IMF Sees Panama GDP Up 4.5% This Year in Rebound from Copper Mine Closure

• Panama's economy is expected to grow this year as the impact from the closure of First Quantum Minerals' Cobre Panama copper mine fades, and non-mining sectors continue to grow, the International Monetary Fund's executive board said on Monday, August 25, 2025.
• Panama's economy is recovering after the Cobre Panama mine, one of the world's largest open-pit copper deposits, was closed in 2023 following protests from residents over tax contributions and its environmental impact.
• The IMF expects Panama's economy to grow 4.5% in 2025 and to keep growing 4% yearly through 2030. As a comparison, the Central American country's economy grew 2.9% in 2024. The IMF also noted that the country's economy is expected to continue its recovery; however, the outlook is subject to significant downside risks and a high degree of uncertainty. Additionally, a spending reduction plan approved by the cabinet, if fully implemented, could bring the government’s 2025 fiscal target within reach.
• Panama, one of the world's fastest-growing economies in the last decade, recorded a significant slowdown in gross domestic product growth in 2024 from the previous year's 7.4% expansion, as the copper mine closed and air transport declined.

(Source: Reuters)