Panama’s economy is expected to grow this year, as the country recovers from the closure of a major copper mine at the end of 2023, according to the International Monetary Fund (IMF). The country’s gross domestic product (GDP) is expected to grow 4.5% in 2025 and to continue to grow 4% each year through 2030.  

The nation’s non-mining sectors are continuing to grow, as the country reels from the closure of First Quantum Minerals’ Cobre Panama copper mine, one of the world’s largest open-pit copper deposits. The mine was shut down in 2023, according to Reuters, following local protests over tax contributions and environmental concerns. It was one of the largest copper suppliers in the world, contributing to 1% of global output. Following the mine’s closure, Panama’s GDP grew 2.9% in 2024, a big drop from the previous year’s 7.4% expansion, per Reuters.  

Despite the positive outlook, uncertainty persists. “Downside risks to the outlook include the loss of investment-grade status, delays in implementing the reform agenda, natural disasters and heightened global policy uncertainty,” per the IMF. “On the upside, successful implementation of the government’s ambitious reform package—including ongoing mine negotiations—could bolster the outlook.” 

Panama’s economy is inextricably linked to global trade, with growth tied closely to Panama Canal toll revenue and commercial activity in the Colón Free Zone, the largest free port in the Americas. An estimated 5% of all seaborne trade in the world passes through the Panama Canal, according to the New York Times.  Last year, GDP growth was driven by transport activities, construction, real estate and business and financial services sectors, per Reuters.  

The Panama Canal Authority recently announced plans to sell rights to two yet-to-be-built ports, per the Wall Street Journal, to keep any one group from gaining too much influence, with specific concerns towards Geneva-based Mediterranean Shipping Co. and China’s Cosco.  

The move aims to limit any country from exerting too much control over the port, Ricaurte Vásquez Morales, administrator of the Panama Canal, said “We need to boost container capacity and bring in more players for an equal playing field,” per the WSJ. 

The Canal is a point of contention between the United States and China, as U.S. President Donald Trump has accused Panama of allowing China to have an outsized influence over the waterway and threatened to retake control, according to NPR.   

Sales to Panama are largely with existing customers, according to FCIB’s Credit and Collections Survey, with most credit managers offering 31-60-day terms (43%), followed by 1-30-day terms (30%) and 61-90-day terms (27%). Customers are 10 days beyond terms on average, with most delays caused by central bank issues (60%), cash flow issues (60%) and billing disputes (60%). Most respondents found that delays are staying relatively the same, but 28% are seeing an increase. 

“Do your homework, know your true legal customer and family tree,” one respondent wrote. “Pay attention to the five Cs of credit especially with global uncertainty, fraud and be sure the account is not undercapitalized,” another respondent wrote.