Panama sees 2.1% growth in first half of 2024

Photo of author

By LatAm Reports Staff Writers

The Monthly Index of Economic Activity (Imae) reports a cumulative growth until the first half of the year of 2.12%.

The Monthly Economic Activity Index (Imae) recorded cumulative growth in the first half of 2.12%, which is higher than reported in the first quarter.

Although growth is lower than in the first half of last year (6.66%), it is close to what is projected by local and international agencies for this year.

The Imae accumulated in the first quarter was 1.42%, while the Gross Domestic Product (GDP) grew 1.7%.

At the year-on-year level, from June 2023 to June 2024, the sectors that showed growth were transport, storage and communications, financial intermediation, social and personal community activities of services and fisheries.

According to the analysis of the National Institute of Statistics and Census (Inec), the transport and communications sector was favored by activities such as cargo in the National Harbor System, the movement of containers, telecommunications, air transport and toll revenues from the Panama Canal.

On the financial intermediation side, it was favoured by an increase in the credit portfolio and deposits of the banking system.

As for fishing, there was greater catch of shrimp, fish and fish fillet, which are species intended for export.’

The International Monetary Fund (IMF) estimates growth for Panama of 2.5% in 2024.

JP Morgan, one of the world’s largest financial firms, improved its outlook for growth in the Panamanian economy by 3.5%.

Growth rates in the following years will be lower than in previous years, although this does not mean that the economy does not stop growing.

GDP grew 1.7% in the first quarter of the year.

Other activities that presented positive results were private education, domestic services in private homes and real estate, business and rental activities.

On the contrary, commercial activity recorded negative rates, as did construction, sectors characterized by being generators of many jobs.

On commercial activity, there was a decrease in the re-export of goods from the Columbus Free Zone, imports, sale of fuel and the number of new cars registered in the vehicle register.

Construction construcciónhad red numbers due to low activities related to private sector works and lower demand for basic inputs such as concrete and grey cement.

Subscribe to our newsletter .AlDayConPanamáAmerica

The news that matters straight to your inbox

It should be noted that public sector infrastructure works presented positive behaviour.

The industrial sector also decreased due to the decline in the production of some food products such as slaughter of cattle and pig slaughter and the production of chicken meat.

In agriculture, pineapple cultivation rose, while the cultivation of tomatoes and bananas destined for export decreased.

This article has been translated after first appearing in Panama America