Panama's GDP contracted 17.9% in 2020 due to Covid-19
The total production of goods and services in the Panamanian economy, measured through the Gross Domestic Product (GDP), reflected a contraction of 17.9% during 2020, compared to 2019 when it was in the order of 43,032.8 million USD, announced the Comptroller General of the Republic.
According to estimates by the National Institute of Statistics and Census ( Inec ), released this Monday the GDP 2020 - valued at constant 2007 prices - reflected an amount of $35,308.7 million, which corresponds to a decrease of $7,724.1 million, in compared to 2019.
In unit terms, this means that GDP per capita reflected that - at 2019 values - each person lost $1,805 in the past year.
"This reduction in the performance of economic activities was the result of the COVID-19 pandemic that forced Panama to declare a health emergency at the end of the first half of March when the first positive cases were detected in the country," says the Comptroller's statement.
According to activity
Later, in November an environmental emergency was added with the passage of Hurricane Eta and Tropical Storm Iota.
Among the relevant activities that sustained the performance of the national economy and marked a positive dynamic from January to December 2020, government services stand out with 9.9%, with accumulated growth due to the hiring of collaborators in the health, education and security sectors public, necessary to address the health crisis; private health services with a growth of 4.7%, while agricultural activity showed an increase of 3.0%, fishing grew 12.2% and the exploitation of mines and quarries 34.1%.
Other activities that presented a favorable performance also stand out: in the transportation sector, positive rates were registered in the Canal's toll revenues of 1.7%; movement of TEU containers in 5.3%; while agricultural production showed an increase in FOB banana exports by 10.0%; fish and fish fillet at 23.0%; In mines and quarries, a 34.4% growth was reflected in the export of copper minerals and their concentrates.
In domestic trade, the sale of marine fuel in ports with 3.6%.
It should be noted that the negative impact was reflected in the substantial decrease in activities of manufacturing industries (-22.2%), construction (-51.9%), wholesale and retail trade (-19.4); hotels and restaurants (-55.8); transport, storage and communications (-6.2%) and real estate, business and rental activities (-30.8%).