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Real Estate Market: Ambitious Projections for 2018

This year in Panama realtors expect to sell 9,000 homes and generate $1.146 billion, which would be a 34% increase compared to the value sold last year.

Thursday, April 12, 2018

The National Council of Housing Promoters (Convivienda) plans to sell 8,958 units of housing nationwide this year, after having sold 7,219 units last year.

See also "Central America: $4 billion for Residential Projects"

Regarding the units sold in 2017, 78% corresponded to preferential interest homes, valued up to $120 thousand, 19% corresponded to homes with prices of $120 thousand to $350 thousand, and 3% to units with prices over $350 thousand.

Last year, most of the homes sold corresponded to those located in the price range from $65 thousand to $80 thousand, followed by units whose prices range between $95 thousand and $120 thousand.

Laestrella.com.pa reports that "... During the presentation of the results for the year 2017 and projections for this year, Elisa Suárez de Gómez, executive director of Convivienda, insisted that 'it is unsustainable' to build in the price range between $40 thousand and $65 thousand, 'it is impossible to obtain cost effectiveness'."

See full report by Convivienda: "Results 2017 and projections 2018" (In Spanish).
 

https://www.centralamericadata.com/en/article/main/Real_Estate_Market_Ambitious_Projections_for_2018

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Panama: Economic Activity Up 3%

Trade and manufacturing are the sectors that contributed the most to the year-on-year variation of 3.1% registered during the second month of the year in the economic activity index.

Wednesday, April 18, 2018

From a report compiled by the General Comptroller of the Republic:

The Monthly Index of Economic Activity (IMAE) in the Republic, for the period January-February 2018, grew by 3.85%, compared to the same period in 2017. The inter - annual monthly variation of February 2018, compared to the same month in 2017, was 3.10%. 

The main categories of economic activity that presented a favorable performance were: trade, transport, storage and communications (includes canal, ports and aviation), manufacturing industries, public administration, construction, electricity and water, and fishing.  

Commercial activity, one of the most important categories in the economy, was driven by demand from local commerce; and the Colon Free Zone. Transport and communications services showed favorable behavior, due to the net tons of the Panama Canal, and telecommunications.  

The category of manufacturing industries registered positive results in activities such as the manufacture of alcoholic beverages and the elaboration of food products.

See full report (in Spanish).

 

https://www.centralamericadata.com/en/article/main/Panama_Economic_Activity_Up_3

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Panama as Seen by the IMF, June 2018

Due to the recent strike in the construction sector, the entity has reduced projections of economic growth for this year from 5.6% to 4.6%.

Friday, June 1, 2018

However, recovery from the impact of the strike and the entry into operation of a large copper mine will lead to an upward revision of around one percentage point in the growth projection of 5.8% for 2019.

From a statement issued by the IMF:

June 1 2018. A staff team of the International Monetary Fund (IMF), led by Alejandro Santos, visited Panama during May 21-June 1, 2018. At the conclusion of the visit, Mr. Santos issued the following statement:

“The economy of Panama remains among the most dynamic and stable in Latin America despite the recent prolonged strike in the construction sector and the relative weakening of economic activity in the first quarter which will lead to a downward revision of our growth projection of 5.6 percent for 2018 (by about 1 percentage point). At the same time, the recovery from the impact of the strike and the coming on stream of a large copper mine will lead to an upward revision of our growth projection of 5.8 percent in 2019 (by about 1 percentage point). Over the medium-term, the economy will gradually converge to its potential growth of 5.5 percent. Inflation will remain low and is expected to pick up to about 2 percent in 2018 mainly due to higher fuel prices.

“The external position is expected to improve significantly next year with the completion of the import-intensive mining project, the start of copper exports, and external service receipts related to higher traffic in the Panama Canal. The outlook is subject to downside risks mostly related to external factors, including lower international maritime traffic due to trade disputes, and a faster-than-expected tightening of U.S. monetary policy, while a stronger global growth would be an upside risk and a boost to activity.

“Fiscal policy is projected to remain guided by the deficit limit under the fiscal responsibility law (which we estimate to be about 1.5 percent of GDP given the expected contributions from the Panama Canal Authority of some 2.5 percent of GDP). Efforts will be required to curb the growth of current expenditures to provide additional room for needed strategic public investment. The authorities’ initiative to establish a fiscal council will further strengthen the fiscal framework.

“The banking system remains solid, well capitalized, liquid and profitable, with low non-performing loans, and the authorities continue to advance their agenda for improving bank regulations and supervision (including the implementation of Basel III). Given the need to continue strengthening the financial system, it will be important to take further measures related to financial integrity and tax transparency. In particular, the mission supports to have legislation approved related to the criminalization of tax evasion, which would bring Panama closer to international standards on Anti-Money Laundering/Countering the Financing of Terrorism, and tax transparency, thus helping to strengthen Panama’s position as a regional financial center.

