IMF sees Panama GDP up 4.5% this year in rebound from copper mine closure

The International Monetary Fund forecast that Panama's economy would expand by 4.5%, signaling a recovery from the sharp growth deceleration caused by the 2023 closure of the Cobre Panamá mine. The mine had previously generated significant tax revenue, direct employment, and commercial activity across local supply chains. Despite the projected rebound, sovereign ratings agencies remained watchful due to fiscal imbalances, elevated borrowing expenses, and lingering legal liabilities linked to arbitration. The IMF report underscored the need for Panama to diversify revenue channels and maintain structural reforms.