Another major global economic institution is predicting that Panama’s economy will lead the regional recovery in the years ahead.
In this case, the forecast comes from the esteemed International Monetary Fund (IMF), which is officially “optimistic” about Panama’s future, predicting a 12 percent jump in economic activity in 2021. In addition to the rollout of vaccinations, the forecast is based on “production of copper at full scale and the recovery of private investment.”
The IMF is echoing the predictions of several top analysts, who point to the underlying strength of Panama’s economy. The Economist recently pegged the 2021 growth rate at 11 percent, citing many of the same factors as the IMF.
The IMF forecast was part of a “Concluding Statement” issued by staff at the end of an official mission to the country. The staff conducts a detailed review of many programs and economic indicators to determine how the country is performing and the factors affecting the economy.
“A rebound in the global economy and supportive macroeconomic policies, have helped underpin a recovery in Panama,” the IMF concludes.
While there are many factors that may dampen the results, Panama’s strong economic foundation should create more stability and quicken the recovery, analysts agree. In addition to the Cobre Panama mine, the Panama Canal and a variety of large infrastructure projects, such as the Panama metro, will continue to create a strong base for the economy.
“Over the medium term, growth is expected to stabilize at its potential growth rate of 5 percent,” the IMF concludes. “Inflation is expected to pick up to ½ percent in 2021 amid accelerating economic activity and stabilize at 2 percent in the medium term.
Those numbers bode well for the real estate market, ensuring there will be a steady stream of buyers and renters in the years ahead.