The 2018 results are in

PANAMA - In Brief 01 Mar 2019 by Marco Fernandez

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Economic ActivityAccording to the figures published today by the Comptroller General, real GDP grew 3.7% during 2018. Our estimate was 3.8% for the year. The Ministry of Economy and Finance (MEF) and some international organizations estimated growth at 4.2%. This result confirms the slowdown that was suggested by the economic indicators throughout the year.Leading SectorsThe leading sectors of the economy in 2018 were transportation and communications, private health and social services and private education services.Transport and communications grew 7.3% due to the dynamism presented in the operations of the Panama Canal that are still experiencing the effects of the expansion (revenues from tolls increased 8.5%). This sector also saw an increase in passenger flows and container movement (TEU), as well as heightened demand for mobile telephony, internet and cable TV services.Social services and private health grew 6.5% due to increased activity in hospitals and activities related to human health.Private education services grew 4.8% as a result of more activity in high schools and universities.Financial intermediation grew 5.0%, mostly explained by the performance of the International Banking Center and the further expansion of domestic credit, mainly in the categories of consumer credit and commerce.Construction activity showed its lowest growth rate in the last decade (3.2%). This result is explained in large part by the labor strike during Q2.The sectors that had the worst performance were fishing (-3.2%) and hotels and restaurants (-3.8%).Graph 1. Real GDP growth by economic activity: 2019Graph 2Real GDP growth and GDP contribution by sector: 2019Source: Comptrolle...