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Panama economy causes concern, says Cato analyst

Monday, February 25, 2013

The fact that an economy growing at 11 percent in fiscal deficits incurred is a true reflection that "there is an important cyclical inbalance", said Juan Carlos Hidalgo, public policy analyst for Latin America at the Cato Institute, about Panama's economy.

Panama closed 2012 with a fiscal deficit of 2.1 percent of gross domestic product, to which Hidalgo said: "perhaps the deficit is small and debt under control, but that was also so in Spain, which had a surplus in 2007".

The government, for its part, argues that the deficit is a result of infrastructure, and it is necessary for the development of the country.

Source: Newsroom Panama