Free Zone in $1 billion free fall

THE MOVEMENT of goods through the Colón Free Zone fell  by $1 billion  in the first two montha of the year, a drop of 28.7 percent, compared with the same period in 2015.

The total transactions fell from $3.5 billion to $2.5 billion.

The good news is, according to La Prensa that  figures for February actually represent a slight improvement, considering that in January of this year, trading activity had fallen 34 percent compared to the same month in 2015.

The preliminary figures are part of a trend of falling commercial activity at the free zone, one of the largest in the world. Experts blame several factors, including a strong US dollar and economic problems in Colombia and Venezuela, two countries that traditionally provided a great deal of business for the zone.

The Association of Users of the Free Zone have called on the government to make policy changes to help reverse the downward trend. But any changes are unlikely to offset the global conditions impacting sales.

Compared to January and February 2013, economic activity at the zone fell 42.3 percent.