 

https://www.centralamericadata.com/en/article/main/Panama_as_Seen_by_the_IMF_June_2018

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Public-private partnership is proposed to boost economic growth

Sun, 06/03/2018 - 19:40

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The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) today called for specific public-private partnerships in the logistics and production sectors to boost competitiveness and economic growth in
the country.

The CCIAP, which groups more than 1,600 companies, said so after President Juan Varela called for more efforts on Saturday to attract private investment, in response to the IMF announcement of a one percentage point drop in the growth projection of Panama this 2018, initially calculated at 5.6 percent.

To "face the economic challenges," the employers "reiterate the convenience of establishing a Public-Private Partnership (APP) to accelerate the Multimodal Project of the Tocumen International Airport and attract direct investors."

Also to "promote the progress of the Interoceanic Zone of the Panama Canal, which would attract investors in pilot projects in sectors of progress".

The CCIAP also called for "the activation of groups of industrial, logistics and free zone entrepreneurs, to increase the benefits of the Tocumen air terminal, the creation of a public-private entity that promotes exports and, in this framework, achieve the implementation of the Field Acceleration Program".

It reiterated the need for "a strategic tourism plan that produces a multiplier effect in the Panamanian economy, transcending administrations by establishing itself as a State policy and taking advantage of the already established 'Hub of the Americas' and potential sector to attract tourism and trade fairs , congresses and
conventions".

The employers also urged businesspeople of the country to take advantage of the situation "to affirm or efocus, if this is the case, their productive efforts, with the purpose of strengthening the private sector in its function as a generator of work and prosperity".

As Panamanian companies strengthen their respective strengths, Panama will increase its international levels of competitiveness, a determining factor for the arrival of investments, including multiple advantages and benefits for the entire country, said the CCIAP.

The dean of the Faculty of Economics of the state University of Panama, Rolando Gordón, told Acan-Efe that the strength of the dollar, the current currency in Panama, the fuel increase and the construction strike are among the factors that caused the reduction of a percentage point in the growth perspective for the country for this 2018 of the International Monetary Fund (IMF).

 

http://www.panamatoday.com/economy/public-private-partnership-proposed-boost-economic-growth-6982

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IMF will revise downwards Panama's 5.6% growth forecast for 2018

Sun, 06/03/2018 - 14:45

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The International Monetary Fund (IMF) announced that it will revise downwards the growth of 5.6 percent of GDP projected for Panama this year, due to the impact of a strike in the neuralgic construction sector and the weakening of activity economic in the first quarter.

"Panama's economy remains among the most dynamic and stable in Latin America despite the recent and prolonged strike held in the construction sector and the relative weakening of economic activity in the first quarter, which will lead to a downward revision of our growth projection of 5.6 percent (by about one percentage point)," the IMF said.

At the same time, the IMF said in a statement released by the Ministry of Economy and Finance, "the recovery of the impact of the strike and the entry into operation of a large copper mine will lead to an upward revision in our growth projection of 5.8 percent by 2019 (by about one percentage point)."

According to the available official data, the monthly economic activity index (IMAE), an economic indicator that allows to approximate the economic growth path of the country, expanded by 3.4 percent in the first quarter of this year, the lowest in recent years.

May 18 marked the end of a strike for wage claims in the construction sector of Panama, which in 2016 accounted for 14.9 percent of gross domestic product (GDP), which lasted a month and generated millions in losses according to businesspeople.

The IMF said on Wednesday, at the end of a visit that began on May 21 that in the medium term the economy of Panama "will converge gradually to its potential growth of 5 percent."

"Inflation will remain low and could reach 2 percent in 2018, mainly because of an increase in the price of fuel," the IMF said.

It added that "next year the external position is expected to show a significant improvement with the completion of the mining project, which required large imports, the start of copper exports, and the revenues from external services linked to increased traffic in the Panama Canal".

"This outlook is subject to negative risks linked mainly to external factors, including lower international maritime traffic caused by potential commercial disputes, and a more rapid than expected tightening of monetary policy in the United States," said the IMF.

The IMF added, "a stronger global growth would represent a positive risk and a boost to the economic activity of Panama.

Panama's economy grew 5.4 percent of GDP in 2017, over 5 percent of the previous year, boosted by activities related to the external sector such as the interoceanic canal and air and financial services.

