PANAMA achieved a second consecutive year of double-digit growth in 2012 on the back of the US$5.25 billion expansion of the Panama Canal, but money is needed to develop the nation into a Latin American logistics hub.
Growth hit 10.7 per cent in 2012 and held steady at the previous year's annual expansion rate of 10.8 per cent. Growth in the fourth quarter dropped marginally to 10 per cent, down from 10.5 per cent in the third quarter.
The Panamanian Finance Ministry predicts that annual economic growth will shrink to 8.5 per cent this year, while some analysts peg it at seven or eight per cent.
"Panama is developing into a hub. Its location is very central, you see this in the airline sector," said Claus Born, senior vice president at investment manager Franklin Templeton's emerging markets group.
Over the past year logistical and transport services linked to the canal have being rising in importance, with port services expanding 5.4 per cent in 2012. The government is also expected to commence construction of a third port on the Pacific side this year.
International companies, such as Maersk, continue relocating their headquarters in Latin America to Panama, attracted by the dollarised economy, connections to South/Central America and its thriving financial sector.
WORLD SHIPPING
10 March 2013 - 17:41
High growth Panama fuels canal expansion, but more funding needed
PANAMA achieved a second consecutive year of double-digit growth in 2012 on the back of the US$5.25 billion expansion of the Panama Canal, but money is needed
WORLD SHIPPING
10 March 2013 - 17:41
High growth Panama fuels canal expansion, but more funding needed
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