Panama: Economic activity moderates further in July
August 25, 2014
In July, the monthly indicator for economic activity (IMAE, Indice Mensual de Actividad Economica) expanded 4.3% over the same month last year, which was slightly below the 4.4% growth registered in June. The reading marked the weakest result since December 2009. According to the National Comptroller’s Office, the increase in July was driven by growth in several sectors, including transport, warehousing and communications, as well as in financial services and tourism. Meanwhile, the construction sector and mining and quarrying industry continued to show weakness amid the slowdown in work related to the Panama Canal expansion project.
On a month-on-month basis, economic activity in July increased 0.58% in seasonally-adjusted terms, which was just above the 0.54% increase recorded in June. July’s result marked the highest result in 10 months. Meanwhile, the overall trend continues to point downward; annual average growth in economic activity inched down from 6.5% in June to 6.2% in July, which represented the lowest reading since November 2010.
Author: Carl Kelly, Economist