A few days before the start of the new year, economic projections for next year are positive. The Panamanian economy is expected to grow between 5% and 7.5%

anamanian Economy Projected To Grow 6.5% in 2011

Thursday, December 02 2010 @ 09:07 AM EST
Contributed by: Don Winner
Views: 25
A few days before the start of the new year, economic projections for next year are positive. The Panamanian economy is expected to grow between 5% and 7.5% over the next year. These are the calculations of experts on the matter and, of course, the government has projected the Gross Domestic Product to grow 6.5% in 2011.
For groups of experts such as the National Competitiveness Center (NCC), the Center for Economic Studies at the Chamber of Commerce, Industries and Agriculture (CEECAM), the Research and Development Group, S. A. (INDESA) and Latin Consulting Group, the growth for next year will be grounded in the transportation sector, as well as telecommunications and trade. Although the outlook is for increased domestic production, Felipe Chapman, the Managing Director of INDESA says that some of the activities may be left behind in domestic production are agriculture, livestock and fisheries. Other indicators such as unemployment and inflation would suffer no major change from the numbers seen in 2010. (La Estrella)

Editor’s Comment: Wrong. Panama’s economy will grow at about 6.5% for 2011, that’s true. However the part about there being no change in unemployment, that’s wrong. A growing economy creates jobs, period. Panama’s unemployment numbers are already very good, better than ever. However it’s a disservice to simply gloss over the employment and jobs scenario completely with only a token reference to unemployment. In every economy there is a “floor” for unemployment numbers. This represents the number of people as a percentage of the entire workforce who are basically “unemployable” because of addiction issues, laziness, poor habits or work ethics, or what have you. In the United States its very hard to get the unemployment numbers below 4% for example – that’s the practical floor. In Panama it seems to be about 5.5% or so. After that, you have to do things like find ways to look for new sources of labor. Why do you think Immigration is holding these fairs to make long term “illegal aliens” legal? They want to put them to work in the real economy, to issue them work permits, so they can pay taxes and go on the Social Security rolls, that’s why. The Panamanian economy is quickly outgrowing it’s domestic workforce, an issue that will become more and more important as the economy continues to grow and expand.

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