Panama’s Economy Grew 2.2% in the First Half of 2024

Panama’s economy continues to grow, although at a slower pace than in previous years. At the end of the first half of 2024, the country’s gross domestic product showed growth of 2.2%, according to the latest data from the National Institute of Statistics and Census (INEC).  The half-year GDP, with a reference year of 2018, reached a total of $38,645.7 million, which represents an accumulated increase of $814.3 million compared to the same period in 2023.  During the second quarter of 2024, the quarterly gross domestic product (GDP) at constant prices showed an increase of 2.5%, reaching $18,247.8 million.  This rate represented an increase of $444.0 million compared to the second quarter of the previous year, attributed mainly to a series of key activities in the domestic economy.  Among the sectors that drove this growth are:  Construction: Investment in public infrastructure projects has been one of the main drivers of growth in this sector, INEC noted.  Land Transport: The increase in passengers on the Panama Metro by 7.9% and the increase in traffic on road corridors by 6.1% have contributed significantly.  Trade: The wholesale and retail sector saw a 6.4% rise, especially in food and automobile sales, according to official figures.  Financial Sector: Loan balances increased by 7.0%, highlighting confidence in the financial system.  Tourism: Hotels experienced a notable growth of 13.2% due to increased tourism.  Telecommunications:  This sector saw an increase of 1.5%, along with real estate, business and other services activities.  However, he said that not all sectors experienced growth. Cattle production, for example, fell by 6.6%, while pig production registered a drop of 5.8%.  In the external sector, some activities stood out for their positive impact:  Port Services: Cargo movement drove an increase of 18.2%.  Air Transport: The number of passengers at Tocumen International Airport grew by 8.3%.  Fisheries Exports: Shrimp registered a significant increase of 82.9%, while fish exports grew by 8.5%.  On the other hand, he added, there were declines in sectors such as Panama Canal toll revenues, which decreased by 11.7%, and in the activities of the Colon Free Zone, with a contraction of 12.5%.  Mining and quarrying operations were also affected by the closure of a major copper mine, he said.