NEWS FLASH: Panama’s Office of the Comptroller General has just reported a GDP increase of 6.2% during Q1 2017, compared to Q1 2016 as construction sector leads the way towards future explosive growth.
Q1 2017 GDP totalled $9.51 Billion USD. Results indicate higher GDP growth compared to Q1 2016 (5.1%). This also indicates only a slight slippage from the Q4 2016 results of $9.88 Billion USD, following the trend from previous years. This sets Panama on a positive track to beat the 5.8% growth forecasted for 2017
The largest sector is construction, representing 17% of Panama’s GD. It experienced a 6.6% growth compared to Q1 2016.
This is no coincidence. You can’t help but notice the overwhelming number of cranes and other heavy machinery present throughout the dozens of construction sites across the city. To lend weight to the booming construction economy, the office of the Comptroller General reported on May 30th an increase of 19% in the value of construction permits for January through April 2017, compared to the same period in 2016.
Chiriqui is certainly not missing out in the development and construction boom. David alone saw a total of $37.0 Million USD worth of construction permits in this period.
The Commercial sector is the second largest, representing 16.5% of GDP. It experienced 9.5% growth compared to Q1 2016. This is attributed to increasing exports from the Colon Free Zone.
The Transport, Storage, and Communications is the third largest. It represents 15% of GDP, and experienced a 10.4% growth in Q1 2017. This includes new revenues from the Panama Canal and increasing activities in Telecommunications.
During Q1 2017, the banking sector saw gains of 3.6% from $7.13 Billion USD to $7.39 Billion USD. Real estate services sector saw gains of 2.5%, from $7.24 Billion USD to $7.42 Billion USD.
Some of the struggling sectors include Agriculture, Cattle raising, Hunting, and Forestry (-1%); and Fishing (-8%).
Panama Economic Outlook: Opportunity for investors
Panama has weathered the storm with regard to the negative perception attributed to Panama regarding the Panama Papers as the economy moves full steam toward exceeding the forecasted growth
This opens plenty of opportunities for investors who want to diversity their portfolio to include Panama real estate. Whether commercial or residential, PanamaKeys is here to help you consider the options and walk with you along the way.
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