Panama Construction Industry Report 2024: Output To Grow By 6.9% This Year Following Annual Growth Of 19.7% In 2023 - Forecasts To 2028

(MENAFN- GlobeNewsWire - Nasdaq) Dublin, Oct. 09, 2024 (GLOBE NEWSWIRE) -- The "Panama construction market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, energy and Utilities, Institutional and Residential Market Analysis to 2028 (H1 2024)" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Panama is projected to record a growth of 6.9% in 2024, after experiencing an annual growth of 19.7% in 2023

This slowdown is attributed to reduced trade activity caused by a drought affecting traffic in the Panama Canal as well as the closure of the Cobre Panama mine following a protest over its new long-term operating contract. The Cobre Panama mine is a significant component of Panama's economy -, it contributed approximately 5% to country's GDP in 2022.

The closure of the mine will result in sluggish tax revenues and exacerbate the current challenges in government spending. Moreover, the ongoing headwinds such as high construction material prices, as well as supply chain disruptions caused by the Red Sea conflict are expected to impact the industry's growth in the short term.

In another setback to the industry's output, the total permitted construction area of the main municipalities in the country fell by 42.8% year-on-year (YoY) in the first three months of 2024, owing to a 34.1% YoY fall in the permitted construction area of residential buildings and a 56.9% YoY fall in the permitted construction area of non-residential buildings, according to the National Institute of Statistics and Census of Panama (INEC).
The analyst expects the construction industry in Panama to record an annual average growth rate of 5.3% between 2024 and 2028, supported by investments in transport, renewable energy, green hydrogen, and telecommunication infrastructure projects. The government is undertaking a $2.8 billion railway infrastructure project that involves the construction of a Panama Metro Line 3 line between Albrook to Ciudad del Futuro, with a 6km tunnel section under the Panama Canal.

As of February 2024, civil works on the Panama Metro Line 3 were 50% complete, according to Panama Metro, which is a state-owned company responsible for implementing infrastructure works and providing equipment necessary for operation of the Metro system in the city of Panama. Construction works are expected to be completed by 2027. The government is also focusing on attracting investors in its green hydrogen sector by providing various policy incentives, such as exemption from import taxes on required equipment for renewable hydrogen production projects.
Scope

• Historical (2019-2023) and forecast (2024-2028) 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 analyst'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 analyst's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.

Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Latest news and developments
4 Project analytics
5 Construction Market Data
6 Risk Profile
7 Appendix
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