MIEA increase reflects the recovery process of the Panamanian economy

Anatoly Gaviria Sep 2, 2021

The Monthly Index of Economic Activity (IMAE) accumulated from January-June 2021 showed an increase of 4.85%, compared to the same period in 2020. This growth reflected that the economy is in a process of recovery, after the impact of the health emergency by COVID-19, according to a report from the National Institute of Statistics and Census (Inec).

The IMAE of June 2021, registered an increase of 24.91%, compared to the same month of the previous year, indicates the Inec.

Some of the economic categories that showed good performance were Mining, Commerce, Private Health Services, Public Administration, Transportation, Storage and Communications, Fishing, Electricity and Water, according to the INEC report.

Also, other community, social and personal service activities.

Among the sectors that presented negative rates were: Hotels and restaurants, Construction, Manufacturing industries, Financial intermediation, Agriculture and Real estate, business and rental activities.

The mining industry continued with a dynamic behavior, exporting copper ore and its concentrate, likewise, commercial activity in its main indicators such as re-exportation in metric tons from the Colon Free Zone, and local retail and wholesale trade.

Transport, storage and communications operations, as a whole, showed increases in Canal tolls, telecommunications, the movement of TEU containers of the National Port System and the commercial movement in the Colon Free Zone.

In the Electricity and Water category, the generation of renewable electricity and the consumption of electricity in the commercial, industrial and Government areas maintained a positive range.

Among the economic activities that presented positive interannual results (June 2021-June 2020), manufacturing industrial production presented positive rates in some activities related to the manufacture of food products.

The financial intermediation activity presented a favorable behavior, both in banking operations and in the insurance activity, which showed a higher volume of written premiums.

In the agricultural sector, positive behaviors were recorded in activities such as the production of natural milk, the rearing of cattle, pigs and poultry. In Construction, indicators related to the activity registered a favorable performance such as the production of cement and ready-mix concrete.

The provision of amusement and leisure services, mainly in betting in gambling halls of luck and chance, resulting from type A slot machines, and betting halls for sporting events registered positive rates.

The Monthly Index of Economic Activity (IMAE) and the Quarterly Gross Domestic Product (PIBT) are two economic indicators that allow us to approximate the path of the country’s economic growth. Due to their difference in data coverage, both indicators are not completely coincident, since the IMAE has a greater opportunity than the PIBT, but is affected by the lower coverage in its indicators.

In addition, the PIBT has 2007 as its reference year and the IMAE has a 1996 base year. The IMAE is an indicator of the production of the investigated economic sectors and the PIBT is a full value added indicator. Likewise, the effect of seasonality on the indicators considered affects the IMAE more than on the quarterly indicators of the PIBT.

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