Macroeconomic Forecast Panama

August's urban consumer price inflation continued slowing to 5.3% y-o-y, down from 5.4% y-o-y the previous month. This is likely to be welcome news to the Panamanian authorities, as June's reading of 6.5% y-o-y was the highest reading since 2008, and as the economy remains dollarized their ability to control inflationary pressures is limited. We expect this slowdown in price growth to continue in the coming months in line with our end-2011 inflation forecast of 4.9% y-o-y.

To read the full article, please choose one of the following options: