Panama: Economic growth accelerates in Q2
September 14, 2013
In the second quarter, the economy expanded 7.7% over the same quarter last year, which was above the 7.0% rise registered in the first quarter. The acceleration mainly reflected stronger growth in the services sector (Q1: +7.6% year-on-year; Q2: +8.9% yoy), which is the largest component of Panama's economy. Within the services sector, construction surged 25.5% (Q1: +26.8% yoy), while growth in transport, storage and communications - which accounts for a quarter of total economic output - reached 7.5%, up from the 6.4% expansion recorded in Q1. Growth in the industrial sector in Q2 remained at the 8.1% registered in Q1, while the agricultural sector decelerated from a 5.2% expansion in Q1 to a 4.7% rise in Q2. The government expects economic growth to reach 8.5% in 2013. FocusEconomics Consensus Forecast panelists project the economy to grow 7.8% this year, which is down 0.1 percentage points from last month forecast. For 2014, the panel expects GDP to expand 6.9%.
Author: Carl Kelly, Economist