IMF: Panama has the Highest GDP Growth and Lowest Inflation in the Region

A report from the International Monetary Fund (IMF) reveals positive indicators for Panama. According to the IMF’s latest World Economic Outlook (WEO) Update, Panama has the highest revision to its Gross Domestic Product (GDP) growth in the region, rising from 3% to 4%.  It also forecasts that the country will have the lowest inflation rate in Latin America. Inflation was recorded at 0.7% in 2024, according to figures from the Comptroller General of the Republic. The IMF projects it will drop to 0.5% in 2025.  Trade tensions, largely caused by tariffs imposed by the United States around the world, have affected the global economy, according to the IMF.

As a result, global GDP growth is now estimated at 2.8% for 2025, down from the 3.3% projected in January. For Latin America and the Caribbean, the growth projection was also revised downward, from an estimated 2.5% in October and January to 2% for this year.  “Despite this adverse regional outlook, Panama stands out as an example of resilience and sound economic management, supported by prudent fiscal policies and a solid recovery in key sectors of its economy,” the Ministry of Economy and Finance stated in a statement. “With this scenario, Panama reaffirms its role as an engine of stability and growth in Latin America,” the statement added.

The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of last resort to national governments, and a leading supporter of exchange-rate stability. Its stated mission is “working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.”