Analysts expect Panama’s economy to roar back in 2021, as COVID-19 fears subside and the government continues its orderly reopening.
The Chamber of Commerce, Industries, and Agriculture of Panama forecasts the economy will grow by 7.2 percent in 2021, according to coverage in La Estrella. By 2022, the economy should be in full recovery, thanks to the country’s strong foundation, including the commerce, logistics, and agricultural sectors.
The recovery is “going to be a process” and the next year will be “complex,” but factors such as corporate investment and a healthy export market should boost the rebound, said the director of economic affairs for the group, Manuel Ferreira.
This is the type of assessment we’re hearing from economic analysts, who are looking beyond the current situation. Everyone knows the 2020 numbers are bad. They are meaningless, considering the whole world has been shut down. What matters is how the economy will recover.
At Punta Pacifica Realty, we’ve already seen those signs. Panama Real Estate sales started to bounce back in August, even before the airport reopened, as investors recognized a historic buying opportunity.
The business community recognizes Panama’s fundamental economic strength, powered by such drivers as the Panama Canal and Cobre Panama mining operation which will quickly return to pre-pandemic form. Panama is routinely cited as a market that will see quick returns in the post-pandemic market.
In a press briefing, last week National Director of Statistics and Census (INEC) Samuel Moreno said the market is already showing signs of recovery. The outlook still remains “complex” for the next few months, but the indicators are already on an upward trend, with the country restarting and Tocumen International Airport open for flights.
“The metrics of the economy of Panama, at the end of 2020, mark an improvement trend with the reactivation of activities such as air transport, retail and wholesale trade, and the export sector,” according to the General Comptroller’s Office.