Panama’s economic activity grows 6.49%

Panama’s monthly index of economic activity (Imae) grew by 6.49% in the first five months of the year (2017), when compared to the same period of the previous year (2016).

The figure, which reflects an acceleration of economic activity, is used as an indicator of the production of the country, while the gross domestic product measures the value added, ie the value of sales of goods and services of the country in a certain period of time.

According to the Comptroller General of the Republic, the categories of economic activity that showed a better performance were: construction, mining and quarrying; Transportation, storage and communications; And electricity and water, among others.

The rest of the categories showed a favorable result, but at a lower rate, with the exception of fishing, the agricultural sector and health, which registered a decrease.

Commercial activity increased, according to the Comptroller, by the demand of the local wholesale trade and the Colon Free Zone.

Transportation and communications services benefited from the Panama Canal, which this year has a new set of locks and the movement of containers measured through the port system.

Similarly, telecommunications and international passenger transport by air performed better.

The construction and exploitation of mines and quarries grew by works of the public sector such as the urban renewal in Colón, the resumption of health sector projects, Metro line 2, the third bridge over the Canal, and the expansion of the road network from the country.

The activities which suffered in Panama included fishing, which had a worse performance due to lower catch of export oriented species.

The agricultural sector also registered setbacks in the area of breeding cattle, along with the cultivation of export fruits like watermelon, melon, pineapple, and banana.