One of the top economic analyst groups has come out with a new report that predicts Panama’s economic growth will lead the region.
The Economic Commission for Latin America and the Caribbean says Panama’s economy will expand by 7% this year, by far the top performer in the region. The group says that the next closest competitor would be Guatemala, which is expected to see a 4% increase. Only Venezuela is expected to post a higher growth number, but that’s coming from a depressed state.
Considering that many countries, including the United States, are teetering in recession or posting minimal growth, Panama’s growth is particularly impressive. ECLAC projects an average economic growth in the region of 2.7%, “in a context of strong macroeconomic restrictions that are hitting the economies of the region,” Forbes reports.
This week ECLAC raised its estimated growth forecast in the region for 2022 from 1.8% to 2.7%, although it warned that the scenario is “very complex,” in large part because Panama’s performance is expected to far outpace most of the region.
The data is further evidence that Panama’s strong economic foundation will help it overcome the global turmoil. While many countries are expecting little growth, Panama’s mining, infrastructure, and global trade businesses will prove resilient against inflation and the ebbs and flows of other countries, analysts predict.
“The rise in the price of raw materials has benefited the countries of the region that export primary goods, particularly hydrocarbons and food,” the agency predicts.
One thing we’ve learned: Panama’s continued economic growth directly affects the real estate market, providing a steady stream of buyers and renters.