Panama raised its economic growth forecast to 6 percent

Government of Panama raised to a 6%with the previous 5%, forecast growth of the gross domestic product (GDP) this year 2023, given the “strong” dynamics represented by the service economy of this Central American country, he reported this Wednesday Ministry of Economy and Finance (MEF).

This new government forecast is higher than the 5.1% estimated for the country Economic Commission for Latin America and the Caribbean (ECLAC) in his latest report, in which he adjusted this year’s growth in the region from 1.2% to 1.7%.

Panamanian Minister of Economy and Finance, Hector Alexanderhe said the engines driving “strong growth in 2023 are trade, construction, tourism, banking, insurance, transport and electricity, among others,” according to an official statement.

The dynamism of Panama’s service-based economy “is robust,” as evidenced by facts such as the fact that new car sales rose 22.2 percent in the first half of this year, while the value of construction permits was higher. 66.1 percent, and the production of ready-mixed concrete 20.8 percent, explained the minister.

Panama’s economy grew by 15.8% 2021. ia 10.8% 2022, and the 6% rate expected for this year is “the highest, before the pandemic, recorded in Panama since 2014,” according to the MEF.

Panama’s GDP fell 17.8% in 2020 due to the almost complete paralysis of the economy due to the extraordinary health situation due to covid 19.

“Until 2024, Minister Alexander confirms that economic growth will be 5% supported by the logistics and digital hub (air, maritime and land transport and telecommunications); manufacturing industry (assembly, packaging and export of chips); tourism (cruises, congress center and recreational tourism); construction (public and private investments); trade, financial intermediation and electric energy”, emphasized UPCG.