Panama dodges another bullet
(laestrella.com.pa) Although there is a global economic slowdown, in 2008 the sending and receipt and receipt of remittances continued to climb.
Panama Star According to a study carried out by the Pew Center, 68 percent of Hispanics living in the United States, have stop sending money to their countries of origin because of the acute economic siatuation.
For example, remittances sent through Western Union, one of the world’ leader in the transfer of money by Mexican immigrants –the majority of them from the United States- have gone down by 12 percent since April last year.
Of course, Mexico is not the only example. The remittances that arrived from Ecuador during September-December 2008, of $711 million were 7.5 percent lower than those registered in 2007, according the Central Bank of Ecuador BCE (Banco Central de Ecuador).
Because of the economic crisis, cases like Mexico and Ecuador are abundant throughout Latin America.
Panama has faired well in the unstable market and there were no deficits in the remittances sent and received.
The Commerce and Industry Ministry said that up to July-September 2008 around 1,733 were sent from Panama, with a total value of $376,954.35. While in 2007, during the same period 905 remittances were sent, worth $190,202.99. That represented a 5 percent increase.
Remittances that entered the country also registered growth. Between July-September 2008 1,736 remittances arrived to the country with a value of $251,280.32 which is higher than the same period in 2007, when 965 remittances arrived with a value of $179,678.31.
Although the majority of local remittance houses considered that 2008 was competitive, the general manager of Money Grand Panama, Rolando Núñez said that during the last two months his company has beginning to feel the effects of the global crisis.
In the past, a foreigner living in Panama used to send $800 to his relatives, currently he will only send $300.
Despite this, Money Grand closed 2008 with an increment of 30 percent in its transactions in comparison with 2007.
However, Nuñez said that the entry remittances suffered the most and went down by 10 percent, because the great majority of then came from United States and Europe.
The economist Adolfo Quintero said that the real factor is that foreigners have kept their jobs and they will continue sending money to their relatives in their countries of origin.
