Panama’s Economy Remains Strong
A string of recent reports highlight the strength of Panama’s economy, which continues to outpace many of the established markets around the world.
Moody’s, the international ratings agency, recently forecast Panama’s economy will grow by 4% in 2025, thanks to a rapidly diversifying business environment and the country’s strong foundation. This is especially encouraging after the agency reported growth slowed to 2.5% in 2024, in the wake of the controversy over the closure of the Cobre copper mine operation in 2023.
But the mining controversy is in the rearview mirror (and Panama is still sitting on a $10 billion copper mine that will be developed, at some point). With a new government in place, the International Monetary Fund has made similar positive projections for the country, highlighting Panama’s now legendary resilience to the turmoil around the globe.
“The economy is doing better than we expected” considering all the challenges, Moody representative Renzo Merino said at a recent agency conference.
Meanwhile, officials said the Panama Canal will generate $3.5 Billion in profit in 2024, despite lingering drought conditions and trade slowdowns in many countries. The Canal Authority was able to improve operating margins and efficiencies despite the challenges, maintaining a key driver for Panama’s economy.
Efficiency and the ability to weather hard times have become a hallmark of Panama’s economy. That was highlighted by a recent reporter by the Economic Commission for Latin America and the Caribbean (ECLAC), which concluded Panama is “the most productive country” in the region.
According to the ECLAC report, Panama is the greatest generator of dollars for hours worked, and Panama produced the greatest productivity leap from 2005 to 2024.