Panama's GDP grew by 4.4% in the first half of this year, and this indicator is expected to close with an expansion of around 4%, well above the 2.9% of 2024 but still far from the 7.3% of 2023.
The growth was driven by the transport, storage, and postal sectors, which recorded an accumulated expansion of 15.3% in the third quarter, followed by hotels and restaurants (5.9%), financial and insurance activities (5.5%), and real estate, professional, scientific, technical, and administrative support activities (4.6%).
The transport, storage, and postal sector contributed 45.1% of the total GDP increase, driven by the full-capacity operation of the Panama Canal and the dynamism of international trade and the growth of air and land transport, specified the Ministry of Economy.
The gross domestic product (GDP) of Panama expanded by 4.2% in the first nine months of 2025, compared to the same period of the previous year, driven by the good performance of the logistics sector, tourism, and financial services, reported this Friday the Ministry of Economy and Finance (MEF).
The closure of a large copper mine at the end of 2023, the persistent effects of the productive paralysis due to the 2020 pandemic, and structural issues have negatively impacted Panama's economic performance, local analysts and risk rating agencies have explained.
The Ministry of Economy indicated that "on a quarterly basis, real GDP grew 3.9% year-on-year in the third quarter of 2025, continuing the recovery path begun at the end of 2024 (4.8%) and strengthened in the first quarter of 2025 (5.2%). Although growth temporarily moderated in the second quarter (3.4%), the recent evolution confirms a positive and stable economic dynamism".
Likewise, other sectors showed "moderate but positive growth", such as wholesale and retail trade (3.1%) and construction (2.1%), said the MEF.
On the other hand, the agricultural sector contracted by 0.9%, a result mainly associated with conjunctural factors in the production and export of bananas.
The hotels and restaurants sector was favored by the increase in the number of visitors and tourist spending, while financial and insurance activities reflected the expansion of credit, the increase in deposits, and higher income from commissions in the International Banking Center.