 

http://www.panamatoday.com/economy/imf-will-revise-downwards-panamas-56-growth-forecast-2018-6981

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IMF Staff Concludes Visit to Panama

June 1, 2018

A staff team of the International Monetary Fund (IMF), led by Alejandro Santos, visited Panama during May 21-June 1, 2018. At the conclusion of the visit, Mr. Santos issued the following statement:

“The economy of Panama remains among the most dynamic and stable in Latin America despite the recent prolonged strike in the construction sector and the relative weakening of economic activity in the first quarter which will lead to a downward revision of our growth projection of 5.6 percent for 2018 (by about 1 percentage point). At the same time, the recovery from the impact of the strike and the coming on stream of a large copper mine will lead to an upward revision of our growth projection of 5.8 percent in 2019 (by about 1 percentage point). Over the medium-term, the economy will gradually converge to its potential growth of 5.5 percent. Inflation will remain low and is expected to pick up to about 2 percent in 2018 mainly due to higher fuel prices.

“The external position is expected to improve significantly next year with the completion of the import-intensive mining project, the start of copper exports, and external service receipts related to higher traffic in the Panama Canal. The outlook is subject to downside risks mostly related to external factors, including lower international maritime traffic due to trade disputes, and a faster-than-expected tightening of U.S. monetary policy, while a stronger global growth would be an upside risk and a boost to activity.

“Fiscal policy is projected to remain guided by the deficit limit under the fiscal responsibility law (which we estimate to be about 1.5 percent of GDP given the expected contributions from the Panama Canal Authority of some 2.5 percent of GDP). Efforts will be required to curb the growth of current expenditures to provide additional room for needed strategic public investment. The authorities’ initiative to establish a fiscal council will further strengthen the fiscal framework.

“The banking system remains solid, well capitalized, liquid and profitable, with low non-performing loans, and the authorities continue to advance their agenda for improving bank regulations and supervision (including the implementation of Basel III). Given the need to continue strengthening the financial system, it will be important to take further measures related to financial integrity and tax transparency. In particular, the mission supports to have legislation approved related to the criminalization of tax evasion, which would bring Panama closer to international standards on Anti-Money Laundering/Countering the Financing of Terrorism, and tax transparency, thus helping to strengthen Panama’s position as a regional financial center.”

The mission is grateful to the authorities for their kind hospitality, excellent cooperation and open discussions.

 

http://www.imf.org/en/News/Articles/2018/06/01/pr18210-imf-staff-concludes-visit-to-panama

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Plan to Issue Bonds in China

The Panamanian issue of $500 million in "Panda" debt securities could be made in the course of the second half of the year, in the Chinese capital market.

Monday, June 11, 2018

With this issue, the Panamanian government plans to take advantage of the most favorable financing conditions offered by the Chinese securities market, compared to the local market and even other developed markets. 

Prensa.com reports that "... Panama already has outstanding debt in yen, known as samurai bonds, which mature in 2021. It also analyzed issuing debt in Swiss francs and euros, but eventually decided not to do so."

"... The Bank of China is analyzing the possibility of expanding operations in Panama, through a regional headquarters, taking advantage of the platform offered by the isthmus for commercial exchange between Asia and Latin America."


 

https://www.centralamericadata.com/en/article/main/Plan_Resumed_to_Issue_Bonds_in_China

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Panama: Labor Market Figures Improve

After the 3% decrease reported in the number of work contracts between the first quarter of 2017 and the same period this year, data accumulated up to April registered a 2% increase.

Thursday, June 14, 2018

The Office of the Comptroller General of the Republic reported that between the first four months of 2017 and the same period this year, labor contracts registered at the national level grew by 1.6%, from 145,077 to 147,435. 

Labor contracts for fixed terms and for specific projects registered in the Headquarters of the Mitradel reported a decrease for the periods in question, descending from 38,930 and 38,303 to 31,129 and 27,022 respectively. 

For the periods in question, the total number of contracts registered at the Headquarters decreased by 3%, and those reported by the Regional Headquarters increased by 11%. 
 
See complete figures. (In Spanish)

 

https://www.centralamericadata.com/en/article/main/Panama_Labor_Market_Figures_Improve

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Inflation rate accumulates 0.6 percent between January and May in Panama

Mon, 06/18/2018 - 20:17

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The inflation rate in Panama did not change in May compared to the previous month, so there is an accumulation of 0.6 percent in the first five months, according to the National Institute of Statistics and Census (INEC).

The statistical entity indicated that the Consumer Price Index (CPI) reflected an interannual variation of 0.8%.

The groups that showed increases in the CPI in May compared to last April were restaurants and hotels with 0.5 percent; transport with 0.4 percent; alcoholic beverages and tobacco, and housing, water, electricity and gas with 0.2 percent.

Recreation and culture; education and goods, and diverse services remained unchanged, while garment and footwear groups registered negative variations (-0.5 percent); furniture, household and household maintenance items (-0.3 percent); food and non-alcoholic beverages, health and communications with -0.2 percent.

The inflation rate in Panama closed 2017 with an accumulated 0.9 percent, according to official data. EFE

 

http://www.panamatoday.com/panama/inflation-rate-accumulates-06-percent-between-january-and-may-panama-7108

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Panama: Economic Activity Slows Down

After registering average increases of almost 4% in the first four months of the year, during May the IMAE reported a weak increase of 0.76% compared to the same month in 2017.

