This year, the economy is expected to grow 3.8% and in 2019 the increase could reach 5%, which would be determined by the activities of the Canal, transportation, mining and telecommunications.

The Indesa firm forecasts that next year Panama‘s economy will increase its dynamism compared to 2018, since the activities related to the external part will register good performance.

Felipe Chapman, a partner of the firm, said to Prensa.com that “… dynamism is concentrated in sectors that are linked to the external sector, while the activities that the citizen perceives most, such as consumption, are going to have a more moderate behavior. Private consumption will only grow 0.6% in 2018 and 1.2% in 2019, rates lower than the 4.1% recorded in 2016.”

Chapman added that “… Among the factors that may have a positive impact on growth forecasts are a greater impact than expected by the World Youth Day, the greater recovery of construction activity and the increase in tourism activity because of the expansion of Tocumen and the beginning of operations of the Amador Convention Center.”

According to the specialist, the risks that could push down the forecasts are “… a faster increase in interest rates by the U.S. Federal Reserve, which could slow private consumption, the trade conflict between the U.S. and China, that could affect the logistical activity of Panama and a greater dollar appreciation, which would reduce competitiveness of Panamanian exports.”