Panama projects trade growth and strong GDP expansion

Panama is projecting over B/. 17 million in business intentions following a commercial mission to the Caribbean. The initiative, organized by the Ministry of Commerce and Industries (MICI), connected 60 Panamanian companies with distributors and partners in Curacao, Aruba, Bonaire, and Sint Maarten through more than 650 business appointments. Key sectors involved include poultry, construction materials, hygiene products, and fruit.

Separately, the Economic Commission for Latin America and the Caribbean (ECLAC) projects Panama's GDP will grow by 4.4% this year and 4.6% next year, outpacing the Central American average. This growth is largely attributed to Panama's strategic role as a logistics and financial hub, centered on the Panama Canal. While geopolitical tensions in the Middle East have increased demand for the canal's transit routes, ECLAC warns of structural vulnerabilities, such as economic concentration and climate risks like El Niño, which could impact water availability for canal operations.