WORLD BANK: PANAMA TO BE THE FASTEST GROWING COUNTRY IN LATIN AMERICA IN 2017


The multilateral recognizes improvements in the administration of taxes and reduction of the fiscal deficit

Panama will be the country with the highest economic growth in Latin America (LA) and the Caribbean in 2017, according to the most recent projections published by the World Bank.

The multilateral organization estimates that the economies of the region with the highest growth this year will be Panama (5.4%), the Dominican Republic (4.5%) and Peru (4.2%), countries that will expand at rates significantly above the average global economy 2.7%) and also the average of the Latin American and Caribbean economy (1.2%).

The World Bank also highlights the improvement in tax collection in Panama and the reduction of fiscal deficits.

In addition, they point out that the country can improve energy infrastructure and education in terms of access to preschool, teacher training, adaptation of education to the needs of employers and information technologies.

As for AL, the multilateral agency said in its report that the region will emerge from the recession and will grow again in 2017, with an expansion of 1.2%.

Brazil is expected to grow 0.5% thanks to the reduction of internal difficulties. The decline in investment in Mexico, due to political uncertainty in the United States, is expected to result in a moderate growth slowdown this year, at 1.8%. In addition, the recovery of fiscal consolidation and improved investment will support growth in Argentina, which is expected to grow at a rate of 2.7% this year; While Venezuela, which continues to suffer from deep economic imbalances, will continue to contract (-4.3%).

They also anticipate greater dynamism in the US economy. According to World Bank estimates, the United States closed the year 2016 with an expansion of 1.6% and in 2017 will reach 2.2%, progress that attributed to a recovery of manufacturing activity.

“After years of disappointing global growth, we see hopeful better economic outlook for the future,” said Jim Yong Kim, president of the World Bank Group. “It is time to take advantage of that momentum and increase investments in infrastructure and people. It is an essential step in accelerating the sustained and inclusive economic growth needed to end extreme poverty. “