Panama’s Monthly Cost of Living Exceeds $1000 While the Average Panama Salary is $734

A study conducted by the Institute of National Studies (Iden) of the University of Panama reveals that the cost of living for Panamanians is estimated at $1,064 and the cost of the basic basket at $357.  According to Euclides Antonio Méndez, head of the Iden database, the average salary in Panama is $734, which means that a person would be earning $300 below the cost of living. The study reveals that the cost of living is also increasing in urban areas in the interior of the country, by 122 dollars between 2021 and 2024.  According to the weekly La Universidad, salaries in the interior are growing less than in the capital. The average salary in the rest of the country’s urban areas would be 350 dollars short of the cost of living.  Méndez added that from October 2023 to 2024, the cost of living will increase by $18.

He describes this as a delicate fact because salaries are not increasing. The expert recalls that public sector employees receive higher salaries, but after the Covid-19 pandemic, salaries in the private sector have grown very slowly, often falling below $700.  “For private sector workers, the relationship between median income and cost of living is worse, because in private companies there are people who work for less than $700,” he said.  For the middle class, the cost of living has increased more than for the popular sectors, because the latter have lower consumption standards and are more stable.  Méndez points out that inflation will continue to rise because Panama is an importer and what it brings in from abroad increases costs.  The analyst advises Panamanian consumers to reduce certain expenses, moderate their spending habits, look for deals and consume only essential products.