Is Panama Burned Out?

One of the best parameters of the strength of an economy is the amount of businesses it creates. In Panama, 47% fewer companies were created in 2017 than in 2016.

Tuesday, January 23, 2018

r="ltr">Not only were fewer companies were created in 2017, but more companies were closed than in 2016.

Although growth of the economy in general still remains above 5% -still far from the vigorous 10% of a few years ago- other macro data, such as the increase in unemployment and the growth of independent or informal work, shows that, starting in 2018, Panama has entered a phase of economic slowdown. Businessmen in the commerce sector are even talking about "recession", both in retail and in wholesale sales.

Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) reiterated "its concern about the problems that are hampering the progress of sectors long marginalized by policies that discourage their permanence and certainly threaten their productive continuity, such as industry and agriculture. The same is true for other slowdowns such as in trade, tourism, construction and real estate, which also require new perspectives in the future,at the same time as proposing different measures to boost the economy. See "Panama: Actions Proposed for Economic Reactivation"

An article on reports that "For the economist Rolando Gordón the increase in unemployment is closely linked to the number of notices of cancellation of operations last year. He indicated that higher costs in electricity bills, as well as in other inputs could have had an impact on the closure of these companies."

See full article on Decrease in business creation (in Spanish).

More on this topic

More Extortion, Fewer Companies

May 2018

In El Salvador every week at least two companies report that they intend to close down due to the impact of extortion, a problem that, far from being resolved, seems to be getting worse every year.

Representatives from the Chamber of Commerce and Industry of El Salvador (Camarasal), said that the country's employers do not see any significant improvement in the security climate, following the six month extension last April of the extraordinary measures of the Sánchez Cerén administration to try to control crime and insecurity.

Panama: Actions Proposed for Economic Reactivation

January 2018

Speeding ​​up the execution of public projects and creating a public-private entity that enhances exports, are some of the proposals put forward by the business association to reactivate different economic sectors.

From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama:

Panamanian Businessmen Optimistic About Future

June 2010

63% of 141 surveyed companies expect to generate more revenue in 2010 than they did in 2009.

This figure was one of the results of a business survey conducted by Cciap, the Panamanian Chamber of Agriculture, Industry and Commerce, in the first quarter of 2010.

“58% of the surveyed companies were more optimistic regarding the local economy, and 52% believe that the country will attract more foreign investment, thanks to an improved economic climate”, reported

Three Tobacco Companies Close in Honduras

April 2009

The closing of Raíces Cubanas and Tabacaleras Unidas tobacco companies, among others, in the communities of Danlí y Paraíso, has left 3,500 unemployed.

Miguel Angel Berrios, president of the Chamber of Commerce and Industry of Danlí said that the economic impact caused by the closing of these factories is still unknown.

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