The IMF has predicted a 6% increase in economic growth for 2011 for Panama, summary by Juliette Passer

SUMMARY
by Juliette Passer
(Based on article from EL FINANCIERO Annex, LA PRENSA newspaper dated September 14, 2010 by Mario A. Muñoz)

When the Assemblymen talk about approving a record budget for 2011, it is crucial to find out where the financing is going to come from.

Panama’s 2011 budget will be 13 billion dollars as compared to other Latin American countries: Costa Rica’s is 11 billion, El Salvador is 3.7 billion and Paraguay is 8.284 billion.

According to the comments by economist GUSTAVO CHELLEW relying on the data from the Ministry of Economy and Finance - government revenue has increased by 4.8% in 2010, so real income increased by $337.7 million over same period in 2009. This is an increase of 15.8% up to July 2010. According to the foregoing, public finances have been consolidated and are, therefore, sound. This is the basis for sustainable economic and social development. This situation will allow the Government to maintain public policies seeking fairness in distribution of income. For example, there was a decrease in the income tax (Law 8 of 2010) that benefitted 90,000 employees earning less than $50,000 per year.

All the foregoing is based on expected income for 2011 and on a budget execution of 90% with a real economic growth of about 5% in the Gross National Product for 2011 similar to that of 2010. The banking system has recommended generating finances. Besides, personal consumption has increased by 6.8% which reflects the dynamics of economic growth for 2011.

The IMF has predicted a 6% increase in economic growth for 2011.