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Panama

Panama's economy in 2025 continues to stand out as one of Latin America's most open and service-oriented economies, benefiting from a strategic geographic location that connects the Atlantic and Pacific Oceans through the Panama Canal—a vital global maritime route. The country enjoys a fully dollarized economy, low inflation around 2.1%, and a stable investment climate that supports its role as a regional logistics and trade hub. Panama's GDP grew by approximately 5.1% in 2024 and is projected to expand by 4.5% in 2025, supported by robust growth in sectors such as logistics, transportation, commerce, and public infrastructure.

The logistics and maritime trade sector remains the backbone of the economy, accounting for more than 13% of GDP. Significant investments in port infrastructure, multimodal logistics hubs, and canal modernization aim to strengthen Panama's position as the “Singapore of the Americas.” The transport sector alone grew by over 26% in early 2025, fueled in large part by the Panama Canal, whose toll revenues surged by 43.6%. The country also leads the region in air cargo connectivity and digital logistics platforms, catering to increasing global trade volumes.

Financial services form another cornerstone of Panama's economy. The banking system is among the most developed in Latin America, with over 70 international banks operating within the country. Regulatory modernization is fostering fintech innovation, digital wallets, and cross-border payment systems. This makes Panama a critical financial bridge between North and South America.

Looking ahead, Panama's business environment is shaped by continued efforts to modernize infrastructure, digitalize services, and promote innovation. Its stable macroeconomic fundamentals, strategic logistics networks, and robust financial sector provide a resilient foundation for growth. While challenges such as poverty, fiscal deficits, and income inequality persist, Panama's focus on sustainable development and diversification positions it as an attractive destination for international business and investment in Latin America.

Overall, Panama in 2025 offers a vibrant, growth-oriented economy with strengths in logistics, finance, infrastructure, and trade, making it a strategic hub for companies seeking regional expansion and access to global markets.

Payment methods in Panama: