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Panama's economy will slow to 2.9% growth in 2024 following the closure of key mines

Panama's economy will slow to 2.9% growth in 2024 following the closure of key mines

Official data released on Wednesday showed that Panama's GDP grew by 2.9% in 2024. This is a significant slowdown from the 7.4% growth of the previous year, due to a decline in air travel and the closure of a large copper mine.

Panama's economy grew at a rapid pace in the past decade. However, authorities predicted that growth would slow down, due to the closure by Canadian mining company First Quantum of a copper-mining operation, after clashes over tax contributions and the environmental impact.

According to a National Institute of Statistics and Census report, "Air transportation decreased, as well as the exploitation of quarries and mines, due to the closing of the copper mining operations."

The previous government of Panama ordered First Quantum in 2023 to close the open-pit Cobre Panama Mine after protests by many people over environmental concerns. The mine was a major source of copper in the world, contributing 1% to global output.

Report: The growth of the Central American nation's economy in 2024 will be primarily driven by sectors related to international trade. These include the Panama Canal, where toll revenues have increased, as well as commercial activity at the Colon Free Zone.

It added that among the sectors within the country which recorded positive results last year, were construction, real-estate, business and financial services and transport activities. (Reporting and writing by Elida Moreno, Aida Pelaez Fernandez, Editing by Bill Berkrot).

(source: Reuters)