PANAMA CITY, Panama – The Consumer Confidence Index (ICC) in Panama registered a slight increase of 9 points but remains mired in pessimistic territory at 79 points, according to a September 2025 survey released by The Marketing Group and the Panamanian Chamber of Commerce, Industries, and Agriculture (CCIAP). The persistently low figure reveals deep-seated public anxiety about the nation’s economic future, driven by high unemployment and widespread informal labor.
The survey, a key barometer of household economic sentiment, highlights a stark disconnect between macroeconomic growth indicators and the daily financial realities of most Panamanians. Despite the minor uptick, the index remains far below the 100-point equilibrium threshold, a level it has not surpassed in recent measurements, indicating that a majority of consumers hold a negative outlook.
“The high levels of distrust expressed by Panamanian consumers reflect an economic situation marked by high levels of unemployment and informality, which translates into a low level of consumption,” said Manuel Ferreira, Director of the Center for Economic Studies at the CCIAP [Translated from Spanish].
Employment Prospects Worsen as Savings Remain Tight
Delving into specific components of the index reveals the roots of public concern. When questioned about job opportunities over the next 12 months, the relevant ICC sub-index fell to 88 points, a 4-point drop from the June 2025 measurement. This decline is underscored by a stark statistic: 51% of respondents said they see no or very few possibilities of securing employment within the next year.
Regarding financial resilience, the index measuring the capacity to save money in the next 12 months saw a 4-point improvement to 73 points. However, this sub-index remains the lowest of all categories surveyed, reflecting the extremely narrow financial margin most Panamanian households have for building savings. In a more positive note, perceptions of respondents’ own household economic situations improved by 11 points, though this was insufficient to lift the sub-index out of pessimistic territory, where it settled at 82 points.
A Two-Tiered Economy: International Services Boom, Domestic Sector Lags
Manuel Ferreira provided critical context for the survey results, explaining that Panama is currently experiencing a two-speed economy. He noted that while the Panamanian economy continues to grow at a good pace, this growth is primarily benefiting sectors linked to international markets.
“This growth is benefiting activities linked to international markets such as the Canal, logistics services, and tourism, while the low level of consumption is affecting those activities linked to the domestic economy such as the agricultural sector, manufacturing industry, and retail trade,” Ferreira emphasized [Translated from Spanish].
This divergence creates a situation where headline economic growth figures mask significant weakness within the local, consumer-driven economy. The low consumer confidence directly impacts small and medium-sized enterprises and domestic producers, creating a cycle where economic uncertainty suppresses spending, which in turn further weakens the domestic sector.
Major Public Investments Offer Future Hope, Not Immediate Relief
The analysis points to several major public investment projects that could eventually improve the labor market and local economic performance. These include the $11 billion in investments contemplated in the draft General State Budget for 2026, the start of construction on the Río Indio reservoir, other infrastructure projects by the Panama Canal Authority, and the beginning of the first phase of the Panama-David-Border train.
However, Ferreira stressed that these projects are not seen by the public as solutions to current economic pressures. He indicated that these works will begin to generate significant employment likely by mid-2026 or early 2027, creating a lag that sustains consumer pessimism.
“The Panamanian mostly has a short-term view, they understand that these projects are positive, but they consider them a bet on the future and that they will not impact their current situation, which is why they maintain a level of distrust,” Ferreira concluded [Translated from Spanish].
The survey results present a significant challenge for policymakers: how to bridge the gap between long-term national infrastructure development and the immediate need to boost employment, increase formalization, and restore confidence in the domestic economy. The data suggests that without more immediate interventions, consumer sentiment is likely to remain subdued despite the government’s ambitious investment plans.