Panama’s economy displayed robust growth in 2023, with its Gross Domestic Product (GDP) increasing by 7.3% from the previous year, reaching a substantial $78.823 billion, as the National Institute of Statistics and Census (INEC) reported.
This growth was benchmarked against 2018 constant prices. The construction sector was a major growth driver, soaring by 36.7%, and the wholesale and retail trade sector expanded by 7.3% due to heightened fuel sales.
Additionally, the concrete production sector saw a 17.7% rise, and alcoholic beverages grew by 2.4%.
In contrast, sectors such as hydropower generation and cattle slaughter experienced downturns, declining by 23.0% and 4.0%, respectively.
In nominal terms, the nation’s GDP surged to $83.382 billion, marking a 9% increase from the year prior, which equates to a $6.859 billion enhancement.
The report also highlighted significant activities in international commerce, including increases in re-exports from the Colon Free Zone and passenger air transport through Tocumen International Airport.
The Panama Canal’s operations and banana and fish exports contributed positively. Nonetheless, the country saw a reduction in copper mineral exports and port operations.
This comprehensive growth and the specific sectoral performances underline Panama’s economic resilience and the diverse drivers behind its GDP increase, signaling a significant leap toward sustainable economic advancement.
Background
Panama’s strategic position has long enhanced its role in global trade, notably through the Panama Canal, boosting its economy by branching into sectors like finance, tourism, and services.
This diversification contributed to a GDP surge to $83.382 billion.
Significant growth in construction by 36.7% in 2023 underscores ongoing infrastructure investment, enhancing Panama’s appeal and logistical capabilities.
The growth in trade sectors reflects heightened domestic consumption and global trade’s impact.
Conversely, challenges in hydropower and cattle sectors reveal environmental and market susceptibilities.