News

Panama’s economy is growing, but the next test is whether that growth can produce more jobs, better services, and stronger private investment.

That was the main message behind Panamá Pa’ Ti, which translates roughly as “Panama for You.” The new government plan focuses on four areas: employment, health, the basic food basket, and water.

President José Raúl Mulino presented the plan after describing the first stage of his administration as a period of fiscal cleanup. According to the government, $1.5 billion in obligations to suppliers has been paid, public accounts have been updated, and stalled projects have been pushed back into execution.

Mulino said he rejected early recommendations to raise taxes or cut 20% of the public payroll.

“I was not elected to transfer the problem to Panamanians. I was elected to solve it,” he said.

The employment target is clear: help generate 80,000 new private-sector jobs without expanding the public payroll. To support that goal, the government announced a $1 billion alliance with BID Invest aimed at financing productive sectors, especially small and medium-sized businesses.

The plan arrives at a moment when Panama has better economic numbers than expected. GDP grew 4.8% in the first quarter of 2026, above the 3.9% full-year growth forecast previously projected by international organizations.

Tourism is also helping. Panama received 999,934 international visitors in the first quarter of 2026, a 17.3% increase from the same period last year. Visitor activity generated more than B/.2 billion in economic circulation during those three months.

Those numbers matter because sectors such as tourism, construction, logistics, retail, restaurants, transportation, real estate, and business services can turn growth into visible activity. That is where the plan will be measured.

Panama also reported more than 84,000 new labor contracts in the first quarter of 2026, a 25% increase compared with Q1 2025. The challenge is making sure that job creation becomes more stable and formal over time.

Infrastructure is another part of the strategy. The government highlighted progress on Metro Line 3, the Fourth Bridge over the Canal, new trains for Metro Line 1, planning for Line 2A, and the Panama-David train feasibility study.

For investors, the plan is important because it tries to connect public finances, private financing, infrastructure, employment, and services into one agenda. But the real issue is execution.

Panama already has momentum: stronger GDP growth, rising tourism, more labor contracts, and major infrastructure projects underway. The question now is whether those figures can translate into better daily conditions and more confidence from the private sector.

If Panama for You becomes a practical plan for jobs, services, and investment, it could help move the country into a stronger phase of growth. If it remains a list of announcements, the economic numbers will not be enough.

5 Things You Should Know

1. What is Panamá Pa’ Ti? It is a new government plan focused on employment, health, the basic food basket, and water. In English, the name can be understood as “Panama for You.”

2. What is the main employment goal? The government wants to help generate 80,000 new private-sector jobs without expanding the public payroll.

3. How is private investment involved? The plan includes a $1 billion alliance with BID Invest to support productive sectors, especially small and medium-sized businesses.

4. How is Panama’s economy performing? Panama’s GDP grew 4.8% in Q1 2026, above the 3.9% full-year growth forecast previously projected by international organizations.

5. Why does tourism matter here? Tourism is one of the sectors turning growth into activity. Panama received 999,934 international visitors in Q1 2026, up 17.3%, generating more than B/.2 billion in economic circulation.