the Government." The union requested the immediate implementation of the joint venture program approved in May by the Executive Branch for the Panamanian tourism sector. He recalled that at the beginning of the pandemic when the restriction measures were implemented, the Government of President Laurentino Cortizo made available to the business sector, especially small and medium-sized companies, funds provided by different multilaterals. "However, in all this time their use has been limited, given that the conditions established to access them do not take into account the financial situation of the companies in an environment of prolonged closure," emphasized Icaza. In a tour that the Chamber has made throughout the country, it has met with entrepreneurs of small and medium-sized companies, who have confirmed the difficulties they have in accessing these credits, revealed Icaza. He added that everyone agrees that the demands to obtain these loans obviate the current reality caused by the pandemic. "Given this situation, it is necessary to create a sense of urgency, these credits must be implemented immediately, taking into account the reality described above," he said. https://www.newsroompanama.com/business/job-recovery-must-be-common-obsession-business-chamber Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted October 24, 2021 Moderators Share Posted October 24, 2021 Quote Index of economic activity up 12.48% - hotels lag Posted 23/10/2021 The monthly index of economic activity (Imae) registered a growth of 12.48% between January and August 2021 compared to the same period of the previous year, reported the National Institute of Statistics and Census. The result is a consequence of the higher level of openness this year, which is compared with the months of greater mobility restrictions last year, at the beginning of the pandemic. Activities such as transportation, storage, and communications register growth, but there are segments, such as hotels, that are at negative rates. https://www.newsroompanama.com/business/index-of-economic-activity-up-1248-hotels-lag Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted November 24, 2021 Moderators Share Posted November 24, 2021 Quote Panama economic activity up near 15% in 9 months Posted 24/11/2021 The monthly index of economic activity (IMAE) of Panama between January and September grew by 14.94%, compared to the same period in 2020, which shows "the recovery process after the impact" in the productive apparatus of the health emergency due to the covid-19 pandemic. In September the IMAE, expanded by 18.02%, compared to the same month of the previous year, according to data from the National Institute of Statistics and Census (INEC ) of Panama released Tuesday. In the first semester of this year, the Panamanian gross domestic product (GDP) expanded by 10%. International risk rating agencies and agencies foresee that the indicator will grow between 8% and 12% in 2021 The expansion of the IMAE in the three quarters of the current year was driven by the mining industry, due to the export of copper ore and its concentrate, as well as construction, the execution of public investments and the gradual reactivation of many private projects private, said the INEC. Economic activity showed a positive rate in indicators such as re-exports in the Colon Free Zone, and local retail and wholesale trade, as well as transportation, storage and communications services, due to the good performance of the Panama Canal and the movement of containers in ports. On the other hand, hotel services continued to show negative rates, especially due to the low influx of tourists, hikers and passengers in transit, the statistical entity said. https://www.newsroompanama.com/news/panama-economic-activity-up-near-15-in-9-months Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted November 25, 2021 Moderators Share Posted November 25, 2021 Quote Panama exports on track to pass $3 billion mark by year-end Copper destined for China and South Korea is Panama's major export. Posted 24/11/2021 Panamanian exports are on track to exceed $3 billion in 2021, after adding $2.586 billion dollars in the first three quarters of the year. Roberto Tribaldos, president of the Panamanian Association of Exporters (Apex), commented that it would be the first time in history that Panama exceeds the barrier of $3 billion in the export sector. Of the $2,586 billion, $2,031 billion relate to the shipment of copper extracted from the open-pit mine located in the Donoso mountains, Colón province. Excluding copper, the rest of the export basket closed with an increase of 13.2% to add $555 million Tribaldos commented that non-food products such as rum, paper, and cardboard, lubricating oils, medicines, and wood have registered growth of more than 40%, while others such as bananas, shrimp, palm oil, cocoa beans, pumpkin, and watermelon also registered a positive behavior. In the case of coffee, the product has not yet recovered from the weather conditions recorded in November last year. China, South Korea, Spain, Japan, Bulgaria, the United States, Germany, and the Netherlands are the main destinations for Panamanian exports. In the case of copper, 60% of shipments are destined for Chinese processors, while products such as fruits are sent to the