In a little over 30 years, Panama has reached a growth rate admired by the whole world. In the last decade alone, the economy has grown more than double the rest of the region, presenting itself as a leader in 2019, for the first time, in the GDP ranking per capita in Latin America.
When we analyze economic reports from different Central American countries, a highly relevant fact is that Panama is one of the economies with the highest dynamism and growth.
The World Bank revealed that amongst its estimations for the end of 2019, the Panamanian economy will have a 4.5% growth while they expect that for 2020 and 2021 the expansion rate will be of 4.6%.
If the World Bank’s estimates are true, then the national economy will have an upturn of 3.7% since 2018. Another indicator, which is Gross Domestic Product, grew 3%, which means that another upturn will be expected.
In the region
By the end of 2019, everything points towards the fact that Panama would only be surpassed by Dominica, who presents a rate of 9.6% and by Dominican Republic with a 5.3%. When analyzing the rates for other nations in Central America, we can find Nicaragua with a drop of 5% in its economy.
Other countries such as Honduras, have a growth rate of 3.3%, while Costa Rica counts with 2% growth.
Another interesting fact that compares Panama to other regional economies is that Brazil will grow just 0.9%, Mexico 0.6% and Argentina will decrease by 3.1%.
In general, the region composed of Latina America and the Caribbean will have an overall growth of 0.8% in 2019, however it is expected that in 2020 this will increase to 1.8%.
Panama: a growing economy
According to the World Bank’s report found in their webpage, Panama has been one of the fastest growing economies in the last decade. In the last five years, the average annual growth rate has been 5.0%.
Panamanian economy is based largely on the traffic through the Panama Canal and its investments in infrastructure. Another determinant factor in this growth is the new mining of copper.
Furthermore, the report reveals that the index of poverty has decreased significantly in the country: between 2015 and 2018 poverty went from 15.4% to 13.8% while extreme poverty went from 6.7% to 6.2%.
The organization concluded its report by stating that Panama is in the perfect position to proceed with the developmental objectives presented by the institution, as well as it is also on its way to extinguish extreme poverty, attributed to its own growth and governmental involvement.
In conclusion, the country has all the stamina to continue this path towards growth while exploiting the potential that Panama offers in every sense of the word.
This information was developed by Panama Living, a digital platform committed to collecting, researching, and disseminating all the necessary information to turn your interest in Panama into a pleasant and enriching experience.
