Between January and May of this year, the Panamanian economy grew by 4.9%, measured through the Monthly Economic Activity Index (IMAE), consolidating, according to authorities, a solid performance driven by activities linked to both the domestic and external markets.
This is highlighted in the most recent Economic Situation Report, prepared by the Economic and Social Analysis Directorate of the Ministry of Economy and Finance (MEF), which states that Panama continues to position itself among the economies with the best growth prospects in Latin America.
The report indicates that, despite global economic prospects remaining marked by geopolitical and financial risks, a moderate growth expectation persists.
In this regard, the International Monetary Fund projects a 3.0% expansion for the global economy in 2026, while in Latin America, performance will continue to be heterogeneous, depending on each country's exposure to energy markets and external financing.
Contrasting this international outlook, and always according to authorities, Panama maintains a favorable trajectory thanks to the dynamism of strategic sectors such as logistics, commerce, tourism, and construction, which continue to lead economic expansion even in an environment of high uncertainty.
The document also highlights that, although the increase in international prices of…
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Panama continues to position itself among the economies with the best growth prospects, according to a government report. Between January and May of this year, the Panamanian economy grew by 4.9%, measured through the Monthly Economic Activity Index (IMAE), consolidating, according to authorities, a solid performance driven by activities linked to both the domestic and external markets. This is highlighted in the most recent Economic Situation Report, prepared by the Economic and Social Analysis Directorate of the Ministry of Economy and Finance (MEF), which states that Panama continues to position itself among the economies with the best growth prospects in Latin America. The report indicates that, despite global economic prospects remaining marked by geopolitical and financial risks, a moderate growth expectation persists. In this regard, the International Monetary Fund projects a 3.0% expansion for the global economy in 2026, while in Latin America, performance will continue to be heterogeneous, depending on each country's exposure to energy markets and external financing. In contrast to this international outlook, according to authorities, Panama maintains a favorable trajectory thanks to the dynamism of strategic sectors such as logistics, commerce, tourism, and construction, which continue to lead economic expansion even in an environment of high uncertainty. A street vendor attends to his snack stall while several pedestrians walk along a wide sidewalk in a central street of Panama City. (Illustrative Image Infobae) The document also highlights that, although the increase in international oil prices has generated pressures on transportation costs and some services, inflation remained low and controlled, standing at 1.3% as of May. This result was supported by mitigation measures implemented by the government, including fuel subsidies aimed at public transportation, food transportation, and artisanal fishing. Similarly, official information states that the strengthening of economic activity had a positive impact on the labor market. Between January and May of 2026, employment contracts increased by 19.1%, reflecting greater formal employment generation and reaffirming Panama's economy's capacity to sustain growth with stability and resilience. However, the lack of jobs and informality continue to be a problem for thousands of Panamanians. The unemployment rate in September 2025 was 10.4%, an increase of 0.7 percentage points compared to the previous 9.7%. An unemployed man looks through a glass at a pile of dollars, reflecting the contrast between economic growth and poverty. (Illustrative Image Infobae) In the country, unemployment remains one of the most urgent issues, not only because of its impact on the economy but also because of what it means for the stability of Panamanian families, said the Panama Chamber of Commerce, Industries, and Agriculture. Between October 2024 and September 2025, the unemployed population reached 227,302 people, reflecting 17,922 more unemployed individuals compared to the previous period, when they totaled 209,380. Women were the least favored in employment, with 127,488 unemployed, compared to 99,814 men. "More than figures, this defines the magnitude of the challenge and the urgency to act with focus," said the business guild, for whom "employment is not generated in a vacuum." Panama, it added, needs institutions, companies, workers, academia, and citizens to contribute, from their responsibilities, in a unified direction. It is the government's role to facilitate conditions for development, while the private sector's role is to invest, innovate, generate employment, and act ethically and with integrity, the Chamber stated. The economic result is reflected in the most recent Economic Situation Report from the Economic and Social Analysis Directorate of the Ministry of Economy and Finance. Business groups advocate for fostering entrepreneurship among citizens, although they state that one of the main barriers entrepreneurs mention is bureaucracy. Therefore, they request measures to facilitate formalization so that more people can access the benefits of legal business practices.