Panama Industry

Panama’s Business Leaders Confident

The recent success of Martinelli at the polls in Panama has had media report that the business leaders in Panama are confident of future growth within the region. The country has shown a increase in growth, in terms of the GDP of 8% annually since 2004, with significant spikes of 11,5% and 9,2% in 2007 and 2008 respectively, representing one of the fastest growing economies in Latin America.

These factors have not made Panama immune to the global economic situation which has experienced a significant contracting in credit and commercial activity across the world. These challenges await Martinelli, when he officially takes office on July 1 this year.

Economists are predicting the impact of the global situation to realize a GDP growth in 2009 of only 3% for Panama, which is still considerably better than the predicted growth of Costa Rica being foreseen at 0,5% for this year.

International credit rating agency, Standard & Poor recently issued a report stating that the key to success of the region will hinge on the fact of Panama maintaining a positive GDP growth for the year. The agency further predicts an expansion from Panama, with a decelerated growth rate, and maintains that Martinelli’s success as a business man and leader will be key to the country’s success in moving forward through these difficult economic times.

Martinelli, who achieved success with the largest margin in Panama’s voting history, won the May election with 60% of the vote, with the closest opponent being Balbina Herrera receiving less than 40% of the votes cast in Panama.

Martinelli is also no stranger to the government, as he has served as Chairman of the board at the Panama Canal Authority as well Panama Canal Minister and Director of Panama’s Social Security Administration. As well as confirming intended tax cuts and a flat rate tax rate system, Martinelli claims that he will resist any tax transparency legislation that may be required in terms of the Panama and US trade agreement.

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