Panama: 2025 Article IV Consultation-Press Release; Staff Report
This article is a summary of reporting by International Monetary Fund. Originally published August 25, 2025.
The IMF's comprehensive assessment highlights that Panama's economy is rebounding from the closure of the Cobre Panamá mine, projecting GDP growth to accelerate from 2.9% in 2024 to 4.5% in 2025. However, fiscal deterioration in 2024 pushed the deficit to 7.4% of GDP and public debt to 57.6%, leaving the sovereign vulnerable to losing its investment-grade status. The report notes that Moody's changed its Baa3 rating outlook to negative in December 2024, while S&P holds a BBB- rating with a stable outlook.
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The IMF reported that Panama's economic growth is poised to rebound to 4.5% in 2025, while warning of significant fiscal challenges and credit rating risks.
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