Sharp drop in Panama construction activity

Panama’s Construction  Industry Chamber (Capac) reports “a sharp drop” in its contribution to the country’s Gross Domestic Product (GDP).

“What is reflected in the contraction of investments and a direct effect on the increase in unemployment in the sector,” the union said in a statement.

According to Capac, official figures from the National Institute of Statistics and Census (INEC) indicate that the participation of the construction sector in GDP in 2019 -before the pandemic- was 14.5%.

In 2020 -in the middle of the pandemic- it was 5.5% and there was a slight recovery in the third quarter to 8.8%.

“A comparison of contributions to GDP by the construction sector indicates that in the third quarter of 2019 it reached $1,551.8 billion, in the same period of 2020 $450.2 million and in 2021 it was placed at $907 million, well below the figure before the pandemic, ”says the organization.

Another important indicator, says Capac, is that of the investments in construction declared to obtain approval of plans in the district of Panama and half a dozen of the main districts of the country.

Currently the construction sector occupies 8.2% of the economically active population, it adds.