Latin American Economic Outlook 2023
Investing in Sustainable Development
Latin America and the Caribbean needs an ambitious and comprehensive investment agenda to embark on a stronger and more sustainable development trajectory. The 16th edition of the Latin American Economic Outlook proposes ways to make this possible through co-ordinated actions by policy makers, the private sector and international partners. It argues that to close existing investment gaps and overcome the region’s structural challenges, it is essential to scale up domestic and foreign investment. These investments should be a catalyst for better quality jobs and an upgraded production structure, harnessing the potential of LAC’s endowments and of the green and digital transitions. Better governance and information are key to promoting effective and efficient public and private investments. Public institutions are fundamental to aligning investments with national development strategies while building stronger social contracts. The report presents a series of options for financing this new investment agenda, including innovative debt instruments and a renewed role for development finance institutions. The report also highlights the importance of reinvigorated international partnerships across the investment agenda.
Also available in: Spanish
Panama
Poverty in Panama decreased from 16.7% in 2016 to 14.3% in 2022, well below the Latin America and the Caribbean (LAC) average of 24.1%. Extreme poverty also decreased from 7.4% in 2016 to 6.5% in 2022, below the LAC average (8.3%). The Gini index increased slightly from 50.4 in 2016 to 50.9 in 2021, remaining above the LAC average (44.8). Regarding investment and production transformation indicators, total investment in Panama increased from 38.4% of GDP in 2016 to 39.3% in 2017, remaining well above the LAC average which increased from 20.8% to 21.3% over the same period. Private investment slightly decreased in Panama, from 25.0% of GDP to 24.6% between 2016 and 2019, yet remaining well above the LAC average (15.8% in 2019). The share of exports of high-tech products in total exported manufactured goods declined from 1.2% in 2016 to 0.3% in 2021, below the LAC average (7.2%). Positive perceptions of foreign direct investment (FDI), which declined across the LAC region, dropped in Panama, from 67.8% in 2016 to 50.0% in 2020. The country’s tax revenue decreased from 15.5% of GDP in 2016 to 12.7% in 2021, in line with a regional declining trend, and remains well below the LAC average (21.5% in 2021). Environment-related tax revenues declined from 0.7% of GDP in 2016 to 0.4% in 2021, below the average of 0.9% in LAC.
Also available in: Spanish
- Click to access:
-
Click to download PDF - 216.52KBPDF