Panama Steps on the Gas: Economy Grows 4.8% in the First Quarter of 2026

Posted on 2026-06-22

Panama’s economy is kicking off the year with momentum that defies expectations. According to the latest Quarterly Gross Domestic Product (GDP) report published by INEC (the Comptroller General's Office), the country registered a 4.8% growth during the first quarter of 2026 compared to the same period last year.

This result not only places Panama well above the average growth projected for Latin America, but it already surpasses the country's projected annual target for this year. In real terms, the GDP reached B/.22,551 million, representing an increase of B/.1,032 million compared to the first quarter of 2025.

The 4 Engines Driving the Growth

The remarkable economic performance of these first months of the year is largely explained by the dynamism of four key sectors that re-energized commercial and labor activity:

• Colon Free Zone (+22.6%): Re-exports from the free trade zone led the growth in the cumulative period between January and April, cementing Panama's role as the regional logistics hub.

• Construction (+6.5%): A vital sector for job creation that is once again showing robust figures in recovery and infrastructure development.

• Wholesale and Retail Trade (+6.4%): Domestic consumption and commercial movement maintained a strong positive trend.

• Mining and Quarrying (+5.7%): Driven primarily by the demand for materials linked to the surging construction sector.

A Strong Message of Confidence for the Markets

This solid 4.8% growth comes at a crucial time and aligns perfectly with recent international reports—such as J.P. Morgan's—which highlight the country's financial resilience.

By smashing annual targets so early in the year, Panama proves that its internal economic engines and global services are firing on all cylinders, sending a powerful signal of stability and dynamism to international investors.