In the News from Panama

World Bank Ups Forecast for Panama Economy

According to the World Bank, Panama will lead economic growth in Latin America in 2023. In fact, the international financial institution has raised its economic forecast for the country, reflecting its “impressive” rebound from the COVID pandemic.

The World Bank now predicts the Panama economy will grow 5.7% in 2023, up from its original forecast of 4.5%. And the growth rate should continue, with upticks of 5.8% and 5.9% in the next two years, according to the World Bank’s recent report, “The Promise of Integration: Opportunities in a Changing Global Economy.”

As we’ve seen over the years, there is a direct correlation between the strength of the economy and the Panama real estate business. Growth means more multinationals moving to Panama and a larger pool of renters and buyers.

In the wake of the pandemic, Panama’s economy jumped 15.3% in 2021 and 10.5% in 2022, but those rates were unsustainable in a normalized economy. The latest data reflects a steadily growing economy that should remain resilient despite the international turmoil.

“Panama has been an example of how we can overcome difficult situations,” said the Inter-American Development Bank (IDB) president, Ilan Goldfajn. “The economic performance of this country over time has been impressive.”

Goldfajn stressed that Panama “has adopted an intelligent and non-partisan approach” with the management of the Canal,” and its infrastructure, and has “focused on efficiency over politics,” as reported by El Capital Financiero.

The World Bank’s data reflect an economy based on a strong foundation, including the Canal, mining operations, and large-scale infrastructure projects

At the end of the year 2023, the economic performance together with the adequate management of public finances, “allow us to glimpse that the country is heading towards the path of sustainable economic growth and job creation, consolidating macroeconomic stability and promoting the confidence of the investors,” Minister of Economy and Finance Héctor Alexander told the paper.