Panamanian economy grew 4.4% in the first half of 2025

• 26 November, 25

Panama’s economy continued to show solid momentum in the first half of 2025, with Gross Domestic Product expanding 4.4% between January and June, according to the Institute of Statistics and Census. At constant 2018 prices, GDP reached $40,379.6 million, marking an increase of $1,689.8 million over the previous year. Growth remained positive throughout the period, though the pace eased slightly in the second quarter, which posted a 3.4% rise compared to 5.2% in the first quarter.

The expansion was driven by broad-based strength across the domestic market. Construction activity rebounded strongly, supported by renewed progress in private residential and non-residential projects. Retail trade also grew, led by higher sales of food products (3.8%) and textiles (8.8%), while car sales increased by 2.4%. The financial sector contributed notably, with financial services expanding 2.3% and commissions jumping 12.7%. Manufacturing activity improved as well, especially in meat processing, with poultry production rising 3.9% and pork increasing 4.9%. Renewable electricity generation delivered one of the most dynamic performances, surging 18.5%, and additional gains were recorded across land transport, hospitality, telecommunications, real estate, business services, and other related industries.

External-facing sectors also reinforced the country’s economic momentum. The Panama Canal posted a robust 24.1% increase in toll revenues, reflecting stronger global transit activity, while air transport through Tocumen International Airport saw passenger traffic rise 12%, underscoring the country’s role as a key regional aviation hub.

Cre: Solaya