Netherlands. https://www.newsroompanama.com/business/panama-exports-on-track-to-pass-3-billion-mark-by-year-end Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted November 26, 2021 Moderators Share Posted November 26, 2021 Quote Panama shopping centers on the rebound Posted 25/11/2021 Panama shopping centers are experiencing traffic, between 80% and 90% compared to what they had in 2019 when, they had sales of approximately $400 million and are now at $300 -$320 million which "is very positive" says Nadkyi Duque president of the Panamanian Association of Shopping Centers (Apacecom), but he warned of the possible increase in prices due to the global crisis that in the supply chain as a result of the covid-19 pandemic. He said it is very encouraging that in a short time of almost a year after having reopened, we have these figures," the result of the commitment made by private companies and the effectiveness of the government with vaccination and the behavior that users of businesses have had. "It is the result of the commitment acquired," he said. On Monday, November 21, the Minister of Commerce and Industry of Panama, Ramón Martínez, affirmed that the vaccination plan has been a fundamental piece for the economic recovery of the country. Martínez pointed out that during the first semester of 2021 an economic growth of more than 10% was observed and a growth of 12% is projected at the end of this year (2021). In addition, he added, that through the Association of Shopping Centers an increase of over 25% was observed in sales; and from the point of view of the banks, there has also been an increase in bank loans of the order of 20%. https://www.newsroompanama.com/news/panama-shopping-centers-on-the-rebound Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted November 28, 2021 Moderators Share Posted November 28, 2021 Quote Dark clouds over Central America Black Friday Posted 27/11/2021 Posters with offers of up to 70% on selected merchandise, in Central America's shopping centers but few shoppers are taking the Black Friday bait. In Albrook Mall, the largest shopping center in Panama, there were people walking, but in stores, there were few buyers, a very different image from other years, in which shoppers arrived in massive numbers waiting for the shops to open. Panama is experiencing an acute economic crisis from the covid pandemic, with unemployment currently hovering around 14.5% after having reached 18.5% in 2020. Panama is a shopping destination for many residents of Central and South American countries and for five years in October it has been celebrating the "Panama Black Week". In Costa Rica, the day passed without a major influx of people to the shops, but most of the stores implement a "black weekend" and even a " black November "with promotions that go beyond a single day. The pandemic has also forced stores to adapt and make online sales one of their strengths. Traders have said they expect sales to exceed 2020, but not previous years. In Nicaragua, only the large chains exhibited offers in shopping centers, where there were people walking and buyers with the odd bag, while in popular markets the attendance was normal. In El Salvador, and Guatemala Efe found a good influx of people walking through the corridors of shopping centers but not in stores. In Honduras, Black Friday, was a precursor to Sunday’s election and sales have been "low," as the salesperson of an electrical appliance store told Efe, but In Tegucigalpa, some supermarkets register had long lines as customers stocked up on food, due in part, to the electoral uncertainty. "It is better to be prepared, we do not know what will happen after Sunday's elections," said Carmen Salinas, who made a long line to enter a supermarket south of the Honduran capital, told Efe. In Sunday's elections, more than 5 million Hondurans go to the polls to elect the successor to Juan Orlando Hernández, who was re-elected in the 2017 elections, in which the opposition alleges that there was "fraud." https://www.newsroompanama.com/news/dark-clouds-over-central-america-black-friday Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted December 1, 2021 Moderators Share Posted December 1, 2021 Quote Maritime freight rates will hike consumer prices worldwide Posted 30/11/2021 The excessive rise in maritime freight rates since the second half of 2020, due to the lack of container ships to transport the goods, will bring a worldwide increase of 11% in the cost of electronic, optical, and computer items, as well as 10% in furniture, clothing and leather, among others, says the United Nations Conference on Trade and Development (Unctad). The Unctad predicts that the effect of the increase in maritime freight will be greater in the smaller economies, which depend to a great extent on imports to satisfy their consumption. A purely importing country like Panama, which only from January to December 2019 - 2020 imported products for a FOB value of $7,367.5billion and exported merchandise for $1,725.5 billion according to official figures The effects of the container crisis already beginning to register in the r agricultural sector. A ton of fertilizers such as urea, for example, costs $1,000 dollars in the port of Cristóbal, when just four months ago it was priced at $400 dollars in the same port, and to this, we