Coronavirus  reduces Panama  growth projections

 The Bank of America in a Match 11 report   reduced projections of Panama’s economic growth due to the coronavirus

The projection for 2020 decreased from 3% to 2.5%, and from 4% to 3.8% for the year 2021.

Panama is a country of service, and changes in supply chains and consumption patterns would be reflected in the behavior of the economy.

It is the most open economy in the region, with the commercial exchange of goods and services above 80% of gross domestic product. About 5% of world trade passes through the Canal; and the country also houses the second largest free trade zone in America, Colon Free Zone, says the.

Analysts believe the Panamanian economy can serve as a barometer to measure the pulse of world trade, drivers of the slowdown and disruption of global supply chains reports La Prensa

The bank expects economic activity to likely pick up in 2021, but also believes that disruption of global supply chains is the greatest risk for Panama.

The Canal represents 46% of the exchange trade between East Asia and the East Coast of the United States and is relevant in trade between South American countries along the Pacific (Chile, Peru, Ecuador, and Colombia) and Europe.