Panama economy projected to maintain strong growth through 2028

Panama's economy shows strong resilience and growth potential, according to recent assessments by the International Monetary Fund (IMF) and the World Bank. The IMF projects economic growth of approximately 5% for 2026, following a 4.4% growth rate in 2025. This momentum is largely driven by increased transit through the Panama Canal, expanded air connectivity, tourism, and related services.

The IMF also highlighted improvements in fiscal discipline, noting that the non-financial public sector deficit was reduced to 3.7% of GDP in 2025, staying below the legal limit. This was achieved through expenditure containment despite lower-than-expected revenue.

Similarly, the World Bank expects Panama to maintain a GDP growth rate above 4% through 2028, outperforming the projected 2.2% average for the Latin American and Caribbean region. While macroeconomic fundamentals remain strong due to sound policy decisions, the World Bank noted that challenges such as informal employment, human capital deficits, and climate vulnerabilities continue to impact poverty reduction and private demand.