(prensa.com) Dominique Strauss-Kahn, the director of the International Monetary Fund, has said a recently completed review of Panama has identified two major potential issues facing the country.These issues are the danger of the economy overheating due to rapid investments in public infrastructure and the need to improve the public education system.
The officials said that although the infrastructure investment is a step in the right direction, it could cause a wave of inflation. Therefore, the government must take a long-term approach to investing in public projects.
The government also needs to spend more on education, the official said.
“It is not enough that Panama is becoming a core of world trade and an international financial centre, but it needs to have a good education system as well,” said Strauss-Kahn.
The head of the IMF came to Panama recently to meet with President Ricardo Martinelli and Minister of Economy and Finance Alberto Vallarino.