Panama: A Bright Spot in Latin America’s Economy

While much of Latin America is bracing for slower growth, Panama continues to stand out as one of the region’s most dynamic economies. According to the latest 2025 Economic Survey by the United Nations’ Economic Commission for Latin America and the Caribbean (ECLAC), Panama is expected to grow by 4.2% this year and 4.6% in 2026 — far above the regional average of just 2.2%

For expats, retirees, and investors, this is encouraging news. It means that Panama remains a country of opportunity, stability, and resilience at a time when much of the world is facing uncertainty.

Why Panama Keeps Growing

Several factors explain Panama’s strength:

🌍 Global Connectivity – The Panama Canal and the country’s logistics network keep it at the center of international trade.

🏦 Financial Services – Panama remains a regional hub for banking and finance, now expanding into fintech and sustainable investment.

🏖️ Tourism & Lifestyle – From the buzz of Panama City to pristine beaches and mountain retreats, tourism is bouncing back and adding energy to the economy.

🏗️ Ongoing Investment – Major infrastructure projects — ports, highways, and airports — continue to attract international partners and boost long-term growth.

What This Means for You

For those considering Panama as a place to live, retire, or invest, this economic outlook brings confidence:

• Real Estate: A growing economy supports property values, particularly in prime locations like Panama City, Coronado, or mountain retreats such as Altos de Campana.

• Lifestyle: Tourism growth and infrastructure investment mean more restaurants, services, and cultural offerings for residents.

• Opportunities: Entrepreneurs and small businesses can benefit from a market that’s expanding faster than most in the region.

Challenges to Keep in Mind

Of course, Panama isn’t without challenges. Climate change — especially droughts affecting the Canal — remains a concern, and the country will need to continue investing in sustainable solutions. Public finances are also under pressure, meaning future governments must strengthen tax systems and ensure resources are invested wisely.

Still, compared to many of its neighbors, Panama is well-positioned to adapt and continue growing.

Reside Panama Perspective

At a time when much of Latin America is slowing down, Panama shines as a bright spot, with steady growth, strong global connections, and a lifestyle that keeps attracting new residents and investors.

For anyone looking to make Panama home — whether temporarily or for the long haul — the message is clear: Panama is not just keeping pace, it’s setting the standard for growth in the region.