Felipe Chapman Minister of Economy and Finance confirmed that 4% Growth is Expected in Panama for 2025

This Friday July 18 the Minister of Economy and Finance, Felipe Chapman, presented a review of his year in charge of the country’s public finance portfolio.  The Minister of Economy explained that while banana production represents a percentage point of the gross domestic product (GDP), it is not entirely concentrated in Bocas del Toro, but rather distributed across multiple provinces. However, he clarified that the multinational’s departure remains a serious situation for Bocas del Toro.  

“The Chiquita case is a sad and regrettable one, and the human consequences have been devastating for a province with one of the lowest incomes in the country,” he said.  “When we look at the macro effect at the country level, the size isn’t enough to move the needle, but it does affect the Panamanian economy by tenths of a percentage point,” Chapman commented this Friday July 18 during the presentation of his first-year management report. 

Layoffs

Chapman’s statements come as Chiquita Panama, together with Ilara Holding INC, will announce this Thursday that as of July 18, 2025, it will terminate the employment relationship with 1,189 daily workers, citing economic reasons, in accordance with article 213, section C, of the Labor Code.  The official statement clarifies that only employees who have a current relationship with the companies and who have not been found to be on the job will be terminated.  To date, neither Chiquita Panama nor the Ministry of Labor has issued additional statements regarding the social or economic implications of this measure for the region.  Chiquita Panama suspended operations when banana workers went on strike in May and June to support protests against social security reforms, which they alleged would affect their profession. Following this decision, the multinational had begun the process of laying off some 6,500 workers, after accumulating losses of more than $75 million and the fact that 450,000 boxes of bananas could not be exported.

Talks

At this juncture, the MEF minister commented that the government is doing everything in its power to ensure Chiquita Panama remains in the country and continues to generate jobs.  He noted that the multinational has significant losses and must make short-term investments to recover the plantations lost during the months of protests and the workers’ strike.

“I have no doubt that this company will grow and return to the country,” Chapman said.

So far, the meeting planned between the Government and Chiquita Panama “has not yet been finalized,” although the President of the Republic, José Raúl Mulino, has announced a meeting for this week.  The person in charge of conducting the outreach is the Minister of Commerce and Industry, Julio Moltó, who has already stated that this would not be the first meeting they would have.

“This week I intend to have another one, trying to convince the company to stay,” he stated.