The World Bank estimates that the Panamanian economy will grow by 5.7 percent

ANDl World Bank (WB) estimates that it is economy of panama will grow by 5.7% in 2023 and 5.8% in 2024, according to an updated report on economic analyzes and forecasts presented by World Bank Chief Economist for Latin America and the Caribbean, William Maloney.

For Panama, we expect growth of 5.7% for this year, 5.8% and 5.9% for the next two years, for which the country’s performance compared to those in the region is quite good, the future seems quite solid,” he said. is indicated. Maloney.

This growth was driven by the service sector, led by wholesale and retail trade, transport, storage and communications. However, construction, manufacturing and mining also played an important role in Panama’s economic growth.

Before the COVID-19 pandemic, economy of panama it grew four times more than the regional average, which placed it in the category of high-income countries. From 2014 to 2019, Panama’s GDP grew at an average rate of 4.7%, while the LAC region grew at an average rate of 1.1 p%.

In 2020, GDP decreased by 18%, which is the most significant in the region due to the pandemic, according to the report.

He the world bank Panama’s fiscal deficit of 3.0% and 2.0% of GDP in 2023 and 2024 was also highlighted.

A new World Bank report, “Integration Potential. Opportunities in a Changing Global Economy”, indicates that “countries must preserve their hard-won resilience and take advantage of the unique opportunities offered by global economic trends towards nearshoring and green industry”.

Region of Latin America and the Caribbean (LAC) It has proved relatively resilient in the face of growing debt stress, persistent inflation and uncertainty surrounding Russia’s invasion of Ukraine.

Income and employment levels have generally recovered since the pandemic, poverty has been reduced and markets remain moderately optimistic about the near term, the World Bank detailed.

However, the winds are getting stronger and the outlook for 2023 is much darker than for 2022. Global uncertainty is growing, and while the world wishes it could put COVID19 behind it, the threat of new variants and diseases remains.

As for the countries of Central America, the World Bank lowered the outlook compared to January of this year for Costa Rica, which would have a growth of 2.7%, while they increased it to 2.3% for El Salvador and 3.2% for Guatemala. Honduras 3.5% and Nicaragua 3%.