Panama’s economy grew 14.9% in 2021

Anatoly Gaviria Dec 24, 2021

The Panamanian economy registered an accumulated growth of 14.9% Gross Domestic Product (GDP) in the first nine months of 2021 according to the National Institute of Statistics and Census (INEC) of the Comptroller General of the Republic.

The Report highlights that the performance of the economy of Panama in the third quarter of 2021, measured through the Quarterly Gross Domestic Product (GDPT), showed an increase of 25.5%, compared to the similar period of the previous year. The PIBT valued at 2007 prices, registered an amount of $ 10,337.7 million for the compiled quarter, which corresponds to an increase of $ 2,100.3 million.

The sectors that promote economic recovery, cited by the head of the Ministry of Economy and Finance (MEF) are: mining, construction, wholesale and retail trade and all activities related to the interoceanic Canal and the logistics system.

The Minister of Economy and Finance visualizes that the economy will continue to have significant growth in 2021. At the same time, he stated that he had previously estimated that the production we had in 2019 could be recovered in 2023, however, because of the fast recovery it could recover in the year 2022.

The INEC analyzes that for the third quarter the behavior of the different economic activities is a reflection of the economic reactivation since the elimination of the sanitary restrictions imposed by the health authorities due to the Covid-19 pandemic. Good performance in service activities, particularly trade, transportation, business, personal, among others, allowed GDP growth in the quarter.

At the level of the activities that are part of the internal economy, the following stood out: the manufacturing industry, construction, electricity and water; commerce, restaurants and hotels; transportation, real estate and business, private health, personal and government services, within agricultural activities, the cultivation of rice and corn; as well as the production of cattle whose slaughter increased by 9.8%, pigs by 15.5% and poultry by 15.8%. However, activities related to the financial sector showed decreases.

Among the activities that generated positive Added Values ​​due to the exchange with the rest of the world are: the exploitation of mines and quarries, by boosting the economy with the production of 87,272 tons of copper minerals and their concentrates; the Panama Canal with an increase of 12.0% in tolls, mainly those related to the transit of neopanamax vessels in 17.7%; port operations as a result of the higher movement of TEU containers in 12.9%; the re-exports of the Colon Free Zone in 19.5%. Meanwhile, banana and fish exports showed decreases of 26.5% and 24.9% respectively.

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