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Orange economy generates 6.3% of the GDP

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  • Mon, 10/24/2016 - 14:58
Leguisamo said that orange economy is a "very informal sector"
  • Leguisamo said that orange economy is a "very informal sector"
  • EFE

PANAMA CITY.- Orange economy or cultural and creative industry in Panama contributes with 6.3% of gross domestic product (GDP), nearly triple that Canal of Panama, and generates more than 50,000 jobs, the general director of digital conglomerate openartspty.com, Lyann Leguisamo reported.

Leguisamo, told Efe that this figure is based on a recent study made by the World Intellectual Property Organization (WIPO) in collaboration with the Ministry of Trade and Industry (MICI, in Spanish).

Orange economy is "a sector that is so broad that goes beyond cultural activity, measuring the contribution of intellectual property", which means the architectural creations or advertising, craft and folk expressions, among others, Leguisamo detailed.

She agreed with Director of Public Policy at the Ministry of Economy and Finance of Panama, Gustavo Valderrama, that "it is still a very informal sector", making it difficult to accurately measure accurately by the State.

Therefore, official figures on the orange economy in Panama are a third part of the ones Leguisamo handles.

In addition, Orange economy is "100 percent renewable and creates jobs," argued the general director of the digital conglomerate.

Leguisamo based its figures on a recent study made by WIPO in cooperation with the Ministry of Trade and Industry, adding that this sector generates more than 50,000 jobs, 3.2% of the total.

The Canal of Panama only contributed 2.2% to the country's GDP in 2015 and it is expected to rise to 2.8% in 2018, the executive said to support the relevance of orange economy. Only the film industry attracted in 2016 23 million dollars in Foreign Direct Investment, which considered that "should be studied and regulated" in all its dimensions by the state.

The leader told Efe that if it were possible to formalize the whole sector of the Orange economy it would be very likely that its contribution to GDP rises two percentage points.

Meanwhile, Valderrama endorsed the importance of orange economy that, according to data from the Survey of Labour Market that he handles on the arts, entertainment and creativity, generated 17,214 jobs in 2014, in 2015 rose to 19,890 seats and this year will by 20,029 jobs.

He acknowledged that public spending on culture per capita is $6.5 in Panama, while the Latin American average is $ 19, and that difficulties are cultural entrepreneurship informality, inequality, little funding and investment and lack infrastructure or cultural spaces, among others.

Valderrama said she is forming an "interagency working group to evaluate a methodology to analyze and quantify the orange economy in Panama" and, meanwhile, is coordinating focus groups with people from different areas of this sector.

She cited figures to December 2015 of Ernst & Young consultant who estimated the orange economy generated 2,250 million (3% of world GDP) and 29.3 million jobs worldwide, of which $ 124 million and 1.9 million jobs were generated in Latin America.

EFE

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