Panama’s economy advanced 4.0 percent year-on-year in the fourth quarter of 2018, following a 3.6 percent expansion in the previous period. Faster growth was mainly driven by financial services (5.6 percent from 3.6 percent in Q3); education (6.1 percent from 4.6 percent); social services & private health (9.4 percent from 5.9 percent); construction (6.5 percent from 2.0 percent); utilities (2.3 percent from 1.2 percent) and mining (6.5 percent from 2.0 percent). On the other hand, output growth slowed in trade (1.8 percent from 5.7 percent); transport & communications (5.7 percent from 9.6 percent); and agriculture (0.4 percent from 2.2 percent). Also, manufacturing production shrank (-0.9 percent from 1.5 percent) and fishing contracted further (-27.4 percent from -11.7 percent). Considering full 2018, the economy grew 3.7 percent easing from a 5.3 percent expansion in 2017. GDP Annual Growth Rate in Panama averaged 7.23 percent from 2010 until 2018, reaching an all time high of 12.20 percent in the second quarter of 2011 and a record low of 3.10 percent in the second quarter of 2018.
GDP Annual Growth Rate in Panama is expected to be 3.60 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 4.70 in 12 months time. In the long-term, the Panama GDP Annual Growth Rate is projected to trend around 5.00 percent in 2020, according to our econometric models.