Panama 2011 growth above 10 percent

Panama's economy will expand by more than 10 percent in 2011 and then slow to 7.5 percent growth next year, Finance Minister Frank De Lima said on Friday. The slight uptick in his growth forecast follows data on Thursday that showed Panama's economy grew by 10.4 percent in the third quarter compared to the same period last year.
"Panama will grow above 10 percent in 2011," De Lima told reporters. As recently as November, De Lima had expected growth to be around or just below 10 percent. Bustling activity in Panama's Caribbean free trade zone and the country's ports, which are Latin America's busiest, are driving the economy along with the $5.25 billion expansion of the Panama Canal and a $1.8 billion subway project.
"Everything indicates that next year will be a very good year for Panama too, in spite of the world's economic situation," he said, adding that investment in the canal expansion and subway projects will peak next year. De Lima said he expects Panama's annual inflation rate to fall back to 5.5 percent by the end of 2011 from a spike to an almost three-year high of 6.8 percent in November. Annual inflation should dip to 4.5 percent in 2012 due to stabilising oil and food prices and the deceleration of the Panamanian economy, he said.