The Unassuming Economist

From the latest IMF report on Panama:

“In light of Panama’s continually strong growth in recent decades, this paper investigates the relevance of the “middle-income trap” for Panama and its prospects for maintaining strong growth in the future. It finds that following the political stabilization in the 1990s, Panama experienced stellar growth performance that brought it closer to moving from the middle to the high-income bracket. However, international evidence suggests that maintaining high growth rates may prove increasingly challenging for countries at Panama’s current level of income. In this context, the paper argues that Panama’s prospects for maintaining buoyant growth critically depends on continued productivity growth underpinned by comprehensive reforms focused on improving education quality, attracting talent, and continuing to enhance the investment climate.”