Panama: GDP growth slows pace in Q2 2015
September 16, 2015
The Panamanian economy expanded 5.8% in Q2 over the same quarter of the previous year. The result came in slightly below the 6.1% growth registered in Q1. The moderation shows that slowdowns in activity related to the Panama Canal expansion project, and decelerations in other sectors of the economy, eased the pace of growth in Panama. The canal project is more than 90% complete and moving into a testing phase. The upgraded canal is scheduled to be open to traffic by April 2016.
The expansion in Q2 was driven by growth particularly in the industrial sector, which expanded 6.3% (Q1 2015: +10.8% year-on-year) and was driven by gains in activity related to electrical, gas and water production. Panama’s important services sector expanded 4.8% (Q1 2015: +6.9% yoy) on the back of strong gains in financial services as well as in health and social services. In contrast, the agricultural sector witnessed a contraction of 1.1%, marking a deterioration over Q1’s 0.4% decline.
Author: Robert Hill, Economist