In brief:
₿- Panama is forecast to be Latin America’s second-fastest-growing economy in 2025, driven by the Panama Canal, logistics, and a strong transportation sector.
₿- New proposals link Bitcoin with the Panama Canal and public payments in Panama City, positioning the country as a rising global crypto hub.
The Panama economy growth 2025 forecast highlights the country as one of the fastest-growing in Latin America. According to the Economic Commission for Latin America and the Caribbean (ECLAC), Panama is expected to expand by 4.2% this year, surpassing larger economies such as Brazil, Mexico, Chile, and Colombia. Only Argentina, with a projected 5% increase, is expected to outpace Panama in the region.
Regional forecast shows sluggish performance
While regional growth remains modest, with ECLAC projecting Latin America’s economy to expand just 2.2%–2.3% in 2025, Panama stands out.
The Central American nation is positioned ahead of Guatemala at 3.6% and Costa Rica at 3.5%, making it the region’s leader. Other strong performers include Paraguay with 4% and the Dominican Republic with 3.7%. On the other hand, Mexico is expected to see just 0.3% growth, while Cuba and Haiti face contractions of -1.5% and -2.3% respectively.
Panama Canal and transportation drive economic growth
The Panama economic forecast reflects resilience thanks to the nation’s role as a global logistics hub. In the first quarter of 2025, Panama’s economy expanded by 5.2%, according to the National Institute of Statistics and Census (INEC). The transportation sector recorded a 26.2% surge, largely fueled by the Panama Canal, which posted a 43.6% rise in toll revenue. Increased container movement at ports and higher public transport use added to the strong results.
At the same time, the Panama Canal is attracting global attention with bold new proposals linking trade and cryptocurrency. Following the Bitcoin 2025 Conference in Las Vegas, Panama City Mayor Mayer Mizrachi suggested giving ships priority access to the canal if they pay tolls in Bitcoin. With the canal handling nearly 5% of worldwide maritime trade, this idea could reshape global logistics while positioning Panama as a leading Bitcoin-friendly hub.
The capital has already embraced crypto payments for taxes and services, with discussions of establishing a Bitcoin reserve fund at the city level. Together, these initiatives place the canal and Panama City at the centre of both economic and digital innovation.
Business outlook remains optimistic despite challenges
The Ministry of Economy and Finance (MEF) projects annual growth of 4% for 2025, while business associations predict up to 5%. Regardless of the final outcome, Panama is expected to remain among the fastest-growing economies in Latin America.
However, ECLAC warns that challenges persist across the region, including low investment, rising debt, protectionist trade policies, and weak external demand. For Panama, sustaining its growth momentum will depend on infrastructure development, stable trade flows, and continued strength in logistics.
Panama economy outlook shines in 2025
Despite Latin America’s period of low growth, Panama has become a bright spot in the region. Its strategic position, global trade influence, and dynamic transportation sector position the Panama economy growth 2025 forecast as one of the most promising stories in Latin America.
The nation is not only strengthening its role as a logistics powerhouse but also exploring financial innovation through Bitcoin payments for canal tolls and public services in Panama City. By combining traditional trade advantages with forward-looking digital strategies, Panama is carving out a unique position as both an economic leader and a rising crypto hub, setting the stage for long-term growth and global recognition.
Stay informed,
Rodcas Consulting Group