Economy Slowdown… And The New Administration Meets Fiscal Challenges

PANAMA - Report 16 Jul 2014 by Marco Fernandez and Guillermo Chapman
Executive Summary Growth for the first quarter of 2014 was 5.8% YOY according to recent official data. In Q1 2014, the most dynamic sectors of the economy included fishing, construction, mining and quarrying, and transportation and communications. The Monthly Economic Activity Index (IMAE) for April 2014 grew at a 3.9% pace for the first five months of the year. The GDP figures for the first quarter and IMAE data thru April show what businesspersons and analysts perceive: de-acceleration of the real economy and consequently expected lower tax receipts. The Varela Administration faces this s...

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