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PANAMA - WALL STREET & THE USA |
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The
future of Panama as a remarkable destination for foreign investment
and economic development in the global market. Panama is expected to
grow at an astounding 9% in 2009. There is a general consensus that Panama is a very safe place for international investment, and will continue to be so in the coming years. The President Ricardo Martinelli states that the importance of the international community to Panama and growing confidence in business investment there have fueled and supported the remarkable growth. The Finance Minister Hector Alexander notes that sectors including construction, transportation and communications, have grown at least 13 percent since 2005, with banking and tourism accounting for largest increases at nearly 17 percent and 22 percent respectively. In addition, Standard & Poor's Roberto Sifón Arévalo indicated that Panama has stable and positive prospects for 2009 and beyond.
Given the growth of the
Panamanian economy. Panelists agreed that the increased confidence
in and stability of Panama’s economy attracts investors from abroad
and stimulates growth. Panama is indeed a safe harbor in
confused times. U.S.-Panama Relations
Both Ambassadors
Federico Antonio Humbert Arias and William Eaton agreed that the
economic and political relationship between Panama and the United
States was solid and likely to grow stronger in the coming years.
Ambassador Humbert emphasized that U.S. investment in Panama
surpasses the total amount of investment in the rest of Central
America and that this tendency would continue. The ratification of
the U.S.-Panama Free-Trade Agreement would further strengthen this
relationship. Both ambassadors remained unsure whether this deal
would gain approval this year, but remain optimistic about a
positive result in the future. The Role of Infrastructure, Technology and Competition The Commerce Minister Alejandro Ferrer highlighted several specific examples of infrastructure projects and the role they played in Panama’s economy. Specifically, he spoke of projects such as the $1.5 billion dollar upgrade of the national harbor system, allowing capacity to increase from 4 TEUS (Twenty-foot Equivalent Units) to 6 TEUS and boosting Panama’s standing as a commercial hub. In addition, Ferrer discussed Panama’s interest in Occidental Petroleum building an oil refinery—a significant move that would sustain Panama’s growing energy demands. Merrill Lynch’s Alfredo de Angelis says that Panama is the crossroads of global trade and that the Panama Canal Expansion, the development of roads and airports, and industrial development serve as keys to Panama’s future success as a global competitor. Caterpillar’s Thomas Gales says that Panama’s proximity to South America, as well as the opportunity of an expansion of the service industry, will allow Panama to create a solid relationship with the global market through the development of its infrastructure. Panama is insulated from inflation or devaluation of the dollar as the underlying currency is the Balboa. Should any currency suffer inflation or devaluation, the Balboa would be adjusted accordingly so as to maintain a stable growth and smooth economy.
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