Panama’s Bold Economic Forecast: 7% Growth in 2023

President Laurentino Cortizo of Panama forecasts a 7% increase in the country’s GDP for 2023, alongside a 1.6% inflation rate.

In his final address at the National Assembly, he emphasized Panama’s promising growth within Latin America—his term ends following the upcoming May elections.

Cortizo attributed this economic performance to strategies recognized by global entities.

Despite revenue challenges during the pandemic, Panama saw significant growth in 2021 and 2022.

He highlighted the removal of Panama from the FATF’s grey list, a positive step in financial governance.

Under Cortizo’s leadership, Panama undertook 1,386 major infrastructure projects. These include completed, ongoing, and rescued initiatives from previous administrations.

The 2024 State budget dedicates 7% of the GDP to education, totaling $5.757 billion.

Cortizo also discussed a Supreme Court ruling on a mining concession, underscoring judicial independence during his administration.

This decision marked a significant governance milestone in Panama.

Concluding his tenure, President Cortizo called for prudence and stability in Panama, especially in light of the forthcoming elections.

His focus on economic growth and judicial independence sets a foundation for his successor.

Background

Panama’s projected 7% GDP growth for 2023 stands out in Latin America, signaling strong post-pandemic recovery compared to regional peers.

This robust growth, amidst global economic uncertainties, marks Panama as an emerging player in international markets.

The country’s removal from the FATF grey list boosts its global financial image, attracting foreign investments.

Investments in infrastructure and education reflect a commitment to sustainable development and align with global economic strategies focusing on human capital.

The Supreme Court’s mining concession ruling underscores progress in judicial independence, enhancing governmental transparency.

As President Cortizo’s term ends, his policies set regional benchmarks for economic and judicial reforms.

The upcoming elections will be crucial for continuing these positive trends, with economic stability as a key focus for Panama’s next administration.