Your Panama News Update

According to Reuters: The International Monetary Fund has issued an upbeat assessment of the Panamanian economy, praising the newly elected government of Martin Torrijos for actions taken to contain public spending, reform taxes and encourage economic growth.

“The mission welcomed the rapid growth of the economy, and noted that output would likely grow by about 6 percent in 2004, led by export-oriented services and a boom in construction that has been stimulated by temporary tax incentives,” the IMF explained in a statement relating to the annual Article IV review of Panama’s economy.

Specifically, the IMF praised the new administration for the emphasis placed on strengthening public finances and improving fiscal transparency through the containment of the fiscal deficit, proposals to restrain expenditure in the 2005 budget, and planned tax reform.

Further ... “The mission observed that the government’s commitment to prudent fiscal policies is part of a broader strategy for promoting sustained economic growth ... and ... further integration in the regional and global economy ... particularly in the export-oriented service sectors.”

According to the Los Angeles Times: Residents like to joke that this city (Panama City) of high-rise condos and ocean promenades is a lot like Miami or Los Angeles except that more English is spoken here. Four years after the last U.S. troops pulled out and the Panamanians gained control of the canal ... the Yankee footprint here remains deep and surprisingly welcome.

Although anti-Americanism is on the rise in much of Latin America, Panamanians heartily embrace their onetime occupiers’ values and symbols, from language to music and fashion -- and the almighty dollar. “The motto here today is ‘Gringo come back,’” said Thomas Cabal, a TV commentator and English professor. “Panamanians would like to see American troops come back and build a base on the Colombian border.

... Much of the persistent good feeling is the result of the high levels of intermarriage and dual citizenship during the long U.S. occupation of the Canal Zone. More than 10,000 U.S. troops and civilian contractors lived in the zone until the waterway was handed over to Panama, and even children born to two U.S. citizens retained the right to Panamanian citizenship after the troops’ withdrawal. Hundreds of “Zonians” have stayed here, strengthening the bonds between the two nations.

... Underpinning the U.S.-Panama bond is economics. The United States is the largest user of the canal, Panama’s most important trade partner and de facto central banker and monetary-policy controller. “Why is our currency the U.S. dollar? Because we were visionaries, “ said Romel Adames, vice minister of commerce and industry. Using the greenback saves Panama the expense of maintaining a national mint and, more important, shields the economy from inflation and manipulation of the money support.

... Tourism tracts boast of the strong new presence of U.S. retirees, who have been drawn to Panama by its low taxes, affordable housing, tropical climate and contemporary, bilingual entertainment. “There’s a lot of shared history here, a lot of cultural affinity. the long U.S. presence here affects the way people do business, the way things are viewed, “ said David Hunt, the retired Air Force colonel who ... jumped at an offer to run the Panamanian-American Chamber of Commerce.

And locally ... the University of Panama’s Cine Universitario is finally reopening after months of being closed for remodeling and the installation of a new air conditioning system. In celebration of the return of the country’s headquarters for alternative and international film, the Spanish Embassy is cosponsoring a series of Spanish movies ... and the Japanese Embassy is presenting a week of their country’s best films. Thank you to thepanamanews.com for the update.