The World Bank is out with its latest forecasts for Latin American economies in 2024 and once again Panama is picked to lead the way.
Panama’s economy will grow 4.6% the revered institution predicts, which is a slight decrease from the strong 5.3% growth the country is expected to post for 2023, when final numbers are tallied. Even with the disruption around the Cobre Panama copper mine shutdown and the impact of El Nino, Panama’s economy will remain stable for the years ahead, the World Bank predicts
Panama’s economy will outpace the rest of Central America, which is expected to grow by 3.7% in 2024 and 3.8% in 2025, after an uptick of 4.1% in 2023. It is also expected to perform better than the overall global economy, which the World Bank estimates will grow 2.4% in 2024, after a 2.6% increase in 2023. It is the third consecutive year the global economy will slow, in large part due to political turmoil and the war in Ukraine.
The 2024 global rate is three-quarters of a percentage point below the average for the 2010s, coverage in El Capital Financero notes.
The World Bank report notes that the overall Latin America and Caribbean region experienced a significant economic slowdown in 2023, with growth of just 2.2%. That can be attributed to high inflation, restrictive monetary conditions, weak global trade, and adverse weather events. A gradual recovery is forecast, with a 2.4% increase in economic activity in 2024 and 2.5% in 2025.
Panama continues to serve as the economic engine of the region, with a diverse and stable economy that continues to expand, despite the headwinds slowing other countries.