Construction in Panama - Key Trends and Opportunities (H2 2021)

Panama’s construction industry suffered the sharpest contraction in South and Central America region during the Coronavirus (COVID-19) pandemic, with industry output dropping by 51.5% in real terms in 2020. In 2021, the industry is expected to rebound and expand sharply by 47.8% in real terms, owing to the very low base in 2020 and the resumption of economic activities. The industry’s output value, measured at constant 2017 US dollar exchange rates, is expected to increase from US$12.4 billion in 2020 to US$18.6 billion in 2021.

According to the National Institute of Statistics and Census of Panama (INEC), the construction industry grew by 10.5% year on year (YoY) in the first six months of 2021. Panama’s construction output posted a year-on-year (Y-o-Y) expansion of 489.5% in Q2 2021, but the value of construction output was still 37.2% lower than in Q2 2019. Sub-sectors of the industry have started to witness gradual improvement as retail, real estate, manufacturing and export activity recovers. However, the country was hit by another wave of the virus in early July 2021, with the government tightening restrictions for all domestic and international activity. Thus, in Q3 2021, growth of the industry is expected to lose pace, although this is likely to be short lived as the government started easing restrictions as of September 2021. In addition, an accelerating in the vaccination program across the country bodes well for business confidence in the remainder of the year. As of November 25th, 2021, the country had administrated vaccinations to 56% of the total population.

In October 2021, the government announced the revised General State Budget for the fiscal period of 2022. The total budget amounted to US$25.3 billion - an increase of 0.66% from the original budget announced in August 2021, and up by 4% from the budget approved for 2021. Of the total budget, US$4.8 billion will be allocated towards the infrastructure development sectors, and US$3.9 billion for the healthcare sector.

Over the remainder of the forecast period, the construction industry is expected to stabilize at an annual average growth rate of 12%, supported by public and private sector investment on the development of transport infrastructure and energy construction projects. The government’s investment on the Sustainable Tourism Master Plan 2020-2025, along with plans to implement a tourist vaccination program, is also expected to boost the tourism and hospitality sector over the forecast period.

The publisher’s Construction in Construction in Panama - Country Briefing (H2 2021) report provides detailed market analysis, information and insights into Panama’s construction industry, including:

• Panama’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Panama’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Panama. It provides:

• Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Panama, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using the publisher's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.