Panama is the only country in Latin America that will grow above 6% in 2016, exceeding forecasts of expansion of the world economy. The forecast of the Inter-American Development Bank (IDB) to Panama is slightly surpassed by the performance of China.
That was highlighted in the report of the entity «Avoiding the storm: Policy Options for Central America and the Dominican Republic in an uncertain environment» which recommends to the Central American countries that savings in the current account for the fall in prices raw materials must be channeled to productive activities; and that should lower electricity costs and logistics, as well as strengthen education.
«In Panama and the Dominican Republic it is estimated that growth will exceed 6%, while El Salvador will achieve a lower rate of 2.5%, this would improve recorded in the last five years. All countries will reflect a higher than in Latin America as a whole dynamic, «says the report.» (See table)
It also stresses that the growth in the region will be driven by domestic demand, mainly in the activities of the sectors of construction and services, which are key to increasing productivity. »
The IDB predicts that Argentina, Brazil and Venezuela are the only Latin American countries that do not record an expansion of its gross domestic product.
The report estimates that the fiscal sector presented an average deficit of 3.4% this year, similar to the previous two years: «While there has been progress in fiscal consolidation in Honduras, Panama and the Dominican Republic in other countries yet this slope. As a result of the fiscal situation, the average public debt in the region has continued to increase, which is projected to reach almost 50% of GDP in 2016 «.