Panama: Economy slows in June
August 24, 2011
In June, the economy expanded 5.1% over the same month last year (May: +9.5% year-on-year), according to the monthly indicator of economic activity (IMAE, indice Mensual de Actividad Economica). Sectors that had the biggest impact on the monthly reading were transportation, storage and communications, as well as construction. On a monthly basis, economic activity increased 0.16% over the previous month in seasonally adjusted terms, contrasting May's 0.28% decline (previously reported: +0.43% mom). Annual average growth in economic activity edged down from 7.1% in May to 6.9% in June. Based on monthly figures, the economy expanded 6.7% in the second quarter, which is down from the 7.7% expansion tallied in the first quarter. National accounts data for the second quarter of the year will be released on 15 September. Going forward, economic growth should remain strong, propelled by ongoing investment in a project that aims to double the Panama Canal's capacity by 2014.