Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

May 4, 2017

Electronic Access:

Free Full text (PDF file size is 1657 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The opening of the expanded Panama Canal marks a unique opportunity to reevaluate Panama’s growth model. This paper reassesses Panama’s business model founded on its ability to be an attractive destination for international financial, business, and transportation services. A growth diagnostic exercise suggests that Panama is well-placed to maintain this business model, with improvements in the quality of education, a strengthening of governance, and reductions in bureaucracy important to further strengthen Panama’s comparative advantage. Additional analysis suggests that investment will continue to support growth, while the logistics and tourism sectors hold promise to further build on Panama’s comparative advantage.

Series:

Country Report No. 17/106