Panama: Economic activity slows in September
November 28, 2012
In September, the economy expanded 7.8% over the same month last year, which was below the revised 9.3% increase recorded in August (previously reported: +6.9% year-on-year), according to the monthly indicator for economic activity (IMAE, Indice Mensual de Actividad Economica). The monthly expansion was mainly driven by robust growth in construction, mining, social and personal services as well as in transport and storage. A month-on-month analysis, however, does not corroborate the deceleration suggested by annual figures, as economic activity increased 1.04% in seasonally adjusted terms in September, up from the 0.65% expansion observed in August. As a result of the softer annual growth in September, the upward trend broadly in place since the start of 2010 seems to have stabilized, with annual average growth in economic activity inching down from 9.9% in August to 9.8%. 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.