Panama’s economy posted a robust 5.2% growth in the first quarter of 2025, a marked rebound from the sluggish 1.7% rise in the same period last year. This upswing, confirmed by the National Institute of Statistics and Census (INEC), reflects a surge in activity across several key sectors: transportation, commerce, and public infrastructure.
This performance is a promising signal for real estate investors and expats seeking stable, growth-oriented destinations. With GDP reaching $21.5 billion at constant 2018 prices – and $22.9 billion in nominal terms – the country is showing renewed economic vigor that could stimulate both housing demand and property development in targeted regions.
Transportation Fuels the Surge
The standout performer was the transport sector, which expanded by an impressive 26.2%. A major contributor was the Panama Canal, where toll revenues soared 43.6%, recovering from last year’s drought-induced slowdown. This upswing was complemented by a 3% rise in container movement at national ports and growing urban mobility – MiBus ridership increased 5.1%, and the Metro de Panamá saw a 0.6% uptick in usage.
For investors considering opportunities in Panama City or the nearby Pacific Beaches, the efficient movement of goods and people makes these areas more accessible and appealing for both commercial and residential real estate ventures.
Retail, Autos, and Public Projects Drive Broader Growth
The commerce sector rose 2.9%, led by a 5.6% boost in retail sales and a notable 14.1% increase in new vehicle purchases. Meanwhile, the construction industry posted a modest 1.8% rise. While private sector projects remained sluggish, public investments in major infrastructure – including the Line 3 Metro extension and the fourth bridge over the Canal – increased by 20.7%.
This targeted public spending could translate into rising property values near large-scale infrastructure projects, especially along future transit corridors. Areas like Vista Mar and Panama Pacifico are worth watching for their long-term potential.
A Stronger Outlook for External Trade
Panama’s export sector also posted strong gains, with volumes of bananas (+50.7%), fresh fish (+23.6%), and shrimp (+45.7%) all on the rise. This suggests continued strength in agriculture and fisheries, which underpin property markets in rural and coastal regions like Cambutal and Torio, where foreign buyers often look for farmland, eco-lodges, and surf properties.
What This Means for Real Estate
This 5.2% GDP growth points to broader economic resilience, which generally supports buyer confidence and long-term appreciation in the real estate sector. While private construction is still recovering, government infrastructure investments are setting the stage for future development. Investors eyeing mid- to long-term gains may find now a strategic time to enter emerging markets or revisit paused projects.
However, not all sectors have returned to full steam. Private construction remains cautious, though a recent policy reversal on interest rate subsidies is expected to re-stimulate residential building in the months ahead.
Final Thoughts
While Panama’s economic growth still faces uncertainties – including the impacts of April-June pension reform protests – the first-quarter results show momentum in key sectors that matter most for real estate: infrastructure, mobility, and commerce.
For expats and investors seeking opportunities in a fast-recovering economy with strong logistics and growing consumer demand, Panama remains one of the top contenders in the region.
Let Casa Solution Help You Explore Opportunities
Whether you’re considering an investment property, second home, or a strategic development project in Panama, Casa Solution is your trusted local partner. Reach out to us for expert guidance on where the next real estate opportunities are emerging.
Written on: June 19, 2025
