ECLAC: Panama Canal Economy Still the Engine as Growth Seen at 4.4%
The UN economic commission projects Panama will grow 4.4% in 2026 and 4.6% in 2027, roughly double the Latin American average, with the canal carrying the pace as rerouted shipping lifts logistics, trade, tourism and finance. It warns of El Niño droughts, an end to Middle East rerouting and stubborn unemployment. The post ECLAC: Panama Canal Economy Still the Engine as Growth Seen at 4.4%…
ECLAC projects Panama's economy to grow by 4.4% in 2026 and 4.6% in 2027, nearly double the average growth rate of Latin America. The key driver behind this growth is the Panama Canal economy, which is seeing a surge in transit demand due to rerouted commercial and energy routes caused by the Middle East conflict. Each additional ship that crosses the canal generates a multiplier effect on logistics, wholesale and retail trade, free zones, tourism, and financial services.
While the forecast is more conservative than the government's own projections, ECLAC's assessment confirms Panama's historical pattern of outpacing the regional average in terms of sustained growth. However, the commission warns that relying on a single asset exposes the country to risks such as droughts, the resolution of the Middle East conflict, and slowing global trade.
To capitalize on the nearshoring wave and climb the value chain, Panama should focus on converting interest into employment, promoting social mobility, and diversifying its economy.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
