BMI View: Driven by activity on a number of major infrastructure projects, Panama's construction sectorwill continue to grow throughout our ten-year forecast period, although at a decelerating pace. Given thecountry's low-risk project development environment, Panama will continue to present opportunities forinternational firms particularly as following the exit of Brazilian firm Odebrecht from the market.
Forecast & Industry Developments
We are maintaining our forecasts for Panama's construction industry, which we expect will grow 5.11%in real terms in 2017 and see a deceleration of growth over the remainder of our ten-year forecast period(2018-2026) as the industry adjusts to the end of the massive Panama Canal expansion project in 2016.
Government support for major infrastructure projects will be key to maintaining growth in the yearsahead. Panama has several large infrastructure projects currently underway including the Panama CityLine 2 project with further projects advancing through the project pipeline including Panama City's Line3 project and the construction of a new bridge over the Panama Canal.