Malcolm Muñoz General Manager of Citi in Panama Raises Panama’s Growth Projection for 2026
Citi assures that investors’ appetite for the country remains strong and highlights the international interest in infrastructure projects.
Recent regional economic forecasts indicate that Panama’s gross domestic product (GDP) is projected to grow within a range of 3.8% to 4.1%. Citi is considering that 4.6% is a more realistic number. Recent economic data and projections provide further context on Panama’s trajectory:
- First Quarter 2026 Growth: According to official data from the National Institute of Statistics and Census (INEC), Panama’s actual economic growth hit 4.8% in the first quarter of 2026, driven largely by Panama Canal toll revenues. Multilateral Forecasts: The World Bank and the IMF have projected 2026 growth for Panama to be around 4.1% and 3.8%, respectively.
- Global Market Context: Independent financial institutions—such as Citi—continue to monitor overall 2026 economic trends in Latin America and global trade risks, rather than emphasizing a specific 4.4% expansion for Panama.
Q1 2026 Forecast Comparisons
- Citi: Projects economic growth for Panama at 4.4% for 2026.
- World Bank: Forecasts a more moderate 4.1% real GDP growth for 2026, citing a slight cooling from 2025’s 4.4% as global trade dynamics normalize.
- IMF: Projects real GDP growth at 3.8%.
- Independent & Local Agencies: Some local forecasters project even higher figures (up to 5.57%), capitalizing on the early Q1 momentum.
Key Growth-Driving Sectors
The 2026 economic momentum continues to be anchored by specific, service-oriented industries:
- Logistics & Transportation: Anchored by the Panama Canal and the Colón Free Zone, this remains the undisputed backbone of the economy. Transport activity and port operations are strong, and are further bolstered by the planned construction of two new port terminals.
- Construction: This sector is experiencing a major rebound, driven by heavy pipeline investments, large-scale infrastructure projects, and recovering private development.
- Tourism: Expanding steadily, the hospitality and aviation industries continue to act as pivotal pillars of expansion. Increased international visitor numbers and rising tourism revenues are providing robust support to the domestic services economy.
Panama’s economy expanded by 4.8% in Q1 2026 year-over-year, continuing to outpace much of the Latin American region. This strong start reflects ongoing post-pandemic stabilization and consistent demand for Panamanian services. Panama maintains in its portfolio multimillion-dollar investments linked to port terminals, a gas pipeline, logistics corridors, road expansions and projects such as the Indio River reservoir of the Canal, initiatives that are being watched with interest by international investors. Malcolm Muñoz, general manager of Citi in Panama, spoke with News Media about the economic outlook, financing needs, investor interest, and the role that international banking can play in infrastructure projects.
