Panama’s economy grew 8.9% before anti-mining protests

Panama’s economy grew of 8.9% in the first nine months of  2023, compared to the same period of the previous year,  but the effects of the anti-mining protests will not be seen until the first quarter of next year.

 The gross domestic product (GDP) reached $57,639.7 million from January to September 2023, according to information released on Friday, December 29. The increase represents an additional contribution of $4,687.9 million compared to the same period in 2022, according to the Comptroller General.

During the third quarter of the year (July to September), the performance of the Panamanian economy showed an increase of 9%, compared to the similar period of the previous year.

Construction

The increase in quarterly GDP is mainly attributed to domestic sectors, such as construction, with an increase of 34.8% in the value of permits and 15.5% in car sales. Other sectors, such as the manufacturing industry, thermal electricity generation, and land transportation, with increases in passengers on the Metro and Mi Bus, contributed significantly.

During October and November, the economy slowed down, after intense weeks of protests and citizen complaints against the exploitation contract of the Cobre Panamá mine with the Canadian company First Quantum Minerals.

Finally, on November 28, the Supreme Court declared Law 406 unconstitutional, which contains the controversial contract approved by the National Assembly and the Executive.

The weeks of protests left losses of at least $1 billion for the economy, according to calculations by business unions.

These losses have changed the economic growth projection, which stood at 6% at the end of this year, to range between 5% and 4%, according to official estimates.