Panama’s economy is poised for dramatic rebound

Significance

Mining and quarrying activities (728%), construction (489%), hotels and restaurants (92%), transport and communications (29.8%) and trade (23.9%) were the main drivers of growth, boosted by an easing of mobility restrictions and stronger global trade flows.

Impacts

• The 'Pandora Papers' investigation will cast further doubt on Panama’s anti-money laundering efforts.
• Large social and economic disparity between the Panama Canal area and the rest of the country will continue to hinder development.
• The Darien Gap is increasingly becoming a migration bottleneck which will necessitate international cooperation, especially with Colombia.
• Service activities related to the expansion of the Panama Canal will support growth in the coming years.
• Higher import demand boosted by economic recovery will weigh on external accounts this year.