Panama: Economic activity posts quickest growth since July 2023 in November
Latest reading: Economic activity rose 9.4% in year-on-year terms in November, which followed October’s 8.5% increase. November’s print marked the best reading since July 2023. Looking at the details of the release, growth strengthened in the agricultural, commerce, hospitality, manufacturing, trade and transport sectors. On the flipside, construction plus mining and quarrying activity contracted, while activity elsewhere in the economy lost steam.
Meanwhile, the trend improved, with the annual average growth of economic activity coming in at 3.5%, up from October’s 2.6%.
Panelist insight: EIU analysts commented on the outlook:
“Economic growth will pick up in 2025, after the closure of Cobre Panamá hit output and exports in 2024. Private consumption growth will pick up slightly amid low inflation; however, an elevated unemployment rate and high levels of labour informality will prevent faster growth. Fiscal adjustment will dampen government consumption and also impact overall investment. Nevertheless, investment is set to remain a bright spot and growth driver, reflecting major public works projects.”