Panama’s Economy Grew 2.2% in the First Half of 2024

• Panama’s economy continues to grow, although slower than in previous years. At the end of the first half of 2024 (H1 2024), the country’s gross domestic product (GDP) grew by 2.2%, according to the latest data from the National Institute of Statistics and Census (INEC). For H1 2024, GDP totalled $38.7Bn, representing an $814.3Mn increase compared to H1 2023.
• Notably, during the second quarter of 2024 (Q2 2024), real GDP increased by 2.5%, reaching $18.25Bn. This growth represented a $444.0Mn increase in Q2 2023 and was attributed mainly to growth in Construction, Land Transport, Wholesale and Retail, Finance and Tourism.
• Investment in public infrastructure projects was one of the main growth drivers in the construction sector, while the increase in passengers on the Panama Metro by 7.9% and the increase in traffic on road corridors by 6.1% contributed significantly to Land Transport.
• The wholesale and retail sector saw a 6.4% rise, especially in food and automobile sales, according to official figures. Growth in Finance was led by a 7.0% increase in Loan balances, highlighting confidence in the financial system.  Meanwhile, increases in the Tourism sector were supported by 13.2% growth seen among hotels.
• That said, not all sectors experienced growth. There were declines in sectors such as Panama Canal toll revenues (11.7%), and in the activities of the Colon Free Trade Zone (12.5%). Mining and quarrying operations were also affected by the closure of a major copper mine.

(Source: Newsroom Panama)