Panama GDP May Grow More Than
6%, Martinelli Says
By Andres R. Martinez and Jens Erik Gould,
Bloomberg.com
PANAMA - Panamanian President Ricardo
Martinelli said his nation’s economy may
grow more than 6 percent this year, higher
than a previous estimate from the finance
minister, as the government boosts spending
on infrastructure projects.
“We are very confident and happy with the
aggressive investment plan,” Martinelli said
in an interview today in Mexico City.
“Security, low inflation and stability are
helping Panama along.”
Panama aims to spend $20 billion during the
next four years to build ports, expand its
main airports and lure international
companies to the Central American nation,
Martinelli said.
The International Monetary Fund forecasts
Panama’s economy will grow 5 percent this
year after it grew 2.4 percent in 2009,
according to the IMF website. Finance
Minister Alberto Vallarino said in November
the economy may grow 5 percent this year.
The country will invest in businesses that
have a “naturally competitive advantage,”
including shipping and financial services,
Vallarino said in November. The investment
will help double Panama’s gross domestic
product in the next 10 years, putting the
nation on par with first-world countries, he
said.
Investment Grade, Taxes
Martinelli said his government respected a
U.S. warrant authorizing former Panamanian
President Manuel Noriega’s transfer to
France after a French court sentenced him to
10 years in jail.
“We would have preferred him going to
Panama, but it’s a decision I respect,”
Martinelli said.
Panama’s infrastructure plans include a $1.5
billion subway system and a $500 million
public bus system, Martinelli said.
The government will begin the
pre-qualification period for bids on the
subway system next week, Martinelli said.
Singers Julio Iglesias and Marc Anthony are
also investing in Panama, with Anthony
planning to build hotels there, he said.
Panama’s credit rating was raised to
investment grade in March by Fitch Ratings,
which cited low debt levels and a resilient
economy that posted one of the fastest
growth rates in Latin America last year as
the reason for a BBB- rating.
Moody’s Investors Service rates Panama as
Ba1, while Standard & Poor’s rates its
long-term foreign currency debt at has a
BB+.
The nation faces threats of international
sanctions over banking-secrecy rules, a
punishment last imposed on Panama in 1989 to
pressure Noriega.
Martinelli has said tax treaties with Mexico
and other countries will help remove Panama
from the Organization for Economic
Cooperation and Development list of
countries that have not implemented
international taxation standards. |
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