News

While countries around the world are struggling to bolster their economies, Panama will continue to grow thanks to its “mega-projects,” economic experts said at a conference this week.

The Panama Canal will generate $1.4 billion for the economy in 2017, a 36.8 percent jump from 2016, Jorge Luis Quijano, administrator of the Panama Canal Authority told the Vision 2016 Forum organized by La Prensa, the newspaper.

But it’s not simply the Canal expansion, which will open this year, spurring growth. The Canal Authority expects to invest another $1 billion on various port projects, according to the La Prensa report.

There are several headwinds to the global economy, including declining prices for raw materials. But several projects should help keep people working and international companies involved in Panama.

Tocumen International Airport is also set to expand, said Joseph Fidanque III, general manager of the airport. There has a “dramatic” increase in airport revenues since 2013, he said. The master plan includes development of a new logistics loading area and a third runway.

More than 13.4 million people flowed through the airport in 2013 and that number is expected to grow this year, he told the audience at the Vision event.

In related news, Panama’s economy grew by 4.31 percent in November, up from 4.25 percent in October, Reuters reports. The jump was driven largely by a boost in telecommunications and transportation, according the government data. Overall, the government expects the data will show Panama’s economy has grown 6 percent for the full year.

While slower than past years, Panama is still the fastest growing economy in the region, surpassing many of the largest industrialized countries in the world, the data shows.