Panama’s economy advanced 2.9 percent year-on-year in the second quarter of 2019, easing from a 3.1 percent expansion in the previous period. It was the weakest growth rate since at least 2010, amid a slowdown in construction (2.9 percent from 4.5 percent in Q1); financial services (3.9 percent from 4.7 percent); restaurants & hotels (1.4 percent from 2 percent); and utilities (2.1 percent from 5.6 percent). Additionally, manufacturing activity shrank further (-1 percent from -0.9 percent). On the other hand, output rose at a faster pace in transport & communications (5.2 percent from 4.3 percent); trade (2 percent from 1.9 percent); social services & private health (3.1 percent from 2.7 percent); education (4.5 percent from 0.9 percent); mining (4.7 percent from 4.5 percent); agriculture (8.4 percent from 2.4 percent); and real estate (3.3 percent from 2.8 percent). Also, fishing activities contracted less (-32.5 percent from -39.9 percent). GDP Annual Growth Rate in Panama averaged 6.82 percent from 2010 until 2019, reaching an all time high of 12.20 percent in the second quarter of 2011 and a record low of 2.90 percent in the second quarter of 2019.
GDP Annual Growth Rate in Panama is expected to be 4.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Panama to stand at 5.00 in 12 months time. In the long-term, the Panama GDP Annual Growth Rate is projected to trend around 5.20 percent in 2020, according to our econometric models.