The skyline in Panama City, Panama

Panama Economic Activity March 2021

Panama: Decline in economic activity softens in March

Economic activity decreased 6.0% year-on-year in March, up from February’s 9.7% decline, as activity likely benefited from the lifting of weekend curfews in several regions and the reopening of some leisure activities on 6 March. March’s result was also supported by a resilient mining subsector thanks to output from the large Cobre Panama copper mine. March’s print marked the best result since March 2020.

Meanwhile, the trend pointed down, with the annual average variation of economic activity coming in at minus 18.7%, down from February’s minus 18.2%.

Looking to Q2, the slight easing of domestic restrictions announced in late April will have bolstered activity from the second half of the month on, notwithstanding a ban on travelers on South America. Meanwhile, robust mining should continue to buttress overall output.

On the broader outlook for this year, analysts at EIU commented:

“A rebound in global activity will support Panama’s recovery; we forecast that real GDP will expand by 11% in 2021, notwithstanding a weak start to the year caused by a second wave of coronavirus cases and a lockdown in January–February (when output fell by 12.2% year on year). Our forecast for a rebound assumes that a steady vaccine rollout will allow activity to pick up and construction and communications to resume after being hit badly last year.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest