World Bank forecasts 2.5% growth for Panama

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By LatAm Reports Staff Writers

Table indicating that sectors are targeting foreign investment in Panama. Picture: World Bank

Panama will have the lowest economic growth in the Central American isthmus for this year, according to World Bank estimates, disclosed in its latest report.

The financial institution expects the Panamanian economy to grow only 2.5% in this electoral year, below Belize (3.5%), Guatemala (3.5%), Honduras (3.4%), Nicaragua (3.7%) and Costa Rica (3.9%).

In 2023, the economy grew 7.3%, according to data from the Ministry of Economy and Finance (MEF), above the 6.5% estimated by the World Bank.

After falling to this level, the international body estimates that in 2025, growth will rise to 3.5% and in 2026 to 4.0%

As part of its report on the state of the region, the World Bank refers to the trend of foreign direct investment (FDI) flows and how they have had sustained growth in countries such as Costa Rica, the Dominican Republic and Panama.

He refers to the fact that the main focus of FDI over the past 10 years in Panama was the mining sector.

However, in the Dominican Republic, this has taken a strategic turn towards diversification in hotels and accommodation and renewable energy.

In the Panamanian case, recent announcements are associated with renewable energy and deposits and storage, revealing a broader economic landscape.

Faced with the changes in mining activity, the country is looking for activities that enhance the growth of its economy, although those described by the World Bank have been popping up since before.

This article has been translated from the original which first appeared in Pan American