Panama's economic growth slows to 2.9% in 2024 after key mine closure

Panama experienced a steep drop in national GDP growth to 2.9% in 2024, down substantially from 7.4% in 2023, primarily driven by the closure of the Cobre Panamá copper mine. Copper exports from the mine were previously the nation's second-largest source of export earnings. The loss of First Quantum's domestic spending, which supported tens of thousands of jobs and local suppliers, severely hindered broad economic momentum. The sharp slowdown also contributed to sovereign credit rating downgrades, raising borrowing costs across the dollarized economy.