Economic activity surges, helped by improvement in vaccination coverage. The 2022 budget proposal comes to the legislature for approval with increasing participation of ACP transfers.

PANAMA - Report 31 Aug 2021 by Marco Fernandez and Alex Diamond

IMAE for the second quarter showed an increase of 27%: April grew 21.3% year over year; May registered a 34.2% increase, and June, a 24.9% increase. This result is the consequence of a revision of the previously published IMAE figures: for April, growth was revised from 12.1% to 21.3%, and in May, from 20.8% to 34.2%. Thus, the IMAE growth through May reported in our previous report (-1.85%) improved to +1.65%. With this new information, the projections for 2021 will be higher than our previous forecasts and closer to the 8.6% the government predicts.

In this report, we discuss the proposed 2022 budget with special emphasis on the increasing importance of the Panama Canal Authority in funding the public sector. In other economic news, the vaccination process is moving efficiently, as 61% of the population is inoculated with at least one dose.

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