Final Qtr- of 2023 reported STRONG growth in the Republic GDP.
- By : James Bryson
- Category : Economy, Financials
Bracho: this growth translates into an increase in the hiring of people and greater income for companies
The Quarterly Gross Domestic Product (GDP) grew 8.9% compared to the same period in 2022 during the first nine months of 2023, according to data from the Comptroller General of the Republic.
This means, according to economist René Bracho, that various activities of the Panamanian economy: logistics, the canal, trade, among others, had a positive performance during that period, accompanied by the respective increase in the number of transactions in the economy. compared to the previous year.
He explained that, generally, this growth translates into an increase in the hiring of people, greater income for companies and their staff (commissions for salespeople and collaborators), and improvement in working conditions and an increase in credits granted by banks (for mortgages, cars, consumption and investment).
The Comptroller’s Office detailed that 8.9% corresponded to an amount of $57,639.7 million, a contribution in the nine months of $4,687.9 million more than the same period in 2022.
The entity emphasized that the GDPT increase in this quarter is explained by its components related to the internal economy, resulting from the favorable performance of activities such as: Construction with permit value at 34.8%, wholesale and retail businesses with fuel sales by 14.6% and car sales by 15.5%, and the manufacturing industry with concrete production by 18.8%.
Other activities that contributed to the growth were: alcoholic beverages by 12.7%, electricity with thermal generation by 2,128.0%, land transportation with increases in passengers on the Metro and Mi Bus by 12.1% and 4.0%, respectively; corridor capacities at 10.6%, financial services at 3.7%.
The statement from the Comptroller’s Office highlighted that other positive contributions were restaurants, telecommunications and real estate, business and other service activities.
In passenger transportation through the Tocumen International Airport, an increase of 8.3% was recorded and the Panama Canal also showed a positive variation of 15.0% in toll revenues.
While those that registered negative variations, the generation of hydraulic energy at 38.1% and the slaughter of cattle and pigs at 0.5% and 1.3% respectively.
Economist Raúl Moreira stated that GDP growth of around 8.9% is very good news for the official discourse about economic recovery after the pandemic. “I agree that a good level of economic activity was being experienced, again the INEC gives us an extraordinary growth figure,” he argued.
The expert clarified that although the economic numbers are good, the population still needs to begin to feel the benefits of this growth in terms of the generation of decent jobs, better health care and better education, among others.
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