Panama: Economic growth accelerates in Q3
December 21, 2013
In Q3 2013, the economy expanded a robust 9.0% over the same quarter of the previous year, which was above the 7.7% rise registered in the second quarter.
The acceleration mainly reflected stronger growth in the services sector (Q2: +8.9% year-on-year; Q3: +11.2% yoy), which is the largest component of Panama's economy. Within the services sector, construction surged 35.2% (Q2: +25.5% yoy), while growth in transport, storage and communications - which accounts for a quarter of total economic output - reached 11.5%, which was up from the 7.5% expansion recorded in Q2. Growth in the industrial sector increased from 8.1% in Q2 to 9.3% in Q3, while the agricultural sector slumped from a 4.7% rise in Q2 to a 1.9% contraction in Q3.
The government expects economic growth to reach 7.0% in 2014 and 6.5% in 2015. FocusEconomics Consensus Forecast panelists project that the economy will grow 6.9% in 2014, which is unchanged from last month forecast. For 2015, the panel expects GDP to expand 6.0%.
Author: Carl Kelly, Economist