Panama has a diversified economy that would help it cope with a global recession in 2023 as predicted by the World Bank and the Organization for Economic Cooperation and Development (OECD). Faced with this, Domingo Latorraca, founding partner of the firm – Eleménte, explained that in case Latin America has problems, the national territory can once again stand out as a safe port.

Domingo Latorraca, said that Panama has to be intelligent in the public investment it makes and must continue betting on infrastructure projects

According to a World Bank report, the world could be moving little by little towards a global recession in 2023 and a series of financial crises in emerging markets and developing economies. Likewise, the OECD anticipated that the energy crisis and rising prices would lead large economies to recession.

The outlook is not positive, but the characteristics that stand out of the Panamanian economy is that it is stable with a regional and dollarized banking system and these can be attractive to other countries, if trust is generated and a correct message is sent.

Domingo Latorraca stressed that Panama has an open economy that works with variables that change dramatically. An example is the flow of natural gas from the East Coast of the United States to Asia and that represents a significant volume of cargo through the Panama Canal, but that was then significantly reduced with the war in Ukraine.

“There are many variables that must be kept aware, that is why it is important that Panama has the best minds and experienced professionals to attract talent from all over the world to continue in that very dynamic game in a very complicated context, as in the last two years where it decreased by 18%,” Latorraca recalled.

But in Latorraca’s opinion, Panama has to be intelligent in the quality of public investment it makes and must continue betting on infrastructure projects.

He pointed out that the main economies of the world have a high recession, decreasing growth and a very high pressure on unemployment.

The U.S. economy decreased 0.6% compared to the same period last year, for the second time in a row, while in the first quarter it also reported a fall in Gross Domestic Product of 1.6%.