Panama’s economy will continue to expand over the next months, even as the world economies contract, the World Bank reported this week.
Panama will be among the leaders in the region, with one of the largest growth rates among the larger nations. Overall, the Central American economy will expand by 3.9% in 2022 and 3.5% in 2023, the World Bank predicts.
Many of the regional economies are closely tied to the United States, the primary trade partner in the region, and will be affected by the economic slowdown which is starting to hit the country. But Panama’s diversified economy and key role in global trade will help insulate it from the troubles in the U.S., analysts say.
“The regional slowdown reflects the tightening of the financial situation, the weakening of the growth of external demand, the rapid inflation, and the great uncertainty in terms of policies in some countries,” the World Bank reports. “The gross domestic product per capita of the entire [Central America] region is expected to increase by only 0.6% between 2019 and 2023.”
Panama’s strength will stand out, and it’s one of the reasons the Panama real estate market tends to improve during tough global times. The local economy, stability, and the country’s strength as an alternative to problems in other parts of the world help the real estate market resilient to the ebbs and flows of other markets.
Other economic analysts tend to agree with the World Bank’s view of Panama’s economic prospects. In May, the United Nations Regional Economic Commission for Latin America and the Caribbean (ECLAC) reaffirmed its projection that Panama’s economy will grow by a healthy 6.3% in 2022. Government data showed Panama’s economy rebounded by 15.3% in 2021.