Panama’s Economy Keeps Growing Despite the Closure of Its Largest Mine

• 19 March, 26

A Resilient Economy in Latin America

Panama’s economy continues to demonstrate resilience even after the shutdown of one of its most significant industrial projects. Despite the suspension of operations at the Cobre Panamá copper mine in late 2023, the country has maintained steady economic expansion.

In 2025, Panama’s gross domestic product reached approximately USD 90 billion, continuing a consistent growth trend of around 4% annually. This steady expansion highlights the strength of Panama’s service-driven economy and its strategic role in global trade.

Even without one of its largest industrial contributors, the country has maintained solid economic momentum, reinforcing its position as one of the most stable and dynamic economies in Latin America.

The Role Cobre Panamá Once Played

Before its closure, Cobre Panamá, operated by First Quantum Minerals, was one of the largest mining projects in Central America and a major contributor to Panama’s export economy.

The mine produced approximately 300,000 to 350,000 tonnes of copper annually, making it one of the largest copper operations in the region.

At its peak, the project contributed roughly 5% of Panama’s GDP directly. When related economic activities—such as transportation, logistics services, contractors, and industrial supply chains—were included, its broader economic impact was estimated at 10–12% of the country’s economic activity.

When operations stopped in November 2023, Panama effectively lost one of its largest industrial export drivers, along with a wide network of economic activities linked to the mining sector.

Panama’s Service Economy Continues to Drive Growth

Despite the closure of Cobre Panamá, Panama’s economy has continued to expand.

Official data indicates that the country’s GDP increased from approximately USD 86.5 billion in 2024 to around USD 90 billion in 2025, representing annual growth of roughly 4%.

Maintaining this level of expansion despite the loss of a major industrial project highlights the resilience of Panama’s economic structure.

Growth continues to be supported by several key sectors:

• Maritime logistics and shipping services linked to the Panama Canal
• International banking and financial services
• Tourism and hospitality
• Infrastructure development and construction

Together, these industries form the backbone of Panama’s service-oriented economic model, reinforcing the country’s role as a regional logistics and financial hub connecting the Americas.

How Reopening Cobre Panamá Could Change the Growth Outlook

While Panama’s economy has proven resilient, many business leaders believe the country’s growth potential could increase further if the Cobre Panamá project returns under a revised legal and regulatory framework.

According to projections from Panama’s industrial sector, reopening the mine could add approximately 1.5% to 2.5% to annual GDP growth.

If that scenario materializes, Panama’s economic expansion could gradually shift from its current ~4% growth rate toward approximately 5–6% annually.

Within three years, reopening the project could potentially increase Panama’s GDP by several billion dollars compared with a scenario where the mine remains closed.

A Key Decision for Panama’s Economic Future

For now, the future of Cobre Panamá remains uncertain. The administration of President José Raúl Mulino will need to determine whether the project can resume operations under a revised legal and regulatory framework.

If a new agreement is reached, the mine could once again become a major export engine, complementing Panama’s already strong logistics and services sectors.

Even without the mine, Panama continues to demonstrate steady economic expansion of around 4% annually. However, if the Cobre Panamá issue is resolved, the country’s economic growth could accelerate further in the coming years.

Panama’s Economic Momentum

Panama’s ability to maintain stable growth despite the closure of its largest mining project underscores the resilience of its economic model.

With strengths in global logistics, financial services, and international trade, Panama continues to position itself as one of the most dynamic economies in Latin America.

Should the Cobre Panamá project eventually return under a new agreement, Panama’s economy may not only maintain its current momentum but potentially enter a new phase of faster growth toward 5–6% annually in the years ahead.

This article is written by Solaya, powered by Mercan Asia — an insights platform focused on global residency, citizenship-by-investment, and real estate trends. If you’re interested in more insights like this, explore further on SOLAYA ASIA.