Panama started 2026 with several positive economic indicators, according to APEDE’s latest monthly executive economic report. The country’s GDP grew 4.8% in the first quarter, the Monthly Economic Activity Index, known as IMAE, rose 5.96% in April, and registered labor contracts increased 20.5% compared to the same period last year. APEDE

The headline is encouraging, but APEDE’s main point is more practical: Panama now needs to convert economic movement into more private investment, stable employment, and sustainable growth.

Growth in the first part of the year was supported by logistics, commerce, construction, tourism, and services. The Panama Canal, air transportation, and the Colon Free Zone also remained important drivers of national activity. These sectors matter because they are deeply connected to Panama’s role as a regional hub for trade, travel, and services.

The fiscal picture also showed improvement. APEDE reported that the deficit of the Non-Financial Public Sector declined from 2.20% to 1.46% of GDP between January and April 2026, while government revenue increased 13.2%. Still, the report warned that public debt, current spending, and lower public investment remain issues to watch.

The labor market offered another positive signal. More than 112,000 contracts were registered with MITRADEL, a 20.5% increase year over year. However, many of those contracts were fixed-term or project-based, meaning the broader challenge is still the creation of formal, stable, higher-quality jobs.

One of the more important warnings in the report relates to foreign direct investment. APEDE noted that FDI fell 63.1% in 2025 compared to the previous year, along with a sharp reduction in reinvested earnings. That suggests some companies may be holding back from expanding operations in Panama.

International conditions are also less comfortable than in recent years. Slower global growth, elevated interest rates, and energy market volatility could affect Panama’s momentum. In that environment, APEDE argues that internal factors such as fiscal stability, legal certainty, productivity, and investor confidence will matter even more.

The report also references an evaluation from J.P. Morgan, which sees Panama as having the conditions to maintain Moody’s investment grade rating, supported by fiscal consolidation, economic growth, and better Canal performance. The caution is that fiscal discipline must continue, and Panama should avoid relying too heavily on cuts to public investment.

What This Means for Residents, Expats, and Investors

For residents and expats, this report is a useful snapshot of the country’s direction. Panama is growing, but the quality of that growth matters. A stronger economy can support better services, more business activity, and stronger consumer confidence. But if employment remains too temporary or investment weakens, the benefits may not be felt evenly across the country.

For investors, the message is balanced. Panama still has important advantages: logistics, the Canal, tourism, services, dollarization, and a strategic location. At the same time, the numbers show that confidence cannot be taken for granted. The country needs more reinvestment, more private-sector expansion, and more long-term employment.

Property Market Angle

This is not only a real estate story, but it does touch the property market. Economic stability, job creation, infrastructure investment, and foreign investment all influence how people decide where to live, retire, open businesses, or purchase second homes.

Established lifestyle destinations such as Boquete and growing coastal communities like Playa Venao may continue to benefit from Panama’s broader appeal. However, buyers should avoid assuming that national growth automatically means every market will rise equally. Local infrastructure, access, services, title status, tourism demand, and community maturity still matter.

The positive takeaway is that Panama remains active and economically relevant. The more cautious takeaway is that the next stage of growth depends on confidence, investment, and stable employment.

For buyers, sellers, and investors looking at Panama real estate, Casa Solution can help you understand the local market beyond the headline numbers and compare opportunities across Panama’s most active lifestyle and investment areas.

This article was written on June 28, 2026.