Thursday, July 19, 2018

From a statement issued by the General Comptroller of the Republic:

The Monthly Index of Economic Activity (IMAE) in the Republic, for January-May 2018, grew by 3.17%, compared to the same period in 2017. The interannual monthly variation for May 2018 was 0.76%, compared to the same month in the previous year.  

In the period of January-May, the main categories of economic activity that showed favorable performances were: fishing, transport, storage and communications, electricity and water, public administration and commerce.

If we observe the categories by their weight we can see that commercial activity, showed a positive behavior, mainly in wholesale trade. Transportation and communications services performed well, mainly through the Panama Canal, international passenger transport by air, and telecommunications. 

See full report (In Spanish).

 

https://www.centralamericadata.com/en/article/main/Panama_Economic_Activity_Slows_Down

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Contagious Effect in Central America

Due to the crisis affecting Nicaragua and paralysis of construction in Panama between April and May, the IMF has reduced the expectation of economic growth for the Central American region from 4% to 3.3%.

Tuesday, July 24, 2018

The International Monetary Fund (IMF) cut growth forecasts for the Central American economy, due to the uncertainty caused by the situation in Nicaragua and its effect on the region's economic activity, and the impact of the construction strike in Panama, which has halted works on 260 projects nationwide for the last 30 days.

In a report on the outlook for the Latin American economy this year, the IMF said that "...In Central America and the Dominican Republic, the robust growth of the United States and the higher level of remittances linked to uncertainty about its future migration policies continue to support solid growth performance in 2018. In any case, the political uncertainty in Nicaragua and the temporary interruptions of the construction sector in Panama have weakened domestic demand, which has led to a slight downward correction of regional growth in 2018, which could be 4%."

The positive aspect of this analysis, according to the IMF report, is that the solid growth of the United States and the stability of remittances flows could help to partly counteract the impact of the Nicaraguan crisis, which could continue for several more months.

 

https://www.centralamericadata.com/en/article/main/Central_America_and_the_Contagious_Effect

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Inflation rate accumulated 0.7 percent between January and June in Panama

Sun, 07/29/2018 - 20:36

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The inflation  rate in Panama accumulated 0.7 percent between last January and June, when the interannual variation reached 1.2 percent, according to data released by the National Institute of Statistics and Census (INEC).

The statistical entity said the Consumer Price Index (CPI) reflected a variation of 0.2 percent in June compared to the previous month.

The groups that recorded increases in the CPI last June compared to May were transport with 1.2 percent; restaurants and hotels with 0.2 percent; furniture, household articles and home ordinary maintenance items with 0.1 percent, and health also with 0.1 percent.

The statistical entity said food and non-alcoholic beverages remained unchanged; alcoholic beverages and tobacco; housing, water, electricity and gas; communications; recreation and culture, including education.

The groups with negative variations were clothing and footwear, and miscellaneous goods and services, both with -0.1 percent, the Inec added.

When comparing the CPI of June 2018 with its similar figure for 2017, there were increases in transportation (5.4 percent); education (3.7 percent); restaurants and hotels (3 percent); alcoholic beverages and tobacco (1.8 percent); miscellaneous goods and services (0.9 percent); housing, water, electricity and gas (0.8 percent); health (0.7 percent), and recreation and culture (0.4 percent).

In the inter-annual period, the groups that showed declines in the CPI were food and non-alcoholic beverages (-1 percent); clothing and footwear (-0.9 percent); communications (-0.7 percent), and furniture, household items and home ordinary maintenance items (-0.1 percent).

The inflation rate in Panama closed 2017 with an accumulated 0.9 percent, according to official data.

 

http://www.panamatoday.com/economy/inflation-rate-accumulated-07-percent-between-january-and-june-panama-7436

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ECLAC projects 5.2% growth for Panama regardless construction strike

Fri, 08/24/2018 - 15:48

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Panama's gross domestic product (GDP) will grow by 5.2 percent this year and will continue to lead the region's economic growth despite the month-long strike that affected the construction sector, said today the Economic Commission for Latin America and the Caribbean (ECLAC).

"The construction, transport and communications sectors are expected to continue to lead the growth of the Panamanian economy, even though it is estimated that the month-long strike staged by construction workers will slow the growth of this sector," said Cepal.

Hundreds of projects, including mega-projects such as the second subway line of the Panamanian capital, were suspended for a month between April and May due to a strike convened by the country's main union to demand salary increases.

The International Monetary Fund (IMF) announced in June that it will reduce the growth projection of Panama 2018 by approximately one percentage point, which initially stood at 5.6 percent, due to the strike.

