The Panamanian economy is still advancing, but the momentum is not the same. In 2025, there is a slight improvement in contracts, but not enough to change the life of the average Panamanian. Inflation is practically zero, with even mild deflation (-0.04%), which sounds good but is actually a symptom of something else: people are spending less, demand is weak, and businesses are feeling it.
On the other hand, public finances remain under pressure. APEDE warns of a high fiscal deficit, growing public debt, and tax collection far below international standards. This is compounded by a dramatic drop in Foreign Direct Investment (-121% in the first half), with companies withdrawing capital and reinvesting less in the country.
The international environment is not helping either: cuts by the Federal Reserve that provide some relief, but global tensions, higher transportation costs, and a still-sensitive country risk, with Panama maintaining its Baa3 rating but with a negative outlook, according to Moody's.
These pillars support growth. But there are also warning signs. The Colón Free Zone continues to fall, banana exports have plummeted, construction is advancing irregularly, and wholesale trade is losing strength. In other words, the country is moving forward, but with a limp.
APEDE also highlights another point that directly affects daily life: the labor market. Although there are no new figures from INEC, the latest data show high unemployment, nearly 50% informality, and a decline in formal employment.
The figures presented by APEDE (Panamanian Association of Business Executives) show that the country remains in positive territory, although with clear signs of cooling. And while the numbers speak, people on the street confirm it: less formal work, less movement, and a slower-feeling consumption.
According to APEDE, Panama's GDP grew 4.4% in the first half of 2025, driven mainly by the sectors that always step up: logistics, transportation, the Panama Canal, banking, and tourism. However, in the day-to-day economic activity, the reality is seen: the IMAE rose only 1.61% in August, showing that the economic engine is decelerating.
The sectors that keep Panama afloat are clear: transportation and logistics, financial services, hotels and restaurants, and retail trade. The Canal increased its toll revenue by 24%, and tourism began to breathe again.
