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in Panamanian Economy
The privileged geographical position is mostly what Panama depends on. It’s
economy is primarily based on a well-developed service sector, including
banking, insurance, government, trans-Panamanian oil pipeline, the Colon
free Zone and last and most important the Panama Canal. The use of the US
dollar and the Panama Canal spurred the fast growing development of the
service economy and played a significant role in the creation of the Colon
Free Zone and the International Banking Center.
Despite a worsening financial and economic outlook in the US, Panama’s
economy continues to fire up. Economic activity expanded, driven primarily
by a surge in construction, transport and commerce. Construction of a new
highway between Panama’s two main cities, Panama and Colon, as well as the
high-profile canal expansion project should keep the economy on a decent
growth trajectory in 2008 and beyond.
The economic consulting and financial firms Indesa and Deloitte consider
that the growth of the Panamanian economy will oscillate between 7% and 8%
this year. Which supposes a deceleration with respect to 2007, but a scene
similar to the ones registered between 2004 and 2006.
Some international institutions, like the Economist Intelligence Unit, have
still better prognoses and bet that Panama will return to be the economy of
greater growth in Latin America this year.
“The dynamism that shows the Panamanian economy, through the important
projects of public and deprived nature that is outlined in 2008, will help
to compensate the negative impacts which they are possible to be registered
in the United States and the region”, says the analysts of Deloitte.
Adapted from:
“Recortes de Continental no afectarán a Panamá,” Friday August 1, 2008, Roberto Gonzalez Jimenez, laprensa.com.pa
“Turismo al día, Copa anuncia nuevos destinos y Tocumen licita el muelle norte,” Thursday August 7, 2008, Roberto Gonzalez Jimenez, laprensa.com.pa
More Flights Over Panamanian Skies
With all of the economic hardship making the news these days, airline companies have stood out as some of the hardest hit. Many air carriers are trying to survive any way that they can by laying off workers, adding new fees for passengers and by cutting back on flights.
Continental Airlines announced in June that it would be firing 3,000 employees and eliminating its least profitable flights. They have already begun to reduce their activity in Colombia, Ecuador, Mexico, Chile and the Dominican Republic.
Panama however does not appear on this list. Continental Airlines manager in Panama Ana Lorena Arroyo says that the airline is actually adding the capacity for more passengers to its Panama flights by bringing in an airplane that seats 25 more people. Nor will the US-based company be dropping any of the 90 employees that it currently has working in on the ground in Panama.
While Continental reinforces its commitment to Panama, many other airlines are also strengthening their presence in the isthmus. The Amsterdam based KLM Airlines used to fly once a week directly to San Jose, Costa Rica. Observing changes in market opportunities, the company decided to shift this flight to Panama instead. The KLM non-stop Amsterdam – Panama flight was initially offered only once per week but as occupancy improved, KLM has now decided to operate the route five times per week.
Direct flights between Panama and Toronto are currently operating every Sunday and more flight options between Canada and Panama are expected to come as we approach the tourism high season in the coming months.
Panama-based Copa Airlines is expanding from Panama outward, opening new connections with Valencia, Venezuela; Oranjestad, Aruba; and Santa Cruz, Bolivia starting in December. Copa is also adding six new airplanes to its fleet bringing it up to 43 airplanes in total.
In order to accommodate all of the new activity, Panama’s Tocumen International Airport is proceeding with plans to add a new northern terminal by 2010. This expansion will effectively double the overall passenger capacity at the airport which has seen a 22.1% increase in passenger activity in the first semester of this year versus the same time period in 2007.
Panama continues to be an increasingly popular place to visit and major airline companies worldwide are responding. Even in today’s times of economic hardship, Panama is a location receiving lots of attention from all over the world, primed for consistent development and growth.
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