ECLAC today presented in Mexico the so-called Economic Survey of Latin America and the Caribbean 2018, in which it states that Panama will be the second country that grows the most in the region, only behind the Dominican Republic, which will do so by 5.4 percent.

According to the institution, South America is expected to grow by an average of 1.2 percent in 2018, while Central America would grow by 3.4 percent and the Caribbean by 1.7 percent.

The report, which the international body publishes annually since its founding in 1948, also points out that the current account deficit of Panama's balance of payments will remain "stable" or even continue to decline.

ECLAC also estimates "a slight contraction in the adjusted deficit of the non-financial public sector, due to the greater contributions of the Panama Canal as a result of a positive evolution of foreign trade."

Panama's economy grew by 5.4 percent of GDP in 2017, over 5 percent of the previous year, driven mainly by the interoceanic canal, the airline industry and financial services. EFE

The executive secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Bárcena, participates today, Thursday, August 23, 2018, during a press conference in Mexico City (Mexico), for the presentation of the Economic Study for Latin America and the Caribbean 2018 where ECLAC reduced the growth forecast for Latin America and the Caribbean this year from 2.2% to 1.5%, which represents a slight increase compared to 1.2% in 2017 thanks to domestic demand and investment, despite the persistence of "external uncertainties."

 

https://www.panamatoday.com/panama/eclac-projects-52-growth-panama-regardless-construction-strike-7670

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UN economic panel reduces growth estimates for LatAm

Fri, 08/24/2018 - 15:10

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The UN Economic Commission for Latin America and the Caribbean (ECLAC) on Thursday reduced its 2018 estimates for economic growth in the region from 2.2 percent to 1.5 percent.

"After two consecutive years of negative growth, in 2017 we had a growth rate of 1.2 percent and this year we expect it to be 1.5 percent, although there are significant differences between the subregions," ECLAC Executive Secretary Alicia Barcena said in Mexico City.

South America is expected to grow 1.2 percent in 2018, while Central America may grow 3.4 percent, and the Caribbean 1.7 percent.

The Dominican Republic and Panama are the two countries with the highest estimated growth rates for 2018, of 5.4 percent and 5.2 percent, respectively, followed by Paraguay (4.4 percent), Bolivia (4.3 percent), Antigua and Barbuda (4.2 percent), and Chile and Honduras (3.9 percent in each case).

Brazil and Mexico, the two largest economies in Latin America, are expected to grow 1.6 percent and 2.2 percent, respectively.

On the other hand, Venezuela's GDP is expected to fall by 12 percent, while Argentina's economy may shrink 0.3 percent.

According to ECLAC's Economic Survey of Latin America and the Caribbean, the modest economic growth in the region takes place in a "complex global environment," marked by trade tensions between the United States, China and other nations.

The report adds that recent geopolitical risks, a decrease in capital flows towards emerging markets in the last few months, and a depreciation of certain currencies against the dollar have also led to sluggish economic growth.

 

https://www.panamatoday.com/economy/un-economic-panel-reduces-growth-estimates-latam-7668

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Real Estate Market Deflates

In Panama City a reduction of almost 20% in the prices of residential rents has been reported, particularly in areas that five years ago registered the highest prices in the capital.

Thursday, September 6, 2018

The high supply of apartments and houses in residential areas has pushed down prices, especially in areas such as Paitilla, Balboa Avenue and Costa del Este, where in 2013 2 and 3 bedroom apartments were rented at prices above $2,000 and $3,000 a month.

Martesfinanciero.com reports that "...According to the construction guilds, prices of residential real estate have plummeted by an average of 18%. Aldo Stagnaro, president of the Panamanian Association of Brokers and Developers of Real Estate (Acobir), explained that 'There is a lot of real estate supply and that is good and ideal for investing by buying and then renting it out. The property can pay for itself from the rent'."

Eileen Chévez, market research coordinator at Cbre Panama, explains that "... the residential rental market in 2017 and the first half of 2018 was sluggish, however, in July it started to become more dynamic ...Chévez indicates that, given the oversupply, the terms of negotiation of rents are greater and tenants obtain great benefits. The main cause of the fall in prices is attributed to an excess supply of real estate."

In the medium term it does not seem that the supply of residential real estate will decrease.  As of May, the environmental impact studies that were submitted in Panama represent an estimated investment of $235 million. See "Construction: $235 million in residential projects"

 

https://www.centralamericadata.com/en/article/main/Real_Estate_Market_Deflates

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Panama: Labor Hiring Down 4%

In the first eight months of the year, the authorities registered 179,000 work contracts, 4% less than the 186,000 contracts reported in the same period in 2017.

Tuesday, September 11, 2018

According to figures from the Ministry of Labor and Labor Development between the first eight months of 2017 and the same period in 2018, the types of permanent contracts registered an increase, rising from 49,849 to 51,598.

