Closer trade links with Europe, Russia
While the negotiations for a free trade agreement with
the United States remain stagnant, there is a possibility of negotiations
with Europe.
“Co-operation between the European Union and the government
of Panama is positive”, said Tomas Abadia, chargé d’affaires
of the European Block for Costa Rica and Panama, in referring to
the long-term programming from 2002 to 2006 that involved non-refundable
financing for US$37.4-million.
Meanwhile the Russians are interested in Panamanian bananas, pineapples,
melons and other tropical fruits it was announced by Eugeny R. Voronin,
ambassador of the Russian Federation in Panama City. "We have
made a formal invitation to the Panamanian Foreign Minister, Samuel
Lewis Navarro to visit out country in the first days of next year,
with the purpose of making trade agreements and those of bilateral
cooperation", he said.
Economy good but overspending looms.
The Panamanian economy maintains an 8 percent growth rate
accumulated in the Monthly Economic Activity Index (IMAE), according
to the economic report for the third quarter of 2006 released by
the Ministry of Economy and Finances (MEF). The report indicates
that the equilibrium is due to the good dynamics in the labor market,
the reduction of inflation, the drop of the petroleum prices and
growth of exports.
The Minister of Economy and Finances, Carlos Vallarino, announced
recently that the deficit for the year 2007 would equal 2% of the
gross domestic product (GDP). However, the government budget contemplates
a deficit of US$697-million. That total, according to some economists,
will represent between 3.9% and 4.2% of the GDP, double that announced.
The Budget Commission of the National Assembly held the first
debate on the State budget. The proposal of US$7,375,976-million
is 8% higher that of 2006, and Vallarino declared himself satisfied
with the growth shown in the domestic economy.
Seek to save Bella Vista
The Education Commission of the National Assembly, led
by the deputy Denis Arce Morales, presented the draft of law 233
that seeks to include as a Historic Monument, the suburb of Bella
Vista, where there are many last-century homes and buildings. Morales
calls for safeguards on the architectural style of the buildings
and houses to avoid deterioration and to try to "save the history"
of the country.
Lack of Jobs
Panama’s rate of unemployment is estimated at 8.6%
it is also estimated that, on the average, six out of each 10 Panamanian
youths who receive their university certificate to start a career,
fail to find work.
More vehicles sold
Automobile sales figures show growth of 25% this year.
According to the Traffic Registry of Panama, to date more than 25,000
new vehicles have been sold.
Cash from consuls
Panamanian consulates abroad collected US$27.2-million
in the first semester of 2006, with a 2.4 percent growth (US$648,191)
in comparison with the same period of 2005, says a report from the
Comptroller’s Office.
No consensus on immigration
In spite of the fact that over the past five years the
number of immigrants to Panama has increased considerably, the country
does not yet have unified legislation on immigration and depends
on a variety of norms in force since 1960. A planned law on the
subject has been in the National Assembly for more than one year
without having been discussed because there is no consensus, reported
the Director of Immigration, Ricardo Vargas.
Global Panama
Panama is the most globalized country in Latin America
and Brazil is in the lower range of the index on this matter, according
to the Latin American Globalization Index 2006 published by Latin
Business Chronicle. According to the index, that analyzes 19 countries,
the factors that impact on globalization have to do with export
and import of goods and services and foreign direct investment.
Animal Health
From next year Panama will be the sub regional headquarters
of the World Animal Health Organization (OIE), an intergovernmental
agency whose main objective is to guarantee the transparency of
the animal health situation in the world for which each country
is committed to declare animal illnesses.
State Modernizes Payments
The State is implementing a system of electronic payment
that will replace checks and permit officials to receive their salaries
through debit cards or in savings accounts.
Social Security problems continue
A year after the implementation of Law 51 reorganizing
the Social Security Fund (CSS) that was intended to improve the
situation and correct administrative and financial irregularities,
things are not well in the program of Invalidity, Old age and Death
(IVM) which will show an approximate deficit of US$80-million.
Tocumen is Champion
The International Airport of Tocumen S.A. received the
prize for excellence after the Latin American Association "Air-High"
recognized it as the best air terminal of the region. Air-High is
an association of more than 30 airlines of the continent and a large
number of airport users.
Traffic Jams
The Ministry of Public Works (MOP) recently revealed a
list of 73 critical traffic points in the Panama City metropolitan
area. The list includes the Los Pueblos shopping district, the Vía
España district and the intersection of Avenida Tumba Muerto
and the highway leading to the Centennial Bridge.
Retirees on strike
Retirees engaged in a series of street protests in Panama
City in late November demanding a $30.00 raise in their monthly
pension. The daily protests, which took place on Vía Transístmica
near the University of Panama, caused a week-long series of traffic
jams in Panama City. As of this issue, strike leaders were threatening
to stage more protests near the Presidential Palace. The last raise
to their pensions was approved in 2001.
Cupboard bare for pensioners
There is no money for increases. This was the answer given
by the government to the pensioners who have been asking for an
increase of US$30 a month since October 9. At a press conference,
the Second Vice-President, Ruben Arosemena, said that to increase
pensions to 153,380 retirees by US$30 a month would imply an annual
distribution by the Social Security Fund (CSS) of US$48.9-million.
David's airport to be expanded
Panama's Civil Aviation Authority recently approved the
expansion of the runway of David's Enrique Malek International Airport,
which will allow the landing of larger, international airliners
in the country's third largest city. The works, which will take
place next year, also call for the enlargement of the terminal –a
much needed project due to the increase of visitors to David in
recent years. David is the provincial capital of Chiriqui –a
favorite destination for second-home buyers and retirees from Europe
and North America. Approximately 100,000 passengers depart or arrive
in David via the Enrique Malek airport.
More People Flying
Passenger air transport on domestic flights increased
30% for the year-end season, and it is forecast that this rise will
be maintained throughout the dry season, according to Odalys Guerra,
sales manager of Air Panama, particularly to the provinces of Chiriqui
and Bocas del Toro and to the Comarca of San Blas.
Fish Threatened
Cottage industry fishermen of the Gulf of Patria, in Herrera
province, denounced before the Commerce Commission of the Legislative
Assembly that shrimp and sardine trawlers are "devastating"
fish species on the coasts of the Pacific in detriment to thousands
of families of the provinces of Los Santos, Herrera and Coclé
that depend on the fishing activity.