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While most of the world is struggling with rising consumer prices, Panama is bucking the trend. The latest data from the International Monetary Fund (IMF) predicts Panama’s inflation rate will be only 0.5% in 2025, the lowest in the region, by far.

Compared that number to recent headlines worldwide, where roller coaster inflation rates are wreaking havoc. In the United States, economists are cheering an inflation rate that still hovers around 2.3%, and is likely to go higher when tariffs hit. Brazil’s prices are expected to rise 5.3%, Mexico’s 3.5%, and Costa Rica’s inflation 2.2%.

Panama’s 0.5% rate represents a downward adjustment by the IMF from earlier forecasts, and compares to 0.794% in 2024, which means there was little change in what people were paying for groceries and other items. The stability of a low inflation rate is especially important to retirees, who are unlikely to see an increase in income to match inflation.

Overall, Panama’s economic growth story is continuing, according to IMF data. The global economic turmoil caused downward revisions for most economies around Latin America. Mexico’s economy is expected to contract by 0.3% in the next year, due to the recent slowdowns. 

Panama is “in a small group for which the IMF positively revised their 2025 predictions upward in their April update.” Panama’s economy is expected to grow 4% in 2025, compared to an original prediction of 3%, the largest forecast increase in the region, according to the latest IMF report.

The IMF expects Argentina to be the fastest-growing economy in the region, with a 5.5% increase in GDP forecast.