The ministerial reports detail that fixed term contracts and contracts for specific projects registered a decrease in the periods in question, decreasing from 76,838 and 59,395 to 76,331 and 50,853 respectively. 

In relation to the proportion of temporary employment contracts, which take into account those for fixed terms and specific projects, their proportion of the total in the first eight months of the year was reduced with respect to the same period in 2017, falling from 73% to 69%.

See complete figures for the first eight months of 2017 and 2018. (In Spanish)

 

https://www.centralamericadata.com/en/article/main/Panama_Labor_Hiring_Drops_4

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The accumulated inflation rate between January and August in Panama is 0.8 percent

Sat, 09/15/2018 - 23:52

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The accumulated inflation rate between last January and August in Panama was 0.8 percent, when the inter-annual variation reached 1.1 percent, according to data released today by the National Institute of Statistics and Census (INEC).

The statistical entity indicated that the Consumer Price Index (CPI) reflected a variation of 0.1 percent in August in relation to the previous month.

The groups that showed increases in the CPI last August compared to July were food and non-alcoholic beverages with 0.3 percent; health with 0.2 percent; and with 0.1 percent the segments of alcoholic beverages and tobacco; Clothing and footwear; housing, water, electricity and gas; furniture, household appliances for the ordinary conservation of the home; and transportation.

Communication and education groups remained unchanged, while the restaurant and hotel segments registered negative 0.2%; recreation and culture, and diverse goods and services, both with - 0.1 percent. When comparing the CPI for August 2018 with its similar for 2017, the following increases were observed: transportation at 4.0 percent; education at 3.7 percent; restaurants and hotels at 2.5 percent; alcoholic beverages and tobacco at 1.4 percent, and health at 1.1 percent.

The price index also increased in the various goods and services groups (1 percent); housing, water, electricity and gas (0.8 percent); furniture, articles for the home and for the ordinary conservation of the home (0.4 percent), and recreation and culture (0.2 percent).

In the year-on-year comparison, the groups that showed decreases were communications (-0.6 percent); clothing and footwear (-0.5 percent), and food and non-alcoholic beverages (-0.3 percent).

The inflation rate in Panama closed 2017 with an accumulated 0.9 percent, according to official data.

 

https://www.panamatoday.com/economy/accumulated-inflation-rate-between-january-and-august-panama-08-percent-7853

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Panama’s GDP growth lowest since global financial crisis

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Construction strike lasted 4 weeks
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PANAMA’S gross domestic product (GDP)   climbed 3.7% to $2.0393 billion, in the first half pf 2018, the lowest rate of growth of the economy in one semester since the world financial crisis in 2009 GDP grew 2.4%. reports the Comptroller General Since then, the mid-year growth has always reached at least around 5%, with some peaks that exceeded 10%.

The result of this year marks a deceleration of almost two percentage points in comparison with the 5.8% growth of the economy in the first half of 2017.

The one-month strike of construction workers was a  major contributing factor, combined with, shrinking tourism figures leading to layoffs of over 5,000 hotel and restaurant workers.

 

https://www.newsroompanama.com/business/panama-4/panamas-gdp-growth-lowest-since-global-financial-crisis

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Panama's economic activity grows 3.04% between January and July

Sun, 09/23/2018 - 23:32

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Panama's monthly economic activity index (IMAE) grew by 3.04 percent between last January and July, compared to the same period in 2017, the lowest result of recent years according to data from the National Institute of Statistics and Census (Inec).

The monthly variation of the index last July was 1.98 percent, compared with the same month in 2017, said the statistical agency attached to the Comptroller General's Office of Panama.

In the January-July period, the main categories of economic activity that showed favorable trend were fishing, transport, storage and communications, electricity and water, public administration, financial intermediation and trade.

The Inec said that transport and communications services showed a good trend mainly through the Panama Canal, international passenger transport by air and telecommunications.

The electricity and water supply registered positive results due to the greater generation of renewable hydroelectric, wind and solar energy, it added.

Meanwhile, some activities that showed a negative impact were leisure and fun, construction, and mines and quarries exploitation, the Inec added without further details.

The IMAE is an economic indicator that allows us to estimate the path of economic growth in the country, said the statistics agency.

Panama's economy grew by 5.4 percent of gross domestic product (GDP) in 2017, over 5 percent of the previous year, driven by activities related to the external sector such as the interoceanic canal and air and financial services.

The Panamanian government readjusted downward the growth outlook for 2018 and left it at 4.5 percent, arguing the serious blow that meant the strike between April and May in construction, a sector that represented in 2016 the 14.9 percent of GDP but that has been in decline for several years.

Panama's GDP expanded by 4.2 percent in the first quarter of this year, driven by the logistics, services and domestic consumption sectors, according to official data.

