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Panama lowers 2024 economic growth estimate to about 2.5%

Published 20/12/2023, 05:42 am
© Reuters. FILE PHOTO: People ride their bicycles, while the Panama City's skyline is visible in the background, in Panama City, Panama, December 2, 2023. REUTERS/Stringer/File Photo
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PANAMA CITY (Reuters) - Panama's economic growth next year is now estimated at about 2.5%, down "in light of new scenarios," Economy and Finance Minister Hector Alexander said on Tuesday.

Speaking at a 2024 draft budget presentation, Alexander said the reduced figure did not include inflation.

Alexander did not give further detail on the reasoning behind the cut, but a ministry official told Reuters earlier this month that the country could slash its 2024 GDP forecast after the closure of a lucrative copper mine.

Official Hernan Arboleda said at the time the ministry was looking at 1% to 2% economic growth in 2024, down from a previous estimate of 5%.

© Reuters. FILE PHOTO: People ride their bicycles, while the Panama City's skyline is visible in the background, in Panama City, Panama, December 2, 2023. REUTERS/Stringer/File Photo

Last week, the Panamanian government moved to "definitively" shut down Canadian miner First Quantum's Cobre Panama mine in the country, which accounts for some 5% of its GDP, after a court ruling found its contract unconstitutional.

Panamanians had since October protested vehemently against the mine, arguing the contract was too generous.

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