Panama

Outlook deteriorates a notch

Unlike the majority of its regional peers, the country is likely to have grown last year. However, the outlook for this year has deteriorated a notch despite the boost provided by large-scale infrastructure projects related to the Panama Canal expansion and a return to positive growth in the country's major trading partners. As a result, the country will experience a moderate rebound compared to that of other Central American countries. Meanwhile, inflation remains subdued and is not expected to rise substantially next year, despite the weak dollar and rising commodity prices.