Panama: Economic activity slips back down in June
August 24, 2015
In June, the monthly indicator for economic activity (IMAE, Indice Mensual de Actividad Economica) expanded 3.4% over the same month last year, which was below the 3.6% growth tallied in May. May’s figure had marked the first acceleration in five months and June’s slowdown returns the IMAE to its downward trend. According to the National Comptroller’s Office, the increase in June was driven by growth in several sectors of the economy, including transport, warehousing and communications, mining and quarrying, and financial intermediation. Meanwhile, despite the ongoing slowdown of work on the Panama Canal expansion project, the construction sector showed positive growth due to activity related to the private sector. The deceleration was due to a slower pace of expansion in the other sectors of the economy, including industrial manufacturing, alongside the reduction in activity associated with the canal expansion project.
On a month-on-month basis, economic activity in June increased 0.47% in seasonally-adjusted terms, down from the 0.81% increase recorded in May. Meanwhile, the overall trend inched down; annual average growth in economic activity in June fell to 4.6% from May’s 4.7%.
Author: Robert Hill, Economist