Panama Economy Holding Up
Monday, April 13 2009 @ 03:54 PM UTC
Contributed by: Don Winner
SAVINGS AND INVESTMENT: Although the collapse in external demand will dampen Panama’s growth prospects, higher savings and investment relative to peers should support the maintenance of a positive growth trajectory, Fitch Ratings analyst Theresa A. Paiz-Fredel said in a recent research report.
“Panama’s resilience to the global financial crisis thus far has been better than regional peers, even with its large current account deficit and comparatively higher external financing requirement,” she argues. “This in part reflects the strength of the Panamanian banking system relative to similarly rated peers as well as the institutionalization of the country’s exchange rate regime.”
Even Panama’s blue chip companies like Copa Airlines are expected to do well this year despite what appears to be a grim outlook for travel and tourism worldwide. Citibank expects Copa to boost its net income this year despite a 6.3 percent fall in revenues, according to a Latin Business Chronicle report.