Panama’s economy has surged with a 4.8 percent growth rate during the first quarter of 2026 compared to the same period last year. President José Raúl Mulino made the announcement on Thursday, June 18, citing data from the Panama National Institute of Statistics and Census. The president credited his administration’s economic policies for the rebound.
Speaking during his weekly press conference, Mulino highlighted that this performance places Panama among the five fastest-growing economies in Latin America. The regional average was doubled, he noted. This expansion comes from growth in logistics and transport services, tourism, wholesale and retail trade, and the construction industry. The president emphasized that after two years in office, these results stem from programs adopted by the Ministry of Economy and Finance.
“This growth in the statistics will begin to be noticed on the streets with more movement, more job generation and opportunities,” Mulino said. [Translated from Spanish] “Certainly, these have been two years of much organization, of arranging the nation’s finances and resources responsibly, and we are beginning to see the positive results.”
The administration’s economic plan ordered the economy in a serious and responsible manner, the president explained. This approach has ended the hardest phase of the economic program. Officials expect these results and benefits to become visible to the public during the second half of the year. The government is also monitoring fuel prices, with the president noting a downward trend this week after global price fluctuations.
Water Infrastructure Program Advances with 21 Projects
President Mulino emphasized that water distribution remains a top priority for his administration. The government is currently working on 21 simultaneous fronts across different regions of the country. Taboga Island now has potable water suitable for human consumption through a new modern plant that supplies both residents and businesses.
The National Institute of Aqueducts and Sewage Systems (Idaan) has completed 317 repairs in areas such as San Miguelito, Betania and Juan Díaz. These repairs are part of the Panama Without Leaks program, which reduces water loss and increases water pressure in homes. The president also announced approval for the expansion and modernization of the Roberto Reina water treatment plant in Chitré, with a budget of 22.5 million balboas.
“In a few months we will be able to give abundant water to western Panama, especially to Arraiján, with these advances we are making and other 21 works that are being developed to provide a solution to the suffering of thousands of Panamanians due to the lack of water,” Mulino added. [Translated from Spanish] The Howard water treatment plant in western Panama now has 200 workers advancing on water intake and electrical connection work.
Constitutional Process and Legislative Elections
President Mulino expressed his hope that his successor will be sworn in under a new National Constitution developed during his term. He stated that state reform is the most important element a new constitution should contain, arguing that the country’s legal-political system has collapsed. The constitutional literacy sessions led by Dr. Miguel Antonio Bernal will lead to a broad, democratic and inclusive constituent process next year.
The president also expressed support for inspections being conducted by Comptroller General Anel Flores on projects involving public funds. “The idea is that all projects flow, that the money is spent well and that there is control and surveillance,” Mulino said. [Translated from Spanish] “I believe that the times of the ‘refrigerated’ comptrollers, Mr. Flores has already broken them; he is on the street, investigating each one of the projects where public money is invested, so that they continue to be invested well.”
Regarding the upcoming election for a new president of the Legislative Assembly, Mulino confirmed he has held meetings with deputies from all factions. These meetings took place at the Palacio de las Garzas and were not secret. “As president of the republic, I met with the government caucus because I am interested in the future of the presidential election of the Assembly on July 1,” Mulino stated. [Translated from Spanish] He argued that next year will be crucial for advancing legislative initiatives the country needs.
The economic rebound aligns with broader trends in Panama economic growth, positioning the nation favorably within the region. Officials expect continued positive indicators as infrastructure projects and fiscal policies take full effect.