Macroeconomic Forecast Panama

BMI View: Despite a worsening financial and economic outlook in the US, Panama's economy continues to fire on all cylinders. On the back of 11.3% real GDP growth in Q407, economic activity expanded by 10.2% in January, driven primarily by a surge in construction, transport and commerce. Construction of a new highway between Panama's two main cities, Panama and Colon, as well as the high-profile canal expansion project should keep the economy on a decent growth trajectory in 2008. We are forecasting real GDP growth of 7.2% this year, down from 11.2% in 2007.

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