IDB estimates growth in the Panamanian economy of 5% after registering a GDP of 10% in 2022

The economy of Latin America and the Caribbean will hardly grow 1% this year according to estimates by the Inter-American Development Bank (IDB), which described a panorama full of international challenges with the aftermath of Russia's invasion of Ukraine, inflationary pressures and what that concern has been added about the crisis of confidence in the US financial system.

Eric Parrado, IDB Chief Economist, presented the report Paving the Macroeconomic Ground for Renewed Growth, detailing that the baseline scenario for the region calls for gross domestic product to grow 1% this year after having achieved better-than-average growth. the expected in 2022 of 3.9%. And by 2024 the estimate is that growth will barely reach 1.9%, this if the United States avoids a recession this year and that there will be a global trend towards a slowdown in inflation.

The IDB chief economist clarified that the estimated growth for 2023 of 1% is under a moderate baseline scenario, but if there are other more severe impacts, such as contagion from the crisis of confidence that is occurring in the United States and other factors such as real shocks. and financial, the estimate is that GDP is zero, that is, growth is not generated.

   “Zero growth if the whole trust issue spreads to the whole world and has a more negative impact on the region,” he said of a hypothetical scenario.

Panama maintains growth

The Panamanian economy grew in 2022 at a rate of 10.8%. In value at constant 2018 prices, it means that the GDP reached the amount of $73,449.3 million, which is equivalent to an additional $7,164.9 million compared to 2021.

The activities that registered growth were manufacturing, electricity, construction, commercial, real estate and business activities, and other personal services.

The Minister of Economy and Finance, Héctor Alexander, said at the end of the Board of Governors that the growth estimate for this year remains at 5%. Although this indicator is positive, it represents a deceleration with respect to the 10.8% reported for GDP in 2022, but it is still one of the highest rates in the region.

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