Panama's Economy Shows Steady Growth in 2025

Panama's Monthly Index of Economic Activity (IMAE) grew by 4.37% year-on-year as of last November, accumulating an expansion of 4.36% in the first eleven months of 2025. This growth was driven by sectors such as transport, construction, and finance, according to data from the National Institute of Statistics and Census (INEC) released this Monday. When explaining the year-on-year result of the IMAE, which is a production indicator that helps approximate the country's economic growth path, the statistical body noted that the transport, storage, and communications sector maintained its growth, boosted by the Panama Canal. The canal saw increases in its toll revenues and net tons transported by vessels, a dynamism that was in turn supported by air transport and container movement in the national port system. According to INEC, construction showed an increase driven by buildings, additions, and repairs, measured through permits granted by municipalities. This expansion generated a greater demand for basic inputs, which benefited the mining and quarrying activity. Panama's Gross Domestic Product (GDP) grew by 2.7% in 2024, driven by commerce and internal consumption, although marked by the drag from the abrupt closure of a large copper mine, which has slowed its expansion rate. On the other hand, negative variations were shown in the commercial activity of the Colón Free Zone, due to the lower value of goods re-exports; the cultivation of bananas for export; and the export of fish, fish fillets, and other refrigerated and frozen marine products. The Panamanian government maintains the expectation of 4% economic growth in 2025. The year-on-year expansion of 4.37% in November 'is lower than the 7.44% reported in the same month of the previous year,' INEC specifies. GDP expanded by 4.4% in the first half of last year 2025, compared to the same period in 2024, driven by the interoceanic canal, according to the statistics of Panama's General Comptroller's Office. Commercial activity registered moderate positive rates; financial intermediation maintained an upward trajectory derived from deposits and credits; and the hotels and restaurants services sector maintained the dynamism of previous months, said INEC. The industry presented positive results in the elaboration of some essential food products, such as chicken meat processing, slaughter of swine and cattle; and in the production of alcoholic beverages such as beer, seco and other liquors, added the statistical body.