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A leading Spanish business publication has released a new report on Panama highlighting the “economic miracle of the richest country in Latin America.”

Panama has “experienced a boom unparalleled in the region,” often called the “Panamanian economic miracle,” El Economista reports. Panama has been one of the fastest-growing economies of the last 25 years and developed into one of the richest countries in the region. The writer notes, headlined, “The economic miracle of the richest country in Latin America, without oil, continues to gain ground on the US.”

As the headline notes, Panama’s growth comes without oil as a driver, which is relatively unprecedented in the world in recent decades. “Panama has become decoupled from the rest of the region,” and its success has made it the one country to approximate the income standards of the United States, the article notes.

The article quotes an International Monetary Fund (IMF) analysis: “Panama has achieved income convergence with US standards much faster than most other Latin American countries in the last 25 years and is now the richest country in Latin America.” 

The article cites several data points to support Panama’s pre-eminence in the region, including a GDP per capita growth rate of 4.4% a year. While the Canal plays a large role, the article goes a step further and points out that investment has played a large role in Panama’s growth.

“The most important factor in Panama’s recent dissociation from the rest of Latin America and the Caribbean in terms of per capita production is the growth of investment, in particular, due to a boom in construction,” The IMF concluded.

Panama’s economy is also diversified, with the development of financial services, tourism, and construction playing an increasing role in the economy.

“These conditions have created a favorable environment for business, attracting investment and stimulating economic growth,” the article concludes. “As a result, the Panamanian economy has grown at a faster pace than most countries in the region, consolidating its position as one of the most dynamic in Latin America.”