 

https://www.panamatoday.com/economy/panamas-economic-activity-grows-304-between-january-and-july-7928

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Panama: Imports Up 9%

From January to July of this year the country reported $7.602 billion worth of purchases abroad, registering a 9% increase compared to the first seven months of 2017.

Monday, September 24, 2018

The latest data from the Comptroller General of the Republic, shows that between the first seven months of 2017 and the same period this year, purchases abroad rose from $7.007 billion worth to $7.602 billion worth.

On the other hand, intermediate goods also increased, in this case by 6%, going from $1.825 billion from January to July 2017 to $1.934 billion in the same period in 2018.

In the matter of purchases of consumer goods for the periods in question, the increase was 12%, rising from $3.196 billion to $3.590 billion.

See complete figures. (In Spanish)

 

https://www.centralamericadata.com/en/article/main/Panama_Imports_Up_9

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Panama: Increasing supply of apartments

At the end of the first half of 2018, the inventory of apartments in the country's capital reached 17,871 units, 5% more than reported at the beginning of the year.

Monday, October 1, 2018

At the end of the first half-year, the absorption of units of apartments built and in progress has decreased, from 92.3% to 87.4% in the first semester of 2018 according to a report by CBRE. This represents a decline from 1,047 sales to a total of 255 sales of 233 buildings reported in our database.
 
The report details that the residential market reported an increase in availability from 7.1% to 8.2% in all its existing units. Both the average requested sales prices and the average requested rental value have decreased.
 
The residential market has been slowing down over the last 2 years, beginning to reflect an increase in availability, which projects a tendency towards slow consumption. Due to the economic context and prices per m2 offered that do not yet fit the needs of the local consumer, explains the document. 

At the end of the first half of 2018, the average requested sales price for existing Class A projects decreased slightly from US$3,067.00 per m2 to US$2,980.00 per m2 as the availability of apartment units increased from 10.5% to 11.1%. As well, existing Class B projects decreased their prices from US$2,255.00 per m2 to US$2,180.00 per m2, due to the increase in availability from 4.8% to 6.3%.
 
See full report.

 

https://www.centralamericadata.com/en/article/main/Panama_Increasing_supply_of_apartments

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IMF: Panamanian economy slows down and will grow 3.7% in first half of 2018

Thu, 10/04/2018 - 16:55

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Panama's economy has temporarily slowed due to a marked slowdown in key sectors, including construction after a one-month strike, and it is estimated that it will grow 3.7 percent in the first semester of this year, said today the International Monetary Fund (IMF).

A mission of the organization submitted on Wednesday in the Panamanian capital, at the end of a visit that began on September 24, a preliminary report highlighting that "despite the temporary slowdown in 2018, the economy is aimed at a rebound in the short term and will continue to be among the most dynamic economies in Latin America".

According to the IMF's diagnosis, Panama is expected to grow by 3.7 percent in the first half of this year, which "compared to 5.4 percent in 2017, reflects a marked slowdown in key sectors, including construction, which was affected by a lengthy strike in April and May".

May 18 marked the end of a strike for wage claims in the construction sector of Panama - which in 2016 accounted for 14.9 percent of gross domestic product (GDP) - which lasted a month and generated losses between 100 and 300 million dollars, according to business and government sources.

The multilateral organization said Wednesday in its report that the unemployment rate "increased marginally to 5.8 percent as of March 2018, compared to the previous year, which reflects a less dynamic activity."

Inflation "remains low and stable, around 1 percent as of August 2018, compared to 0.5 percent in December 2017, despite the shocks in supplies that have caused increases in food prices and fuel," said the report, released on Twitter by Economy and Finance Minister Eyda Varela.

The IMF said that the general deficit of the non-financial public sector (NFPS) reached 1.6 percent of gross domestic product (GDP) in the first half of this year, compared to 0.2 percent in the first half of 2017.

This increase is the product of "lower than expected collections and a strong increase in current and capital spending made in order to provide support during the economic weakening," the document said, among other points.

"Despite the temporary slowdown in 2018, the economy is headed for a rebound in the short term and will continue to be among the most dynamic economies in Latin America.The outlook is positive in the face of a scenario of higher downside risks," reads the IMF document.

It adds that "it will be important to strengthen the anti-money laundering and combating the financing of terrorism control, as well as to improve tax transparency and the exchange of information to lay the foundations of Panama as a regional financial center."

"It will also be important to preserve fiscal discipline as the main instrument of macroeconomic stabilization, as well as to strengthen the fiscal framework through the establishment of a fiscal council," said the financial organization in its preliminary report.

It adds that "given the importance of the financial system in the Panamanian economy, the authorities should continue to strengthen the systemic risk assessment, risk-based supervision, and implement robust macroprudential policy frameworks and crisis management."

In a statement, the Ministry of Economy and Finance said that "the government's actions will continue to be aimed at promoting transparency in the institutions, within a responsible fiscal framework that allows generating the economic boost required by the productive sectors."

