© Portal. Panama government increases economic growth forecast for 2023 to 6%
Panama City, September 20 (.).- The government of Panama has raised the gross domestic product (GDP) growth forecast in 2023 to 6% from the previous 5%, as Panama’s service economy shows “robust” dynamics in this Central American The Ministry of Economy and Finance (MEF) reported this on Wednesday.
This new government forecast is higher than the 5.1% that the Economic Commission for Latin America and the Caribbean (ECLAC) estimated for the country in its latest report, in which it estimated the region’s growth this year from 1.2% to 1, adjusted 7%.
Panamanian Minister of Economy and Finance Héctor Alexander said that the engines that “drive strong growth in 2023 include trade, construction, tourism, banking, insurance, transport and electricity, among others,” in an official statement reported.
The dynamics of Panama’s service-based economy are “robust”, as shown, for example, by the fact that sales of new cars increased by 22.2% in the first half of this year, while the value of building permits increased by 66 .1% and the production of ready-mixed concrete 20.8%, the minister explained.
Panama’s economy grew 15.8% in 2021 and 10.8% in 2022, and the 6% rate expected this year is the “highest pre-pandemic rate observed in Panama since 2014,” explained the MEF.
Panama’s GDP fell 17.8% in 2020 as the economy was almost completely shut down due to the Covid-19 health emergency.
“By 2024, Minister Alexander reiterates that economic growth will be 5%, supported by the logistics and digital hub (air, sea and land transport and telecommunications), the manufacturing industry (assembly, packaging and export of chips), tourism ( cruises, convention center and leisure tourism); construction (public and private investments); trade, financial intermediation and electricity,” stated the MEF.