Exports decrease dramatically in 2009

PANAMÁ. Panamanian exports are continuing their precipitous fall.

The latest numbers from the Comptrollers office show activity has dropped by 44 percent.

The world economic crisis has affected Panamanian export business and the negative effect is expected to continue till year end.

In the first five months of 2008, Panamanian exports amounted to $633.5 million but in the same period, in 2009 they were only $352.5 million.

The only items that registered an increase in the first five months of 2009 were unrefined sugar, fuel products and meat.

The biggest fall was in banana exports, which went down by 52 percent: In 2008, 47.2 million cases were exported and this year only 22.4 million cases left the country.

Melon exports went down 68 percent, watermelon 53.4 percent, shrimp larvae 49.5 percent, coffee 38.7 percent, clothing 47.2 percent and live cattle 63.6 percent.

Maximo Gallardo, President of the Panamanian Export Association, (APEX) said the key factors of this decrease are lack of credit facilities, the loss of import duty benefits from the European Union, agricultural diseases on the produce and of course the world economic crisis.

Gallardo thinks the reduction on electricity costs will have a positive effect for exporters and has confidence the new authorities are making efforts to improve the situation for next year.