Once the economy begins to return to normal, as isolation and mobility restrictions are relaxed, household consumption patterns will have changed significantly.

Using a demand/income sensitivity model developed by the Trade Intelligence Unit of CentralAmericaData, it is possible to project the variations in Panamanian household demand for different goods and services as the most critical phases in the spread of covid-19 are overcome and the measures restricting mobility in the country are lifted.

For this analysis, it is assumed that the quarantine and mobility restriction measures will be extended for three months.

For example, the demand for meals outside the home will decrease by about 19% from the levels reported prior to the crisis. When the expected demand for meat, specifically beef, is analyzed, it is estimated that once the quarantine period is over, households in Panama will reduce their expenditures on this item by about 4%.

When commercial activity begins to normalize, it is estimated that demand for men’s sports shoes will contract by 3%, compared with sales levels prior to the Covid-19 crisis.

In the case of the automotive market, demand for motor vehicles is expected to fall by about 40%.

The “Information System: Covid-19 and Business Outlook“, is helping our clients understand and dimension the impact that the crisis will have on the demand for goods and services of companies in all sectors, with details such as the financial strength of clients and suppliers of each economic activity, which allows us to forecast which of them could face more difficulties in the coming months.