Fiscal Consolidation: Key for Economic Upturn in Panama and Latin America
Panama has one of the economies with the most developed and robust fiscal policies in Latin America, but a fiscal consolidation plan will be needed to take on the challenge of reviving the economies of the Central American nation and the region.
The executive president of CAF—development bank of Latin America—, Luis Carranza,, participated in the Annual Conference of Executives (CADE) 2020, under the motto “Panama at a Crossroads,” with the aim of assessing the economic and social upturn needed in Latin America and Panama.
President Carranza said that the Central American country has some of most developed and robust fiscal policies in Latin America, but that eventually, after the crisis, governments will have to devise mechanisms to re-consolidate their fiscal situation.
“In the case of Panama, this fiscal consolidation should not be done at the expense of public investment, because the nation is an example for the entire region. Panama has relied on infrastructure development, which has allowed them to become growth leaders in the region, catching up with countries that had a higher per capita income, such as Chile,” Carranza said during the CADE 2020 keynote address.
“At CAF, we are proud and pleased to be able to join Panama in the efforts to build a more prosperous and more inclusive society. Rather than a development bank, CAF is a development partner,” Carranza added.
The global economy is projected to take a fall of around 4%, with the world’s major economies such as the United States and Europe contracting between 5.5% and 8.2%, while China will grow slightly, by around 1.4%.
For Mercedes Eleta de Brenes,, president of the Association of Business Executives (APEDE), the forum this year aims to create proposals from the business sector for the revival of the Panamanian economy.
CADE 2020 will be held online, on July 20–24, featuring more than 15 national and international speakers, who will discuss the challenges facing Panama for economic upturn.
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