PANAMANIAN CONSTRUCTION EXPECTS TO GROW UP TO 12%

The projections of the Panamanian construction sector for this year are favorable, with growth prospects of between 10 and 12%, a figure higher than that of the countries of the region, which are between 5 and 7%, according to the Panamanian Chamber of Construction (Capac).

It is projected that by 2023 the sector will reach the levels it had before the pandemic, when in 2018 its participation in the Gross Domestic Product (GDP) was 24.6%.

The construction sector has been boosted by government action, which is investing over $US 7 billion in public works.

However, as the months go by, the government owes them more than US$300 million, even though this November it is finalizing a payment owed for an approximate amount.

Panama continues to have a sector with potential and capacity to continue growing and supporting the generation of quality jobs, which is experiencing a drop of 15,000 workers.

In this regard, despite the increase in occupied positions that are currently reflected, the number of workers currently working in the industry is lower than the number occupied before the pandemic. To achieve greater dynamism in the construction sector, higher levels of investment, both public and private, are required.

Within the percentage composition of the GDP of the construction sector, it is observed that the contribution went from 8.7% in 2020 to 10% in 2021, but still below 2019 levels, that is, prior to the pandemic.

The behavior of the construction industry is cyclical. To make its recovery sustainable, actions must be implemented, and others resumed to encourage private investment which, together with greater investment in public infrastructure, as other countries are doing, is key to generating more labor."

Statistical data on the cost of construction, additions, and repairs reflect that a varied behavior was observed during 2021, reflecting the importance of public-private partnerships to boost the sector.

The cost of construction, additions, and repairs from January to September of this year totaled $US 654 million, while for the years prior to the pandemic, that is, 2019, it was $US 884.4 million and $US 993.3 million. million in 2018.

Between January and September 2022, the cost of construction, additions, and repairs grew 21.6%, which reflects an improvement, compared to the accumulated figure of the previous year.

Construction, wholesale and retail trade, logistics, hotels and restaurants are considered key activities for the national economic recovery, without neglecting the joint work between the public and private sectors.

Source:

https://www.bloomberglinea.com/2022/11/18/construccion-panamena-comienza-a-bloquear-malos-resultados-espera-crecer-hasta-un-12/?fbclid=PAAaYjjDs3Jom1v3RWSbyC6upew-H6RLVKKJEZsHBUKh63atgvyFHF-N5Z_nE