Panama real estate prices are expected to rise on the back of the country’s new prime minister, who will be the first to officially take over after an election in which his party, the Panamanian Democratic Alliance (PDA), received more than 70% of the vote.
The government will also make several announcements including a reduction in the maximum home prices and a plan to increase the number of new residential apartments by 30% a year.
“The PDA has been doing a very good job and the economy is expanding, and we think the government has made a great contribution to the economic growth in Panama,” said David Chiaramonte, senior research fellow at the Mercatus Center at George Mason University.
“It has been the biggest beneficiary of the current government.
The government is looking to take a big step to get things back to normal and to get rid of some of the political baggage.”
The announcement of Mr. Chiarimonte’s forecast comes as Panama continues to recover from a devastating earthquake and tsunami in May.
In addition to the recent surge in the price of real estate in Panama, there is also a growing number of apartment and condo sales in the country.
But Mr. Correa is keen to stress that the new PM has promised to be a different kind of leader.
He wants to show that his government has the power to push through a raft of policy changes and overhaul the countrys public administration.
The government’s policies have been largely limited to cutting bureaucracy and increasing spending.
It has been aiming to tackle corruption and create more jobs.
The recent announcement of a new government salary of $100,000 (U.S.) a year comes at a time when the average salary for a high school teacher is about $32,000 a year in the United States, according to the Bureau of Labor Statistics.
According to the latest data, only 14% of workers in Panama’s private sector are paid enough to cover basic needs such as food and shelter.
“Panama is a nation of immigrants, which means there are a lot of foreign workers here,” said Chiaromonte.
“We’re talking about a population of approximately 1.2 billion, so the problem is that they don’t pay taxes or they don`t get benefits.
If you look at the economy in the context of a country like Mexico, which has a larger population, then it’s a big deal, but the population in Panama is relatively smaller.
So I think there’s a lot more to be done.”
While the government’s plan to raise the minimum wage and reduce benefits for the poor and middle class will help reduce inflation, Chiaramaconte said there is a risk that some of those people will be attracted to other parts of the economy.
For instance, if the inflation rate increases, the government could reduce tax collection and raise taxes to fund social programs, Chirac said in a televised address on Thursday.
“We have to be realistic,” he said.
“The inflation rate will increase if there are some changes in the tax collection system.
We have a huge number of foreign people here, and they need to pay taxes.”
Despite the increased cost of living, many people in Panama are still paying much more for housing than they did a decade ago, Chiaconte noted.
While inflation is expected to remain below the 2% mark, he said the government is not planning to increase its primary income tax rate.
Despite these concerns, the new government has promised a significant increase in the number and quality of public education.
On Friday, the National School Boards Association (SSAA) announced it would open a new high school in a remote area of the capital, which was previously shuttered because of budget cuts.
SSAA president Ricardo Torres said the new school would offer more students access to the best of the best in education, including a full-time academic program.
“The school will be open for a few months, but I want to stress we are committed to opening it, and I know that the parents of students are committed and enthusiastic about it,” Torres said.
He said the school would be one of the most important investments in education in the nation, and said that in addition to a new school, the SSAA will also offer free textbooks to students.
During a speech on Friday in the city of San Pedro Sula, President Correa also said that the country should look at a global strategy to help eradicate poverty and hunger, which he said would involve raising the minimum income tax and introducing a new set of universal basic income payments.
Mr. Corbett’s plan, he added, will “reduce poverty and inequality.”
“If you want to help poor people, we have to have a strategy to solve the problem of poverty and the problem that is created by a lack of access to education,”