Panama is leading a stronger-than-expected economy in Latin America in 2023, according to the Economic Commission for Latin America and the Caribbean (ECLAC). The U.N. agency recently announced it has raised its regional growth forecast for 2023 to 1.7%, up from the 1.2% predicted in April.
While the growth numbers represent a relative slowdown from recent years, Panama is leading the way in Latin America, with a projected 5.1% increase this year. That positive performance will far surpass most established countries around the region, as well as the world.
Most of the world economy “remains on a path of low economic growth,” the agency concludes in its most recent report. In sharp contrast to Panama, Mexico is growing at 2.9%, Brazil at 2.5%, and Chile and Argentina are facing shrinking economies.
Panama roared back after the pandemic, bolstered by the strong foundation of the economy. We certainly saw that in the real estate market, where interest and sales surged in the wake of the pandemic, as buyers once again saw Panama as a haven amid the global economic turmoil.
Global economic issues remain “complex,” with many issues facing the larger countries, including restrictive monetary policies and the effect of climate change, the agency reports.
The other countries in the region to post positive growth in 2023 are Paraguay (4.2%, Costa Rica (3.8%) and Venezuela (3.2%).