(Newsroom Panama
) Panama’s fiscal deficit has risen to an equivalent of 1.9% of Gross Domestic Product(GDP) in 2010 due to spending on infrastructure.
The news was released Thursday, January 17, by Finance Minister, Alberto Vallarino.
The deficit in 2009 was 0.9%. The expenses for the construction of Panama’s metro an railway system and for roads increased the deficit, said Vallarino.
The fiscal discipline of Panama, a country that has investment grade major credit bureaus, is followed closely by investors.
Analysts expect Panama’s economy for 2010, driven by the expansion of the Panama Canal to have grown by 7%.
The fiscal discipline of Panama, is followed closely by investors.