must add the cost of transportation, handling, and land freight, indicated Lucas Sánchez, from the National Association of Agricultural Inputs and machinery Distributors (Andia). Machinery and fertilizers used in the agricultural sector will be impacted by the container crisis. Used to apply nitrogen to the soil, urea is sold to the producer for about $48 per quintal, when just a few months ago it cost $24, explained a merchant dedicated to the sale of fertilizers, who stated that the current situation does not allow a lower price. Sánchez was emphatic in clarifying that the members of the association he represents at no time intend to speculate with the prices of fertilizers since it is a normal process in the commercialization of any product. As an example, he added that if the price of leather and heels goes up for a shoe manufacturer, the final price will also increase. https://www.newsroompanama.com/business/maritime-freight-rates-will-hike-consumer-prices-worldwide Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted December 7, 2021 Moderators Share Posted December 7, 2021 Quote Panama new car sales rebounding Posted 06/12/2021 The new car market in Panama is reviving in 2021, with sales that exceed the expectations of the industry itself. Between 2019 and 2020, the market contracted by 49.7%, after going from 47,866 sales to 24,091. Virtually half as many cars were sold in 2020 as in 2019. This year, until November 33,920 new vehicles have been sold, according to figures from the Association of Automobile Dealers of Panama (Adap) , a figure that represents an increase of 67% compared to the same period in 2020 and a drop of 23% compared to 2019 data. The president of Adap, Anthony Salerno, made the caveat that in 2019 the Panama Motor Show car fair was held in person in October and this year it was held virtually between December 1 and 5 . Taking into account that the average number of cars sold each month in 2021 is 3,084 and the momentum that the fair usually gives, the industry expects to comfortably exceed 37,000 units sold at the end of the year, thus exceeding the previous expectation of 35,000. If this estimate is met, in one year more than half of the ground lost in 2020 will have been recovered, and the industry would close with some 10,000 fewer cars sold than in 2019, a year that was marked by the slowdown in the economy. The data reflects that local demand is recovering, while the main concerns of the industry focus, according to Salerno, on the tensions in the supply chain that affect a product of which Panama is an importer. https://www.newsroompanama.com/business/panama-new-car-sales-rebounding Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted December 8, 2021 Moderators Share Posted December 8, 2021 Quote Chamber of Commerce spearheads “Buy Panama” program Posted 07/12/2021 The recovery of the consumer confidence index, and the 43.3% increase in the import of goods, has prompted Panama’s Chamber of Commerce, Industries and Agriculture (CCIAP) to spearhead a campaign that seeks to encourage consumption and sales in local shops that generate employment in the country. With the slogan "This Business is Panama, Buy Local", the president of the union, José Ramón Icaza, says that they seek to encourage the recovery of the commercial sector, especially mass consumption, during the busiest month of the year. "If local commerce is supported, the reactivation of jobs and the generation of new jobs is promoted." He argued that with thecampaign they also want to support artisans and entrepreneurs; as well as the micro, small and medium-sized companies that generate a lot of employment. Some 31 companies are participating in the program and although it was conceived for this month, Icaza indicated that they are analyzing extending it to other months given the acceptance they have had. Icaza added that with the vaccination results, the development of the commercial sector for 2022 has favorable prospects, but they are concerned about the impact rising freight rates may have on the tertiary sector and on the prices of imported products. https://www.newsroompanama.com/news/chamber-of-commerce-spearheads-buy-panama-program Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted December 24, 2021 Moderators Share Posted December 24, 2021 Quote Panama exports near $3 billion historic high SHRIMP exports increased 12%. Posted 24/12/2021 In the first 10 months of 2021, Panama exports reached $2. 816 billion close to a historic high for the year. Of this total, 77% corresponds to copper, extracted from the Donoso mine, in the province of Colón. The rest comes from bananas, seafood, coffee, clothing, rum, and industrial products, which have registered a positive behavior since 2020 despite the border closures caused by the pandemic. https://www.newsroompanama.com/news/panama-exports-near-3-billion-historic-high Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted December 30, 2021 Moderators Share Posted December 30, 2021 Quote 18 multinationals establish HQ’s in Panama Posted 29/12/2021 While Panama continues its battle with covid-19 the country continues to attract companies seeking to establish operations and The Ministry of Commerce and Industries (MICI) reports that, 18 licenses have been approved for the establishment of headquarters