IMF Staff Country Reports

Following a strong rebound from the COVID-19 slump, GDP growth
slowed from 7.3 percent in 2023 to 2.9 percent in 2024, mainly due to the closure of the
Cobre Panamá copper mine. However, spillovers to the rest of the economy appear to
have been limited and non-mining GDP growth accelerated. The Panama Canal returned
to full capacity in September 2024. Inflation declined sharply from its mid-2022 peak
to -0.2 percent year-on-year at end-2024. The 2024 external position is assessed to be
broadly in line with fundamentals, and the banking system remains sound,
well-capitalized, and liquid.