IMF Forecasts Solid Economic Growth
The International Monetary Fund’s (IMF) latest report paints a rosy picture of Panama’s economic future.
The closure of the Cobre Panama mine in 2023 affected Panama’s growth numbers, but the economy is back on track, the IMF’s executive board said in a recent statement. The IMF now expects Panama’s economy to grow 4.5% in 2025 and to keep growing at 4% a year through 2030.
The bounceback once again positions Panama as one of the strongest economies in the region. The numbers also speak to the vigor and diversification of the economy, which has shown tremendous resilience in the face of the mine controversy and global turmoil.
Panama has been “one of the world’s fastest-growing economies in the last decade,” including a 7.4% expansion in 2023, before the copper mine closed, Reuters reports. After dropping to 2.9% in 2024 — still outpacing many of the major economies in the region — Panama is back on track, with non-mining sectors continuing to grow, the IMF says.
“The economy is recovering from the impact of the Cobre Panama mine closure,” and it is expected to continue the recovery in the years ahead, the IMF said in a statement.
The IMF also said a spending reduction plan approved by the cabinet, if fully implemented, could bring the government’s 2025 fiscal target within reach, Reuters reports.