of multinational companies (SEM). The number exceeds the 17 that received the go-ahead last year. Jeannette Díaz Granados, general director of SEM, commented that there are 4 other applications that under review to determine if they comply with the requirements of Law 41 of 2007. Among the requirements that companies seeking to obtain the benefits of Law 41 must meet are those related to assets that must be equal to or greater than $200 million. If the company does not comply with this point, it can also apply for the SEM license if it verifies that it provides services to at least seven affiliates, subsidiaries or associated companies. Díaz Granados indicated that the investment of the 18 new licenses approved reaches $37.8 million, exceeding the $12.5 million of the estimated investment last year and the $9 million of 2019. In total, there are 178 active licenses for multinational company headquarters representing a combined investment of $1.2 billion. Automotive, aeronautics, manufacturing, entertainment, marketing, advertising, research, consumer goods and personal care, food, and beverages, textiles, footwear and jewelry, transportation and logistics, technology, telecommunications, basic and industrial chemicals, pharmaceuticals, call centers, consulting General, financial services, insurance, energy, oil and gas, engineering and construction, are the sectors where SEM companies established in the country operate. https://www.newsroompanama.com/business/18-multinationals-establish-hqs-in-panama Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted January 16, 2022 Moderators Share Posted January 16, 2022 Quote Panama GDP growth predicted at 12.4% Posted 15/01/2022 The Economic Commission for Latin America and the Caribbean (ECLAC) projected that the growth rate of the Gross Domestic Product (GDP) in 2021 for Panama will be 12.4%, the third nation in Latin America to exceed 12%. According to the report, "Preliminary balance of the economies of Latin America and the Caribbean" revealed on January 13, Panama of the countries of the region is surpassed in the first two positions by Guyana and Peru, with 18.5% and 13.5%, respectively. Meanwhile, Chile, the Dominican Republic, and El Salvador will be the other countries that exceed the 10% threshold, with 11.8%, 10.4% and 10.0%, ranking from fourth to sixth position. In the report, ECLAC highlights that the region's growth dynamics during 2021 was "greater than expected at the beginning of the year." "The still favorable evolution of the international context —both with regard to financial conditions and the prices of basic products and world trade flows—, together with the increase in mobility in the countries and the progress in the processes of vaccination, has resulted in an increase in growth prospects for the current year," it said. https://www.newsroompanama.com/business/panama-gdp-growth-predicted-at-124 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted January 18, 2022 Moderators Share Posted January 18, 2022 Quote Panama Maritime Authority records best income Posted 17/01/2022 The Panama Maritime Authority (AMP), achieved at least $186.1 million in self-generated income a 30% growth compared to 2020, and the largest self-generation achieved by the AMP in its history. The generation of the revenues comes from the growth of the fleet of vessels of the Panamanian Merchant Navy, the renewal of marine licenses, port services, incentives for the generation of new concessions and operating licenses, effective management in consular collection, among others. The entity has also achieved a budget execution in investments that totals 97% ($47 million) and in operation reaches an execution of 93%, which represents $155 million. Of the $155 million, only $45 million were required for its operation and the rest, some $110 million, were allocated as contributions to the National Treasury. Maritime services represent one of the largest engines of the country's Gross Domestic Product and income to the National Treasury, which is reflected in the $2,763 million that the entity has collected since 1998, with the creation of the AMP. https://www.newsroompanama.com/business/panama-maritime-authority-records-best-income-1 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted January 23, 2022 Moderators Share Posted January 23, 2022 Quote Panama warned to remain neutral in US-China tensions Posted 22/01/2022 Panama will take longer to recover from the recession caused by the pandemic than other countries in Latin America. Says the latest report of The Economist Intelligence Unit, published in January. Assuming moderate global economic and trade growth, "we expect Panama's domestic product (GDP) growth to stabilize at a more steady pace, averaging 4.1% per year between 2023 and 2026," according to the analysis. Private consumption and investment will drive the economic recovery, but the scale and nature of the recession will hamper growth prospects. Vaccination “Vaccination rates are quite high, more than 90% of adults have received at least one dose, and we do not expect lockdown measures that would seriously disrupt the economic recovery.” For 2022, the report calculates that Panama's GDP growth will be 6%, after an estimate of 14% for the end of 2021 and a drop of 17.9% in 2020. The analysis highlights