Another agency is upping its forecast for Panama’s economic growth. Panama’s Ministry of Economy and Finance now says Panama’s economic activity will expand by 6% in 2023, up from its previous prediction of 5%.
Minister of Economy and Finance Héctor Alexander told El Capital Financiero that Panama’s economy is “robust,” after a strong first half of 2023. The government’s monthly economic activity index was up 7.3% from Jan. to June, thanks to strong results in commerce, construction, tourism, and transportation. The agency also affirmed that growth will continue in 2025 at a projected 5% rate.
The report comes just days after the Economic Commission for Latin America and the Caribbean (ECLAC) raised its regional growth forecast for 2023, led by a projected 5.1% increase in Panama’s economy.
The strength of the economy is one of the many factors that sets Panama apart from other real estate markets. The property market has been resilient through massive global fluctuations, and the recent numbers illustrate that Panama is once again a winner in the global competition.
Many factors influenced the bullish results from the first half, including a 66.1% jump in the value of construction permits. That fits with an increase in new building announcements we’ve seen in the real estate sector.
Learn more about the latest market trends in PPR managing director Jeff Barton’s Panama Real Estate Market Update video:
Tourist entries, another bullish indicator for the property market, also saw a big jump in the first half, rising 37.7%. The economy is also having a widespread effect on Panama. From September 2020 to April 2022, there was an employment growth of 13%, of which 92% was formal employment.
Future growth will be supported by the expansion of Panama’s logistics and digital hub the manufacturing industry, tourism and construction, Alexander told the paper.