Strong growth through May, Canal progress, and complex mining talks

PANAMA - Report 30 Jul 2026 by Marco Fernandez and Jhonatan Astudillo

Economic activity continued to exceed expectations through May (+5.2%). Growth became broad-based as commerce, manufacturing, tourism, construction, and logistics contributed to the expansion. External demand remained the principal driver, supported by strong Canal activity, tourism, and the Colón Free Zone, while domestic consumption remained resilient despite softer business credit. Inflation moderated to 2.0% in June after several months of acceleration linked to higher international fuel prices.

The government appears to be moving away from the idea of a wholly state-owned mining company toward a public-private ownership structure in which the state would retain a controlling stake while First Quantum Minerals may remain involved as a strategic partner. Public opinion continues to be the Administration's greatest constraint in this regard.

The ACP continued to strengthen both its operational and financial position and also continued to advance on key investment projects. Attention will now shift to the debate on the 2027 National Budget (US$35.11 B, 0.6% greater than 2026).

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