"Despite the regional slowdown, Panama remains one of the most dynamic economies, with responsible debt and practically the lowest fiscal deficit in the region," it added.

Already last June, the IMF said it would reduce the growth forecast of 5.6 percent for Panama this year by around one percentage point due to the impact of the construction strike and the weakening of economic activity in the first quarter.

The government said last July that this year's growth forecast is 4.5 percent, below 5.4 percent in 2017.

 

https://www.panamatoday.com/economy/imf-panamanian-economy-slows-down-and-will-grow-37-first-half-2018-8013

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Panama: Property Register falls 9%

During the first eight months of the year, 98,769 properties were registered, 9% less than those reported in the same period of 2017.

Wednesday, October 10, 2018

According to the most recent figures of the General Comptroller, between January and August 2017 and the first eight months of this year, vertical properties reported a decrease of 11%, falling from 84,627 to 75,036.

For horizontal properties, no significant variations were reported for the periods in question, since 23,678 were recorded in 2017 and 23,733 in 2018.

In general, the number of properties fell 8.8% from 108,305 to 98,769. These figures correspond with the decline that has been reported for months ago, in the number of square meters built in the country.

See full report.

 

https://www.centralamericadata.com/en/article/main/Panama_Property_Register_falls_9

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Panamanian Chamber of Commerce cuts 4% GDP growth forecast this 2018

Fri, 10/12/2018 - 11:26

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The Center for Economic Studies of the Chamber of Commerce, Industries and Agriculture of Panama (CEECAM) adjusted its projection of the GDP growth of the country in 2018 and left it at 4 percent, far from the 5.4 percent it had predicted last April.

The economic development of Panama "is impacted in a pre-election year, which generates some kind of uncertainty in the business community, the increase in oil, and the increase in the interest rate, to mention a few factors," the Chamber of Commerce, Industries and Agriculture (CCIAP) said today.

The director of Economic Affairs of the Chamber, Manuel Ferreira, said that according to CEECAM data, in the second quarter of this 2018 the Panamanian economy expanded 3.1 percent, far from the 5.2 percent of the same period of 2017.

The economist and also director of CEECAM said that the amount of foreign direct investment (FDI) fell by 13.2 percent in the first half of 2018, when it reached 2,320.8 million dollars.

However, it can be observed that the reinvested earnings continue to be a component of weight in the values of this indicator, which is positive, Ferreira said, according to a public declaration of the CCIAP, which groups 1,800 companies from 15 Panamanian economic
sectors.

"Even if at this moment there is a slowdown in the economic activity of the country, the CCIAP has positive growth expectations, which will be strengthened as of 2020," the Chamber indicated.

The growth opportunities are based on the strengthening of key economic sectors, including tourism, logistics, construction and the agricultural sector, which will contribute to the generation of employment sources and greater investment opportunities, Ferreira said.

He indicated that by 2019 Panama's economy is expected to grow at close to 5 percent GDP.

According to the updated projections of the International Monetary Fund (IMF), released on Tuesday, Panama's GDP will expand this year by 4.6 percent and in 2019 by 6.8 percent.

The IMF had already announced in June a downward revision, by about one percentage point, of Panama's growth outlook in 2018, due to the effects of a one-month strike in the neuralgic construction sector and a slowdown of economic activity in the first quarter of the year.

 

https://www.panamatoday.com/economy/panamanian-chamber-commerce-cuts-4-gdp-growth-forecast-2018-8078

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Panama falls 9 spots on competiveness  ladder

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Panama dropped nine places to 64th  of 140 countries in the latest edition of the Global Competitiveness Index prepared by the World Economic Forum. 

in Latin America and the Caribbean,  where it was once a leader. it has to settle this year with the seventh position in the regional classification, behind Chile (33), Mexico (46), Uruguay (53 ), Costa Rica (55), Colombia (60) and Peru (63).

The report evaluates the factors that determine the level of productivity of a country This year presents a new methodology that incorporates the fourth industrial revolution.

The World Economic Forum considered the fourth industrial revolution in the measurement of the ranking “because it produces an acceleration of the innovation cycles and causes business models to become obsolete quickly, this dynamic process generates opportunities for new participants and reduces barriers to transfer technology or innovate, and also presents challenges, where countries must establish appropriate mechanisms to reduce the risk of new

financial crises and to control the socio-economic effects of innovation “, highlights the CNC. Panama obtained its best positions in the pillars of health, financial system, and macroeconomic stability, while the pillars with less competitiveness are the labor market, institutions and the adoption of information technology.

The world ranking is led by the United States, followed by Singapore, Germany, Switzerland, Japan, the Netherlands, Hong Kong, the United Kingdom, Sweden, and Denmark.

 

https://www.newsroompanama.com/news/panama/panama-falls-9-spots-on-competiveness-ladder

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