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Panama opened 2026 with two numbers that should be read together. The economy grew 4.8% in the first quarter compared with the same period last year, while international visitor arrivals rose 17.3%, bringing the country close to one million visitors in just three months.

Together, the figures point to a broader story: Panama’s recovery is being supported not only by its traditional logistics and service sectors, but also by a tourism industry that is becoming more visible in the country’s economic performance.

According to the Ministry of Economy and Finance, citing data from the National Institute of Statistics and Census, Panama’s GDP reached approximately B/.22.55 billion in the first quarter of 2026, an increase of more than B/.1 billion compared with Q1 2025. That growth came in above the 3.9% annual growth rate projected by international organizations for the full year.

That distinction matters. The 4.8% figure compares one quarter against the same quarter last year. The 3.9% figure is a full-year projection. Read together, they suggest Panama started the year ahead of expectations, although the rest of 2026 will determine whether that momentum holds.

The growth was not limited to one sector. Retail and wholesale trade, construction, real estate, business services, land passenger transport, hotels, and restaurants supported domestic activity. On the external side, the Panama Canal, air transport, and the Colon Free Trade Zone continued to play a central role.

Tourism helps explain part of that momentum. The Tourism Authority of Panama reported 999,934 international visitors in the first quarter of 2026, a 17.3% increase over the same period in 2025. Those visitors generated more than B/.2 billion in economic activity, placing tourism close to a record pace early in the year.

The sector is also being supported by a stronger events calendar. Panama has 86 confirmed international events for 2026, including major gatherings such as World of Coffee and the ICCA World Congress, which are expected to bring tens of thousands of additional visitors. Copa Airlines’ Panama Stopover program is also helping convert transit passengers into short-stay visitors, reinforcing Panama’s position as both a hub and a destination.

This is where the two reports connect. The MEF shows the macroeconomic result. The ATP shows one of the forces behind it: more visitors, more events, stronger air connectivity, and more spending flowing into hotels, restaurants, transportation, retail, and services.

For investors and multinational clients, the takeaway is direct. Panama is growing faster than expected, tourism is contributing measurable economic activity, and the country’s role as a regional hub continues to support multiple sectors at once. The Canal and logistics remain essential, but tourism is increasingly doing real work inside the economy.

There are still challenges. Strong GDP growth does not automatically solve unemployment, and the benefits of tourism must continue spreading beyond Panama City into the interior. The real test for 2026 will be whether this momentum creates more formal jobs, stronger regional activity, and renewed confidence from foreign investors.

Still, the first-quarter picture is encouraging. Panama is not simply relying on one engine. Logistics, services, construction, air connectivity, events, and tourism are moving together, and that combination is exactly what gives the country its long-term investment appeal.

5 Things You Should Know

1. How much did Panama’s economy grow in the first quarter of 2026? Panama’s GDP grew 4.8% in Q1 2026compared with Q1 2025, according to the Ministry of Economy and Finance.

2. Why is that growth important? The figure came in above the 3.9% annual growth rate projected by international organizations for the full year, suggesting Panama started 2026 ahead of expectations.

3. How many tourists visited Panama in early 2026? Panama received 999,934 international visitors in the first quarter of 2026, a 17.3% increase over the same period in 2025.

4. How much did tourism contribute to the economy? International visitors generated more than B/.2 billion in economic activity during the first three months of the year.

5. Why does this matter for investors and multinational companies? Because Panama’s growth is being supported by several connected sectors: logistics, air transport, tourism, construction, real estate, services, events, and trade. That mix reinforces Panama’s position as a regional platform for business, investment, and mobility.