Panama: Economic growth remains strong in Q4
March 1, 2012
In the fourth quarter, the economy expanded 9.6% over the same quarter the year before, which was down from the revised 11.2% rise registered in the third quarter (previously reported: 10.4% year-on-year). The deceleration over the previous period reflected slower growth in services (Q3:+14.1% yoy; Q4: +11.4% yoy), which are the largest component of Panama's economy. In particular, commerce decelerated from a 22.3% expansion in the third quarter to a 16.4% increase in the fourth. Construction, moreover, slowed down even more sharply, from 23.8% annual growth in the third quarter to 14.3%. On the other hand, both agriculture (Q3: -0.9% yoy; Q4: +2.5%) and industry (Q3: +6.4%; Q4: +7.9% yoy) accelerated compared with the previous quarter. For the full year 2011, the economy expanded 10.6%, well above the 7.6% expansion recorded in 2010. The government expects the economy to grow 7.0% in 2012.