News

A key government indicator shows the Panamanian economy is performing better than expected. The Monthly Index of Economic Activity (IMAE) registered a 2.95% year-over-year increase in May, far outpacing the 1.53% increase reported in the same period a year ago.

The IMAE, compiled by the National Institute of Statistics and Census (INEC), is considered a key barometer of economic growth, and the uptick is a positive sign for Panama’s overall economic health. From January to May, the IMAE grew by 5.48% compared to the same period a year ago.

Several sectors were particularly strong in the first half of 2025, and the results provide insight into the strength of Panama’s financial foundation. Transportation, storage, communications, and financial services were all strong, with the Panama Canal providing a steady engine, with toll revenues and net tonnage showing increases.

“Financial intermediation maintained positive results driven by the growth of local deposits and loans… and the electricity and water sector reported growth, with hydroelectric, wind, and solar power generation, among others, standing out,” La Prensa reports.

Panama’s gross domestic product (GDP) grew 2.9% in 2024, far outpacing many of the economies in the region. And, once again, Panama has shown itself resilient to the financial turmoil around the world. The country may have short-term internal issues, such as the closing the Cobre Panama mine, but the economy continues to expand.

The Panamanian government forecasts that Panama’s economy will grow 4% in 2025, the same forecast as the International Monetary Fund (IMF) and above the regional forecast of 2% and the global forecast of 2.8%, La Prensa notes. The latest IMAE results show Panama Real Estate is on track to achieve those numbers.