News

Panama’s economy is performing better than expected, according to the latest Monthly Index of Economic Activity (IMAE) produced by the Comptroller General of the Republic. Based on strong performances in many sectors, including construction and mining, the economy grew by 6 percent in the first quarter, compared to the same quarter a year ago.

Not surprisingly, the Panama Canal played a large role, with container traffic increasing 15.1 percent in the quarter and toll revenues up 16.6 percent in the wake of the opening of the Canal expansion last year, La Estrella reports.

But this isn’t simply a Canal story. The best performing sectors in the quarter were construction, mining and quarrying, trade, transport, storage and communications, electricity and water, community activities and hotels, and restaurants, La Estrella reports. The performance of restaurants and hotels were an indicator of a strong quarter for tourism, the paper says.

Real estate was also among the sectors performing well, the paper reported, reflecting in part the increasing investor interest in properties.

The report indicates Panama is making good on predictions that the country would continue to expand its role as the business hub of Latin America. In a report released in March, the International Monetary Fund predicted Panama would “remain the most dynamic [economy] in the region.”
The performance of the economy in the first quarter illustrated many different aspects of what is happening in Panama. For example, the production of electricity and water increased, fueled by the greater generation of hydropower and solar energy. The construction is growing thanks to “the resumption of health sector projects, the progress of Line 2 Metro, the third bridge over the Canal and the expansion and improvements of the country’s road network,” according to La Estrella.