Panama: Economic growth remains resilient in third quarter
December 15, 2011
Despite increasing global headwinds, the economy managed to maintain growth momentum. In the third quarter, the economy expanded 10.4% over the same quarter the year before, which was slightly slower than the 11.4% rise registered in the second quarter. The deceleration over the previous period reflected slower growth in services, which are the largest component of Panama's economy. In particular, transport and logistics decelerated from a 15.1% expansion in the second quarter to a 10.8% increase in the third. Meanwhile, commerce was the main contributor to third quarter economic growth, accelerating from a 15.2% increase in the second quarter to a 21.2% rise in the third. Moreover, construction grew a whopping 23.8% in the third quarter (Q2: + 19.2% year-on-year). Similarly, the services sector expanded 13.3% in the third quarter following a 14.4% rise recorded in the second quarter. Manufacturing added 2.3% in the third quarter (Q2: + 3.5% yoy), while agriculture expanded 3.2% in the third quarter (Q2: +5.7% yoy). The government expects the economy to grow 9.0% in 2011 and 7.0% in 2012.