September 28, 2010
Canal generates about 30% of Panama’s GDP
Not surprising that Transportation would represent such a large portion of Panama’s GDP. According to a recent report from the Comptroller, the value of all goods and services produced in the country is estimated at 26 billion dollars at the close of 2010. Transport and communications represent the largest segment of GDP, followed by property and services (15.1%), commerce (13.3%) and financialĀ (7.9%).
During the second quarter of 2010,Ā transport, storage and communications rose 15.3% compared to the same period last year. Port operations for the quarter grew 25.2%, driven by the increased movement of 20 foot containers.
Although the canal brings in only 4% of that total, the multiplier affect is very significant. This includes expenditures made by employees from their income going to supermarkets, warehouses, restaurants, homes, schools and recreation.
When all is included it is estimated that the canal brings Panama about 30% of the entire GDP. According to local economists, 40% of the $5.5 billion expansion will work its way through the local economy over the next 5 years. That should guaranty Panama’s continued positive growth.