NEW STRIDES IN PANAMA: THE FASTEST GROWING ECONOMY IN THE WESTERN HEMISPHERE Despite slower GDP growth of 6.2% in 2014, according to the Ministry of Economy and Finance and LAFTA reports, Panama remains one of Latin America’s fastest growing economies. With its history of low inflation, this is a trend set to continue in the coming years with the IMF forecasting average annual growth of around 6.5% over the next five years. The main reasons for the increased GDP are: TOURISM - The Tourist Industry in Panama continues to show increases in the number of visitors and it is hoped that support for the increased investments (hotels, airline flights, marinas) continues to record a major expansion. EDUCATION – A shortage of skilled workers has been one of the most commonly voiced concerns of business professionals in Panama. With the skills
shortage having an impact on the labor market, authorities inaugurated recent developments in subjects offered in technical education, obtaining a Government commitment and thrust to reduce labor shortages. PANAMA CANAL – It is expected that the forecasted inauguration of the widening of the Panama Canal marks the beginning of important investment opportunities in real estate, light industries, industrial estates, warehousing and exports. SUSTAINABILITY – The prolonged joint forces of successive governments together with an agreement on a flat tax system of 10%, have helped position Panama as a stable global business destination and a global transport destination. Panama received a big boost in August 2016 with the added joint forces of public and private sector organizations.
DUTCH GIANT UNILEVER BREAKS GROUND FOR FACTORY IN CUBA Dutch consumer product giant, Unilever, is the largest foreign company to establish itself in Cuba. With the recent move to open up the Cuban economy to foreign investors, the government has created a special economic development zone at the Cuban port of Mariel that is intended to attract foreign investment. Unilever broke ground on a US$35 million joint venture with the Cuban government to produce
personal-care products such as shampoo, soaps and other products, for local use and for export. Unilever will hold a 60% ownership of their Cuban investment. The factory is expected to generate a much-needed 300 local jobs and will be managed by Unilever. Seven other foreign companies have initiated plans to open operations in the special economic zone since it was inaugurated in 2014, but
have not completed documentation to do so. Many other firms hope to gain entry into Cuba but are also yet to break ground, while others remain in the early stages of negotiation. Cuba says it hopes to accelerate the pace of foreign investment, which has been lagging at less than half its annual goal of over US$2 billion.
CARIBBEAN FINANCE MINISTERS DISCUSS ECONOMIC PROBLEMS IN THE REGION International Monetary Fund, (IMF), Deputy Managing Director, Tao Zhang, stated that the current global financial situation, with its low interest rates, provides an opportunity for Caribbean countries to pursue adjustment, undertake liability management to lower financing costs, reduce debts to safer levels and facilitate lending. This will all contribute to a renewed balanced growth. During a recent Caribbean Forum he argued that fiscal and broader macroeconomic stability are necessary, but not sufficient, conditions for growth.
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He said additional country-specific structural reforms have to go hand-in-hand to reap a growth dividend. Several Caribbean Heads of State, as well as Central Bank governors from nearby regions attended the forum. Tao Zhang told the delegates that the global outlook continues to be shaped by a subdued recovery from the global financial crisis and weak trade, and that 2016 is proving to be another year of lackluster growth. On the positive side, low oil prices have bene-
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fited most countries in the region because they import oil and fuel. Many of these countries have seen their external positions improve significantly.