as an important fact that household income was greatly affected by the stagnation of economic activity; estimating an average unemployment rate of 15% at the end of 2021, but with a tendency to gradually decrease. According to statistics from the National Institute of Statistics and Census, as of October 2021, there were 220,000 unemployed in the country and another 677,000 informal workers. For The Economist, with economic activity still depressed and with permanent damage to company balance sheets, private consumption will not fully recover until 2023. Difficulties In fiscal matters, the report indicates that the government would have difficulties complying with the deficit ceilings described in the fiscal responsibility law. “The medium-term targets will prove more challenging than the 2021 target of 7.5%. We expect spending pressures to ease gradually,” making consolidation difficult. They expect the non-financial public sector deficit to drop to 2.1% of GDP by 2026, supported by production revenues at the Cobre Panamá mine. The analysis mentioned a vital fact related to the Canal and decision-making that influence diplomatic and commercial relations between Panama and other countries. “The Panama Canal handles 6% of world merchandise trade; this makes the country geopolitically important, so staying neutral amid US-China tensions will be crucial.” https://www.newsroompanama.com/news/panama-warned-to-remain-neutral-in-us-china-tensions-1 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted January 29, 2022 Moderators Share Posted January 29, 2022 Quote Fitch revises Panama rating from negative to stable Posted 28/01/2022 Fitch Ratings affirmed Friday, January 28, Panama's risk rating at BBB -, and revised the outlook from negative to stable. Panama, therefore, maintains the investment grade with the three major international rating agencies reports La Prensa. The outlook revision reflects the continued improvement in the fiscal position and a better-than-expected recovery from the initial shock of the pandemic. The agency points out that its fiscal expectations have improved, as well as confidence in the authorities' ability to successfully adjust the fiscal deficit. Fitch expects the public debt to gross domestic product ratio to have a very gradual downward path and expects the government to meet the 4% deficit limit established for this year in the Fiscal Social Responsibility Law. For the next exercises, compliance will be a greater challenge it said. In 2020, the agency lowered Panama's sovereign note to BBB-, with a negative outlook, and therefore a further downgrade would have led the country to lose its investment grade, a good payer seal that allows obtaining financing in better conditions. https://www.newsroompanama.com/business/fitch-revises-panama-rating-from-negative-to-stable Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted January 29, 2022 Moderators Share Posted January 29, 2022 Quote Industrialists forecast Panama economy back to pre-pandemic level in 2023 Posted 28/01/2022 The Panama Union of Industrialists (SIP) projects that the Panamanian economy will grow by 7%, this year which will allow the generation of 10,000 new jobs. "The country's economy is in the process of recovery," said SIP president Luis Frauca, who estimated that it will not be until 2023 when the figures that existed before the pandemic (2019) will return. Among the activities of the industrial sector that have had a good economic performance and that are projected to continue contributing to the country are: mines and quarries, cement production, the slaughter of cattle and pigs, and dairy production. "We know that all activities are having an upturn and those that have not yet stabilized will be doing so in the coming quarters," said Frauca. https://www.newsroompanama.com/business/industrialists-forecast-panama-economy-back-to-pre-pandemic-level-in-2023 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted February 5, 2022 Moderators Share Posted February 5, 2022 Quote Business organizations seek action after 4 months of talks Construction and tourism were high on the adgenda of talks Posted 04/02/2022 After working for more than four months, coordinating dozens of meetings between more than 125 businessmen and officials, and approving 43 of an expanded total of 51 proposals for the country's economic reactivation as a result of the pandemic, the National Council of Private Enterprise ( Conep) is waiting for the Government to convene a monitoring commission to analyze and promote the agreements reached. “It is urgent that we move forward, but the government has not given us a date for when the call for follow-up will be made,” Rubén Castillo, president of Conep, told La Prensa. The urgency that Castillo speaks of is generated by the closure of companies that are reported, in addition to the levels of unemployment, with 220,000unemployed in the country, and another 677,000 informal workers, which reflects the deterioration that the economy has suffered Since April 2021, businessmen have warned of the labor crisis, due to confinement and the pandemic, for which it was necessary to identify and implement dynamic proposals that would affect the gross domestic product (GDP), but particularly in reactivating jobs. Conep and Apede (Panama Association