## Press Release: Statement by IMF Managing Director Dominique Strauss-Kahn at the Conclusion of His Visit to Panama

_IMF News, February 28, 2011_

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**Canonical URL:** [Press Release: Statement by IMF Managing Director Dominique Strauss-Kahn at the Conclusion of His Visit to Panama](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr1157)

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## Bibliographic details
- Published: February 28, 2011

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### Visit summary and meetings
- Press Release No. 11/57; February 28, 2011.
- Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), concluded his first visit to Panama as Managing Director.
- Meetings held with:
  - President Ricardo Martinelli Berrocal
  - Finance Minister Alberto Vallarino Clement and his team
  - Financial sector authorities
- Emphasis on warm hospitality and “interesting and productive discussions.”

### Economic performance and outlook
- Panama “is expected to remain one of the fastest-growing countries of the Americas.”
- Recent performance:
  - The economy grew in 2009, when output in the region shrunk.
  - Expanded by 7 percent in 2010.
  - Is expected to continue to grow rapidly in 2011.
- Identified pillars of performance:
  - Prudent macroeconomic policies
  - A strong banking system
  - Dynamic investment in infrastructure

### Risks highlighted
- Inflationary pressures could intensify owing to:
  - The impact of higher world commodity prices
  - Low unemployment
  - The ambitious public investment program
- Notwithstanding the strong anchor of the U.S. dollar, these factors could increase inflationary risks.

### Policy recommendations and financial-sector resilience
- Encouraged the economic team to:
  - Build on the recent tax reforms
  - Continue with a policy of gradual fiscal consolidation to keep domestic demand in check and prevent overheating
- Welcomed authorities’ plans to deepen the financial sector’s resilience to shocks.

### Social strategy and structural reforms
- Welcomed the government’s long-term economic and social strategy aiming to:
  - Expand economic opportunities
  - Reduce growth bottlenecks
- Stressed that broad-based reforms that boost productivity:
  - Provide the strongest assurance that the benefits of current prosperity will be widely shared
  - Contribute to reducing poverty and inequality
- Commended ongoing efforts to:
  - Expand and upgrade the country’s social safety net
  - Improve public transportation, education, health, and water and sanitation infrastructure

*Source: Press Release No. 11/57, February 28, 2011, International Monetary Fund.*

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## References

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_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr1157_