## Regional Income Disparities in Panama

_Selected Issues Papers, September 16, 2025_

## Source details

**Canonical URL:** [Regional Income Disparities in Panama](https://www.imf.org/en/publications/selected-issues-papers/issues/2025/09/16/regional-income-disparities-in-panama-570426)

## Other formats

- [Markdown version](/en/publications/selected-issues-papers/issues/2025/09/16/regional-income-disparities-in-panama-570426/index.md)
- [Structured JSON version](/en/publications/selected-issues-papers/issues/2025/09/16/regional-income-disparities-in-panama-570426/index.json)
- [Bundle manifest](/en/publications/selected-issues-papers/issues/2025/09/16/regional-income-disparities-in-panama-570426/bundle-manifest.json)

## Bibliographic details
- Authors: Mai Hakamada
- Published: September 16, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229026048.018

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### Summary findings
- Panama exhibits high income inequality driven largely by disparities between regions rather than within them.
- The Panama Canal corridor, including Panama City and Colón, concentrates economic activities with high labor productivity and incomes.
- Rural and indigenous provinces face structural constraints resulting in low productivity and poverty.

### Drivers and accounting decomposition
- Accounting decomposition shows regional income gaps stem mainly from labor productivity differences.
- Labor productivity differences are influenced by:
  - population density
  - sectoral composition
  - education
  - healthcare access
  - infrastructure
- These factors collectively underpin Panama’s pronounced regional income disparities.

### Regional contrasts
- Panama Canal corridor (Panama City and Colón):
  - Concentrated economic activities
  - High labor productivity
  - High incomes
- Rural and indigenous provinces:
  - Poor infrastructure
  - Limited education
  - High informality
  - Low productivity
  - High poverty

### Policy implications (identified constraints)
- Addressing infrastructure deficits, education gaps, healthcare access, and informality is central to reducing regional labor productivity gaps and overall income disparities.

*Source: Regional Income Disparities in Panama, September 16, 2025, Selected Issues Papers.*

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## Content in this bundle

- **Regional Income Disparities in Panama; IMF Selected Issues Paper No. 2025/125; July 9, 2025**
  - [Regional Income Disparities in Panama; IMF Selected Issues Paper No. 2025/125; July 9, 2025 (Markdown version)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025125.pdf.md){rel="alternate" type="text/markdown"}
  - [Regional Income Disparities in Panama; IMF Selected Issues Paper No. 2025/125; July 9, 2025 (PDF)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025125.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/09/16/regional-income-disparities-in-panama-570426_