This 2014 Article IV Consultation highlights that Panamaas economic performance remains buoyant. Real GDP growth averaged about 8.5 percent over the past decade, the highest in Latin America, supported by an ambitious public investment program, and accompanied by strong reduction in unemployment, poverty, and income inequality. After exceeding 10 percent in 2011a2012, growth slowed to 8.4 percent in 2013 reflecting mainly a decline in Colon Free Zone activity and in Canal traffic. Growth is expected to remain strong over the medium term. Inflation is moderating, owing to the deceleration of international food and oil prices. The baseline outlook is favorable, with moderate risks.As a consequence, the expansion activity slowed down and then halted completely for two weeks in February 2014. ... First, tighter fiscal policy in the near term will help rein in domestic inflationary pressures and prevent them from becominganbsp;...
|Title||:||Panama: 2014 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Panama|
|Author||:||International Monetary Fund. Western Hemisphere Dept.|
|Publisher||:||International Monetary Fund - 2014-06-09|