Panama economy 4% growth, foreign investment surging

951Views 0Comments Posted 17/08/2019

The Panamanian economy is reflecting a growth of 4%, for 2019 smaller than the 4.5 predicted at the beginning of the year but foreign investment continues to surge says a Chamber of Commerce  (CCAIP)  economic report.

The Center for Economic Studies (CEECAM) reported that the economic indicators analyzed in Economic News are for  January to July of this year, as well as the results of surveys of expectations of companies and consumer confidence.

A Business Survey of members shows that for the third quarter of 2019, 35% of entrepreneurs indicate that their sales and income would increase, while 27% think they would decrease and 36% expect it to remain the same.

Manuel Ferreira, director of Economic Affairs of the Chamber, said that this result reveals the expectation of a slightly positive sales increase against a negative expectation in the previous quarter, which could be indicating the start of a rebound in economic activity with a view to a better situation in 2020.

Likewise, the Consumer Confidence Index (ICC) survey reflected a substantial increase of 26 points, which is an indication that consumers, like entrepreneurs, are optimistic, which will represent greater growth for the economy in 2020. Ferreira

The report shows that the amount of direct foreign  investment in 2018 was $5.548 billion, a growth of 21% and that this year it is still growing similarly with an increase of 18% in the first quarter of 2019, which indicates that Panama not only remains the largest foreign capital collector in Central America (with a 47% stake), but also that it remains very dynamic.

The economist mentioned that, although there is a slowdown in national economic activity at this time, CCIAP has positive expectations of future growth that will be strengthened starting in 2020.

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