News

While many countries around the world continue to struggle, Panama’s gross domestic product rose 4.9 percent in the first half of the year compared to the same period of 2015.

Real estate played a big role in that increase. Construction, financial services and real estate were among the key growth drivers, according to the data released by the General Comptroller. The economy was particularly strong in the second quarter, when the GDP jumped 5.2 percent, compared to 4.6 percent in the first, the Comptroller reports.

Panama’s continued growth is a sharp contrast to the rest of the world, where growth is hard to find. The U.S.’s economy is expected to grow less than 3 percent this year, while China continues to slow and Europe struggles with a myriad of issues.  The global economy is expected to grow by closer to 3.5 percent in 2016.

Panama is easily the fastest growing economy in Latin America, with both Brazil and Mexico struggling. Earlier this year the International Monetary Fund projected that Panama’s economic growth would be among the top in the world. The IMF cited the country’s strong fundamentals and low inflation as helping Panama weather any global economic storm.

Panama’s economy was expected to slow in the wake of the completion of the Panama Canal expansion, but the government continues to invest in infrastructure. New roads and the extension of the Panama metro are among several projects helping to fuel the economy and improve the atmosphere for investment.