Panama's
economy grew 2.2% in the first half of 2024
The
Panamanian economy closed the first half of 2024 with a growth of 2.2%,
attributed to the boost of sectors such as construction, land transport, trade,
tourism, port services and fishing exports, reported the National Institute of
Statistics and Census (INEC).
Source:
INEC/Bloomberg
From
January to June 2024, the Gross Domestic Product (GDP) reached US$38,645.7
million, that is, a year-on-year increase of US$814.3 million compared to the
same period in 2023.
INEC
data also highlights that GDP showed an increase of 2.5% in the second quarter
of 2024 compared to the same period of the previous year.
The
INEC report notes that the construction sector and investment in public
infrastructure projects contributed to the dynamism in the first six months of
the year.
Likewise,
land transport showed positive results, with a 7.9% increase in the number of
passengers on the Panama Metro and a 6.1% increase in traffic on the road
corridors.
The
tourism sector also registered a notable growth of 13.2% in hotel occupancy,
thanks to an increase in the arrival of international visitors.
Telecommunications grew by 1.5%, as did real estate, business and other
services activities.
In
trade, both the wholesale and retail sectors experienced a growth of 6.4%,
driven mainly by food and automobile sales. In the financial area, loan
balances increased by 7%, reflecting confidence in the system.
Fishing
exports also showed a positive performance, with an 82.9% increase in shrimp
exports and 8.5% in fish exports.
In
terms of port services, cargo movement increased by 18.2%, while the number of
passengers at Tocumen International Airport grew by 8.3%.
However,
not all sectors experienced growth. Cattle production decreased by 6.6%, and
pork production fell by 5.8%. In addition, there were declines in revenues from
Panama Canal tolls, which fell by 11.7%, and in the activities of the Colon
Free Zone, with a contraction of 12.5%.
The
exploitation of mines and quarries was also affected by the closure of the
Cobre Panama mine, operated by the Canadian company First Quantum Minerals and
which came to represent 2% of the world production of that mineral.
Information
and telecommunications activities showed a negative variation of 1.8%, due to
the decrease in demand for mobile telephony and services provided such as
internet and cable TV.
Nevertheless,
economic growth projections for Panama in 2024 are encouraging. The Economic
Commission for Latin America and the Caribbean (CEPAL) forecasts GDP growth of
2.7%.