Panama construction poised to come roaring back

The value of new construction and repairs during the first two months of the year reached $169 million, exceeding by 50.8% the 112.4 million reported in the same period last year.

With these numbers, the construction sector, one of the most affected by the restrictions during the pandemic, maintains the positive trend it achieved in 2022, when investment closed at $918 million, the first time, the sector exceeded the numbers of 2019.

In the first two months of 2019, investment in new projects and repairs reached $162.8 million, a figure that when compared with the first two months of this year, leaves a positive balance of $6.2 million.

As a result of the closure that the economy registered in 2020, the construction sector registered a 51% drop. In 2019, construction contributed 14.8% of GDP, slightly below the 15.2% and 15.3% reported in 2018 and 2017, respectively.

For 2023, the Panamanian Chamber of Construction (Capac) projects a growth of 10% and the union closely follows the program of “turnkey” projects carried out by the Ministry of Public Works.

This year, the 27 contracts that have already been tendered for 1.254 billion should enter into execution. Additionally, Capac expects the tenders for the projects under the Public-Private Partnership scheme to be completed, as well as the reactivation of the construction of the fourth bridge, a work that should generate between 4,000 and 5,000 jobs.

The greatest growth in new projects during the first two months was reported in the province of Panama Oeste, with increases of 218.9% in La Chorrera and 179.5% in Arraiján, while in the district of Panama investment grew 24%.

The demographic growth that the province of Panama Oeste has been registering in recent years has increased the pressure on public services such as water and electricity, caused supply cuts, and generated unrest among the residents of the area.