of Business Execs) warn that it is urgent to evaluate the reactivation plan They delivered to President Laurentino Cortizo the document that contains the proposals for economic reactivation, as a result of the work that the high-level public-private commission had done. Second step Now the problem is the second step, which is follow-up, but this stage shows stagnation, Castillo said. “The point is that there is an internal issue in the Secretariat of Goals, which is now the control tower in the Presidency, where all the agreements are being evaluated. They have said that they are going to make a call to reactivate the commission for monitoring each of the points. But it seems to us that it is time for this to move forward, and for it to move forward quickly”. Elisa Suárez de Gómez, president of the Apede, supports Castillo's call and warns that there is much concern about the number of companies that will not withstand the lethal effects of Covid-19 on the economy. In this sense, it refers to the statistics compiled last week by the National Competitiveness Center (CNC), which reflect that in 2020 some 18,965 companies canceled their operation notice, while in 2021 cancellations totaled 24,000 The CNC data, based on the statistics of Panama Emprende, may include cancellations of notice of operations due to the definitive closure of a company, but may also include cancellations due to other factors such as mergers, purchases, or entrepreneurs who left their projects to return to work in a company. Suárez warns that the unemployment figures confirm the enormous challenge facing a country like Panama, which is going into debt to provide more social assistance, which although necessary, must go hand in hand with a strong strategy to generate employment. According to the agreed plans, an investment of $4 billion is required in different sectors to generate 140,000 direct jobs and 68,000 indirect jobs. Among the proposals put forward, there are some of a transversal nature and multisectoral effects, in addition to other sectoral ones, in the energy, tourism, financial, industry, and construction sectors. Follow-up When Conep delivered all the work done, it indicated in that document that it could not be interpreted under any circumstances that the work had concluded, nor that the spontaneity of the economy would allow us to get out of the crisis. They specified that "the task to be followed must focus on the follow-up of the entire process of implementation and monitoring of the agreements reached with a practical approach towards the best interests of the country." https://www.newsroompanama.com/news/business-organizations-seek-action-after-4-months-of-talks Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted February 14, 2022 Moderators Share Posted February 14, 2022 Quote Panama’s labor crisis – over 100,000 seeking work Posted 14/02/2022 Panama is facing a historic labor crisis, with over 100,000 people looking for a job and as employment consultant René Quevedo points out. “All the employment expansion in the last two years has been in the public sector. The economy is not generating new jobs.” The rating agency Fitch Ratings warned in its latest report of the weakness of domestic demand and cited two sectors in particular: construction and retail trade, which represent 27% of the country's jobs. This largely reflects the difficult situation of thousands of people to get a formal and full-time job. Data from the Comptroller General indicates that as of October 2021 there were 108,975 people looking for work. Of this total, 57,791 were women and 51,184 were men. The vast majority are between the ages of 20 and 24. Between 2019 and 2021, 238,000 private formal jobs were lost (including the 30,000 workers who were reactivated and then laid off), while 71,000 civil servants were added. In January, 463,000 people received the so-called Vale Digital subsidy to buy food. https://www.newsroompanama.com/news/panamas-labor-crisis-over-100000-seeking-work Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted February 20, 2022 Moderators Share Posted February 20, 2022 Quote Sharp drop in Panama construction activity Posted 18/02/2022 Panama’s Construction Industry Chamber (Capac) reports "a sharp drop" in its contribution to the country’s Gross Domestic Product (GDP). "What is reflected in the contraction of investments and a direct effect on the increase in unemployment in the sector," the union said in a statement. According to Capac, official figures from the National Institute of Statistics and Census (INEC) indicate that the participation of the construction sector in GDP in 2019 -before the pandemic- was 14.5%. In 2020 -in the middle of the pandemic- it was 5.5% and there was a slight recovery in the third quarter to 8.8%. “A comparison of contributions to GDP by the construction sector indicates that in the third quarter of 2019 it reached $1,551.8 billion, in the same period of 2020 $450.2 million and in 2021 it was placed at $907 million, well below the figure before the pandemic, ”says the organization. Another important indicator, says Capac, is that of the investments in construction declared to obtain approval of plans in the district of Panama and half a dozen of the main districts of the country. Currently the construction sector occupies 