Local Covid-19 Outbreak, Global Downturn Will Suppress Near-Term Panamanian Growth
- It is expected that the Covid-19 (coronavirus) outbreak will significantly stunt real GDP growth in Panama in the coming quarters as the government implements restrictions on mobility and commercial activity.
- Meanwhile, a drop in global growth will further limit Panamanian exports given the economy's reliance on the Panama Canal and other service sector exports.
- Fitch has significantly revised its 2020 Panama real GDP growth to 1.8% y-o-y, from 3.9% previously, as restricted domestic production and meagre global growth hinder economic activity. In 2019, growth was 3.4%.