News

by Eddie Montes

Panama’s economy grew by 4.6 percent in January compared to a year, led by the growth of international.

The early data suggests the strong forecasts for Panama’s economic growth are on target. The economy is expected to grow by 5.6 percent in 2018, which would easily make it the leader in the region.

The gross domestic product grew by 5.4 percent in 2017, compared to 5.0 percent in 2016, according to government data.

Several fundamental initiatives are driving the growth, including the increased traffic through the Panama Canal and the launch of the ramp-up of the $6 billion Cobre Panama mining operation. The transport, storage and communication sectors grew by 10.1 percent in 2017, according to data from the National Institute of Statistics and Census (INEC). Panama Canal revenues increased by 16.1 percent year-over-year.

The construction sector, which is often a leading indicator of the economy, grew by 8.3 percent due to the wealth of public and private infrastructure projects, including the expansion of the Panama Metro, the construction of the Amador Convention Center and the start of construction on a new cruise port on Amador. Mines and quarry activity jumped 8.3 percent in 2017 and education services increased 7.8 percent, “due to the growth of the income received in private education at the secondary and university levels,” according to the government report.

In January, the early growth for 2018 was led by the continued expansion of the transportation, storage and communications sectors, Reuters reports.

For a list of trends to watch in 2018, click here.