Panama’s Economy Has Accumulated a 4.5% Expansion in GDP Over Nine Months and Grew 3.9% in the Third Quarter
The Panamanian economy maintained a mixed performance: trade, construction, finance, tourism and real estate grew while there was a slowdown in hydroelectric generation, in the Free Zone and some exports. Panama’s Gross Domestic Product (GDP) reached $61,189.7 million between January and September.
Panama’s economy this Christmas season (late 2025) is showing signs of strength, rebounding from challenges, with growth expected thanks to the strong services sector (tourism, banking) and resumption of key exports like bananas, even as the big copper mine closure impacted earlier growth, creating a festive yet resilient economic vibe with increased local spending and tourism.
Key Economic Indicators & Trends:
- GDP Growth: After a slowdown in 2024 due to the copper mine suspension, the IMF projected significant GDP growth (around 4.5%) for 2025 as the economy recovers.
- Services Sector Strength: The core of Panama’s economy—tourism, banking, ports, and commerce—remains robust, driving much of the income and benefiting from increased holiday visitors.
- Export Recovery: Banana exports were set to resume in December/January, adding to economic activity.
- Tourism Boost: The festive season brings more foreign visitors, boosting retail and hospitality, and contributing to a stronger local economy.
Christmas Season Impact:
- Increased Spending: The general Christmas commercialism leads to higher demand for goods and services, stimulating local businesses.
- Festive Atmosphere: Downtown Panama City is reportedly glowing, signaling positive consumer confidence and holiday cheer.
Overall Outlook:
Panama’s economy is in a strong recovery phase for this Christmas, capitalizing on its service-based strengths and recovering exports, promising a brighter economic outlook for the year-end.