8.2% of the economically active population, it adds. https://www.newsroompanama.com/business/sharp-drop-in-panama-construction-activity-1 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted February 25, 2022 Moderators Share Posted February 25, 2022 Quote Panama remains on EU list of non-cooperative countries Posted 24/02/2022 The Council of the European Union (EU) kept Panama on its list of non-cooperative countries and territories for tax purposes, in an update of the list published on February 24. In addition to Panama, the list includes Fiji, Guam, US Virgin Islands, Palau, Samoa, American Samoa, Trinidad and Tobago, and Vanuatu. "The Council regrets that these countries and territories continue not to cooperate for tax purposes and invites them to collaborate with the Code of Conduct Group to resolve the problems detected," said the European body in a statement, which added that in the list or annex I “Only those countries and territories that have either not engaged in a constructive dialogue with the EU on tax governance, or have not fulfilled their commitment to introduce the necessary reforms, are listed.” The Council noted that Panama is not rated as broadly compliant by the Global Forum on Transparency and Exchange of Information for Tax Purposes with regard to the exchange of tax information upon request and that the country has an alien source income exemption regime that is harmful. https://www.newsroompanama.com/news/panama-remains-on-eu-list-of-non-cooperative-countries Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted March 2, 2022 Moderators Share Posted March 2, 2022 Quote After talks Panama Government lags in execution INEXPLICABLE delay in payment for government construction projects. Posted 28/02/2022 Both the private and public sectors have sat down at planning tables such as the Public-Private Reactivation Table and the Bicentennial Pact, but "Despite this, the National Government has shown little capacity for execution," said Panama’s Chamber of Commerce, Industry and Agriculture (Cciap) in it Sunday bulletin. The Chamber claimed that "in the construction sector there is an inexplicable delay in accounts payable to contractors." The Cciap, said the Office of the Comptroller General must fulfill its supervisory role, "but without becoming a bottleneck in activity." At the same time, the organization pointed out that it is necessary for the State to reactivate public projects and speed up the execution of those that are in process. The group also specified that the Tourism Authority of Panama has to execute the Sustainable Tourism Master Plan; while it is up to the Tourism Promotion Fund to execute the international campaign. "In addition, the guarantee fund for $300 million with the participation of the Government, private banks and the Inter-American Development Bank must be implemented as soon as possible in order to refinance credits and grant new loans for the sector," The Cciap highlighted the importance of providing support to micro, small and medium enterprises, through a multi-sector shared risk fund. https://www.newsroompanama.com/business/after-talks-panama-government-lags-in-execution Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted April 9, 2022 Moderators Share Posted April 9, 2022 Quote World Bank predicts Panama growth at 6.5% this year Government turnkey projects are expected to fuel growth. Posted 08/04/2022 The World Bank predicts that Panama will grow 6.5% this year, which represents one of the highest growth rates for the region, and for 2023 and 2024, growth for Panama of 5% in both years. The growth trend of the economy will continue in the coming years, after the strong contraction of 17.9% in 2020, as a result of the restrictions imposed by the Government to contain the pandemic. The drop was partially offset in 2021, with a growth of 15.3% caused by the lifting of restrictions and increased economic activity. The Ministry of Economy and Finance of Panama estimates that this year it will be possible to recover the level of gross domestic product (GDP) prior to the pandemic. One of the Executive's commitments to achieve this convergence is the activation of construction through projects awarded under the turnkey model, and with a repayment scheme of 50% halfway through the work and the remaining 50% upon completion. Panama is recovering from the crisis caused by the pandemic, as is Latin America as a whole. After a 6.9% rebound in 2021, the region's GDP is expected to grow 2.3% this year and an additional 2.2% in 2023. Higher taxes “These modest projections place regional growth among the lowest in the world at a time when the region faces great uncertainties, such as the possible appearance of new variants of the coronavirus, an increase in inflationary pressure and the war in Europe, which threatens the global recovery,” according to the World Bank. The Washington-based agency calls for reforms to be put in place in favor of growth in infrastructure, education, and innovation, and for the most important investments to be financed through more efficient spending and higher tax revenues. https://www.newsroompanama.com/news/world-bank-predicts-panama-growth-at-65-this-year Quote Link to comment Share on other sites More sharing options...
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