Panama’s economic activity grew 8.7% through August

Panama’s economic activity has increased 8.7% until August 2023according to the monthly index of economic activity (IMAE) estimated by the National Institute of Statistics and Population Census (INEC) of the General Superintendent of the Republic.

Among the main drivers of economic activity during the first eight months of 2023 are construction, trade, Colón free zone, transport and electricity generation.

According to INEC, building permits increased by 52.3%, driven by dynamics in the province of Panama and the districts of Aguadulce, David, Santiago, La Chorrera, Chitré, Arraiján and Colón.

In the store, the sale of new cars stands out, which increased by 21.9 percent. Likewise, trade in the Colón Free Zone, which grew by 33.5%, where imports grew by 46.4% and re-exports by 16.4%.

for his part, sales of fuel for national consumption increased by 12.6%, with an increase in gasoline (8.5%), low sulfur diesel (4.3%), bunker C (51.9%), liquefied petroleum gas (2.6%) and others (27.6%).

In addition, the net sales of lottery tickets and tickets of the National Humanitarian Lottery increased by 11.4%.

Dynamics were also shown in the production of electricity, which increased by 5.2%.

There is also a visible increase in employment contracts registered in the Ministry of Labor and Development (Mitradel), which recorded a growth of 16.8%.

In terms of employment, INEC figures show that in August 2023 employment levels recovered from August 2019. In August 2019, there were 1,920,642 employed, and in August 2023 a total of 1,938,616 employed. Unemployment decreased from August 2020 to August 2023 from 18.5% to 7.4%.

In terms of prices, Panama maintains one of the lowest inflation rates in the world. In the accumulated period from January to October 2023, the consumer price index increased by only 1.4%.

Panama maintains an investment grade rating with the three major risk rating agencies, Standard and Poor’s, Fitch Ratings and Moody’s.