This paper estimates medium-term potential growth for a country undergoing significant
structural and secular changes. Our forward-looking framework, incorporating three
analytical approaches for examining economic prospects, constitutes an important
complement to typical backward-looking methods that filter or extrapolate historical data. In
particular, the opening of the expanded Panama Canal in 2016 highlights significant
structural changes underway in the Panamanian economy. We first analyze growth
determinants and find that Panama is well-placed to maintain its business model, with
improvements in education and governance important to support growth. Second, the current
pipeline of investment projects can help sustain investment-led growth, although at a more
moderate pace. Third, further development of the logistics and tourism sectors holds promise
to further build on Panama’s comparative advantage.
Strong policies, resilient markets, and an improved external environment have helped Singapore tide over the recession. Singapore has a strong track record of proactive and forward-looking economic policymaking. Fiscal policy has regained its traditional medium-term orientation. Official reserve accumulation has to be kept under review. Social safety nets are well placed. Singapore’s exchange rate regime continues to serve the economy well, and the Monetary Authority of Singapore’s exchange-rate-centered monetary framework has been an important source of stability in times of economic turbulence.