In 2016 the GDP of the industrial sector shrank by almost 3%, affected by a 12% drop in sugar production and 11% in beverage production.

In the last two years, the contribution of the industrial sector to the economy has shrunk by $80 million, according to estimates made by entrepreneurs who are members of the Union of Industrialists of Panama. In 2016 alone the sector’s GDP fell by 2.8%, and this year the outlook is not very encouraging.

See also: “Food Industry Imports in Central America“

According to industrialists there is a need for “Panama to have a real productive development policy, in order to boost productivity, competitiveness and overall development of the activities of the industrial and agro-industrial sector and the economic efficiency of the production chain, in the short, medium and long term, that allows Panamanian exports to recover.”

Laestrella.com.pa reports that “…”According to representatives of the industrialists, the contraction of economic activity in 2016 was mainly due to a decrease in the manufacture of food and beverages. According to figures released in 2016 sugar production decreased by 11.9%, production of beverages fell by 10.7%  and cement production decreased by 5.1%. In 2016, the production of ready-mix concrete (-12.8%) and chemicals (-11.1%) also deteriorated, added representatives from the business association.”