Panama: Economic activity accelerates in May
July 26, 2012
In May, the economy expanded 8.7% over the same month last year, which was above the 8.4% increase recorded in April (previously reported: +7.8% year-on-year), according to the monthly indicator for economic activity (IMAE, Indice Mensual de Actividad Economica). Gains in the construction as well as in the transport sectors were the biggest drivers behind the monthly expansion. A month-on-month analysis, however, does not corroborate the acceleration suggested by annual figures, as economic activity increased 0.50% in seasonally adjusted terms in May, which was down from April's 1.67% expansion. Despite the faster annual growth recorded in May, the trend deteriorated slightly, with annual average growth in economic activity falling from 8.8% in April to 8.6%. Growth in economic activity should remain strong going forward, fuelled by ongoing investment in a project that aims to double the capacity of the Panama Canal by 2014.