Panama economy shows growth as banking assets rise

Panama's economy is showing significant signs of recovery and expansion. According to a UBS report, the country's real GDP is projected to grow by more than 5% in 2026, following a 5.5% expansion in the first half of the year. This growth is driven by household consumption, a rebound in construction, tourism, and record revenues from the Panama Canal, which has benefited from shifts in global trade routes.

Fiscal discipline has also improved, with the accumulated fiscal deficit dropping to 3.3% of GDP in the second quarter of 2026, down from 6.4% in early 2025. This reduction is attributed to spending cuts and increased tax collection.

Simultaneously, Panama's International Banking Center (CBI) reported solid growth in assets, deposits, and equity as of June 2026. Total assets reached US$169,630 million, a 6.95% increase from June 2025. Deposits rose by 7.69% to US$121,866 million, and equity grew by 8.80% to US$20,597 million. However, despite this scale expansion, profitability indicators have trended downward; the Return on Assets (ROA) fell to 1.76% in 2026, and the Return on Equity (ROE) declined to 15.01%.