Panama’s multidimensional poverty rate fell from 14.7% in 2022 to 12.4% in 2025, according to the latest report from the Ministry of Economy and Finance (MEF). The decline means an estimated 83,949 people moved out of multidimensional poverty in just three years.

The latest figures are part of a longer improvement. When Panama introduced its official multidimensional poverty measurement in 2017, the rate stood at 19.1%. By 2025, it had fallen to 12.4%.

Between 2022 and 2025 alone, multidimensional poverty declined in 11 of the 13 geographic areas measured in the report.

What Does ‘Multidimensional Poverty’ Mean?

Poverty is often measured by income, but income does not tell the whole story.

Panama’s Multidimensional Poverty Index looks at 17 different indicators covering education, housing and basic services, employment, health and environmental conditions.

In simple terms, it measures whether people have access to some of the basic things needed for a reasonable quality of life.

A household is considered multidimensionally poor when it faces disadvantages in at least 30% of the weighted indicators included in the index.

The latest report found improvements in 15 of the 17 indicators between 2022 and 2025, suggesting that the decline was spread across several areas rather than being driven by one statistic alone.

More Than 3,400 Rural Homes Connected to Electricity

One of the clearest improvements involved electricity.

Government rural electrification programs connected 3,407 homes in rural, indigenous and difficult-to-access communities to electricity, supported by more than B/.7.4 million in investment.

The largest number of new connections was recorded in Ngäbe Buglé, where 1,580 homes received electricity. Another 681 were connected in Coclé, 483 in Bocas del Toro, 391 in Veraguas and smaller numbers in Colón, Los Santos, Panama Oeste and Herrera.

These projects helped reduce the deprivation indicator related to lack of electricity by 39.8%.

For the households involved, the impact is more tangible than the percentage itself. Reliable electricity can mean refrigeration, lighting, communication, internet access and less dependence on generators or other alternative energy sources.

Roads and Healthcare Also Improved

Transportation was another area where the report recorded progress.

Road construction and maintenance contributed to a 31.1% decline in deprivation related to access to land transportation routes.

Healthcare indicators improved as well. Deprivation related to prenatal care fell by 33%, reflecting better access to pregnancy monitoring and health services.

These types of improvements can be especially important in rural regions such as the Azuero Peninsula, where the distance between communities can make access to roads, electricity and public services particularly significant.

Bocas del Toro Records One of the Biggest Improvements

Some of the largest reductions occurred in areas that have historically experienced high levels of poverty.

Multidimensional poverty declined by 16 percentage points in the Emberá region, 9.9 points in Bocas del Toro and 7.9 points in Ngäbe Buglé.

Among Panama’s provinces, Bocas del Toro recorded the largest improvement.

The numbers are encouraging, but the report also shows that major differences remain between different parts of the country. Indigenous territories and some rural communities continue to experience considerably higher levels of deprivation than the national average.

Progress, but Work Remains

The latest results do not mean poverty has been eliminated or that progress has been equal across Panama.

What they do show is measurable improvement.

Fewer Panamanians are experiencing several forms of deprivation at the same time. Even among people who remained classified as multidimensionally poor, the average intensity of deprivation fell from 41.5% in 2022 to 40.2% in 2025.

Nearly 84,000 people moving out of multidimensional poverty in three years is a significant development. Behind that number are thousands of households gaining better access to electricity, transportation, healthcare, education and other basic services.

The challenge now is extending those improvements to the communities where poverty remains highest.

Article written: August 21, 2026