Panama’s trade deficit narrowed to PAB 1038.1 million in May 2019 from PAB 1090.5 in the same month of the previous year. Imports dropped 5.5 percent year-on-year to PAB 1101.3 million, mostly due to lower purchases of consumption goods (-9.4 percent), namely non-durable (-9.7 percent), and fuels & lubricants (-15.9 percent); intermediate (-11 percent), in particular raw materials and intermediate products for agriculture (-16.7 percent), industrial raw products (-0.4 percent) and construction materials (-28.5 percent). Meanwhile, imports of capital goods rose (7.1 percent), of which construction (41.7 percent) and other capital goods (13.1 percent). Exports fell 15.6 percent to PAB 63.2 million, mainly due to lower sales of fish (-23.3 percent); steel, copper & aluminum waste (-53 percent); wood (-39.2 percent); unrefined sugar (-98.5 percent) and shrimp (-51.9 percent). Balance of Trade in Panama averaged -714327.04 PAB Thousand from 2003 until 2019, reaching an all time high of -164179 PAB Thousand in February of 2005 and a record low of -1274300 PAB Thousand in October of 2014.
Balance of Trade in Panama is expected to be -1019000.00 PAB Thousand by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Balance of Trade in Panama to stand at -1011600.00 in 12 months time. In the long-term, the Panama Balance of Trade is projected to trend around -1035000.00 PAB Thousand in 2020, according to our econometric models.