Panama's 1Q Gross Domestic Product Expanded 4.9% On Year
Thursday, June 17 2010 @ 04:44 pm EDT
Contributed by: Don Winner
Editor's Comment: The Panamanian economy continues to grow at a steady clip. When discussing the economy recently and talking about the expansion of the Panama Canal, once that's done in 2014 annual revenue from the Panama Canal will increase to about $5 billion dollars per year, and profits will increase to about $2 billion. Meaning, it will cost about $3 billion each year to operate and maintain the Panama Canal. The rest of the money goes straight into government coffers. Panama currently is carrying about $11 billion in national debt and eventually the country could end up debt free. The thing to remember is this - the $5 billion dollars the Panama Canal will take in every year comes into the country fresh from overseas. It has the same impact as Foreign Direct Investment capital - it's like "new money" being injected directly into the economy. And, the $3 billion dollars that it will cost to operate and maintain the Panama Canal after the expansion is completed, all of that money stays in Panama and is spent on things like services, materials, logistics, communications, fuel, salaries and payroll, contracting, etc. It takes one "pass" through the hands of the ACP but ends up right here in the local economy anyway. In a very short time Panamanians will be - by far - the richest people in Latin America in terms of GDP per Capita (PPP). Nothing short of a major natural disaster can keep that from happening.