The World Bank projects that Panama will grow 6.5% this year, which represents one of the highest growth rates for the region. In Latin America and the Caribbean, Panama would be the fifth economy with the highest growth rate this year, behind Guyana (47.9%), Barbados (11.2%), Saint Lucia (7.9%) and Dominica (6.8%).
For 2023 and 2024, the international organization projects growth for Panama of 5% in both exercises.
The growing trend of the economy will continue in the coming years, after the strong contraction of 17.9% in 2020, as a result of the restrictions imposed by the Government to contain the pandemic. This drop was partially offset in 2021, with a growth of 15.3% caused by the lifting of restrictions and increased economic activity.
The Ministry of Economy and Finance of Panama estimates that this year it will be possible to recover the level of gross domestic product (GDP) prior to the pandemic. One of the Executive’s commitments to achieve this convergence is the activation of construction through projects awarded under the turnkey model, and with a repayment scheme of 50% halfway through the work and the remaining 50% upon completion. conclusion.
Panama is recovering from the crisis caused by the pandemic, as is Latin America as a whole. After a 6.9% rebound in 2021, the region’s GDP is expected to grow 2.3% this year and an additional 2.2% in 2023.
“These modest projections place regional growth among the lowest in the world at a time when the region faces great uncertainties, such as the possible appearance of new variants of the coronavirus, an increase in inflationary pressure and the war in Europe, which threatens the global recovery,” according to the World Bank.
The Washington-based agency highlights on the positive side the progress of the vaccination process in the region, the restart of classes in schools and the fact that companies have rehired personnel, but warns of “long-term consequences” that “persist and they need attention.”
