Although Panamanian businessmen recognize that in the first months of the Cortizo administration there have been advances that could improve the performance of the local economy, it is predicted that the reactivation could take longer than expected.

The gradual elimination of price control, the creation of the PPP regulatory framework and greater flexibility in preferential interests in the housing market are the most important advances that the productive sector has recognized to the Cortizo government.

These changes seek to achieve economic reactivation, which should be reflected in the level of growth of the economy, which is estimated to be between 3% and 3.5% at the end of 2019, according to the latest forecasts of Moody’s agency.

Andy Espinosa, economic advisor of the Industrial Union of Panama (SIP), told Elcapitalfinanciero.com that “… the growth of GDP at the end of 2019 will not exceed 3%, very different from the 4 or 5% predicted by international financial institutions, which is not enough to reactivate the economy and meet the country’s needs mainly in terms of jobs. The positive is that measures are being taken to reactivate the economy, ‘we believe that if there is a favorable environment for investment and business, that the economy will be reactivated little by little in the coming years, but not at the speed we would like.”

Samuel Moreno, president of the National College of Economists, explained that “… the projects that really generate economic movement and employment, in terms of multipliers, are the mega-projects, so we hope that works on the third line of the subway and the fourth bridge over the Canal will begin soon, so that by the end of 2020 we can improve our growth by 4 or 5%. We also hope that the activity of the banana industry and the export of copper reaches its maximum capacity, as well as the culmination of works such as the Pacific cruise port, the Amador convention center and the port on Margarita Island, Colon, can generate new jobs.”

According to official figures, during the second quarter of the year Panama’s constant GDP totaled $10.498 million, 3% more than that reported in the same period of 2018, explained by the activity of transport and trade.