Panama boosts investments to lead as a global logistics hub

Posted on 2025-08-13

Strategic Investments Drive Panama's Economic Growth

Panama is on the verge of a new investment cycle that promises to boost its economic growth and consolidate its position as a world-class logistics hub. This is the opinion of engineer Domingo Latorraca in his analysis titled "The Next Step," which highlights the structural opportunities and challenges the country faces in this new phase.

With GDP growth prospects between 4.0% and 4.5% in the medium term, Panama is emerging as one of the region's economic leaders. This growth will be stimulated by a series of infrastructure projects, including the expansion of port capacity, new logistics platforms, and the modernization of the Panama Canal.

Latorraca emphasizes that, despite the progress, key challenges remain, such as structural reform of the public sector, spending efficiency, and improving the quality of state services. In fiscal matters, the country has adopted initial measures such as pension system reform and a $1.9 billion public spending containment plan.

One of the critical issues is the saturation of logistics capacity. The Panama Canal operated at more than 80% of its capacity in 2023, and the country's ports handle more than 8.3 million TEUs per year, working at 90% of their capacity. Faced with this reality, projects such as the port development in Corozal and Telfers, the construction of Puerto Barú in Chiriquí, and a new energy corridor with an estimated investment of $4 billion have been launched.

Likewise, the Río Indio project, led by the Canal Authority, seeks to guarantee the water supply for more than 2 million people and for the safe transit of ships, with an additional production capacity of 715 million gallons per day.

The author also calls for connecting this logistics platform with key sectors such as agriculture, agroindustry, and manufacturing to increase productivity and promote exports. At the same time, he emphasizes the importance of continuing to strengthen the Panamanian financial system under international transparency standards.

In a challenging global context, Latorraca concludes that Panama must advance not only its logistics role, but also as an example of economic openness, respect for the rule of law, and sustainable human development.