{"id":18567,"date":"2026-11-05T20:05:27","date_gmt":"2026-11-06T01:05:27","guid":{"rendered":"https:\/\/expat-times.com\/panama\/?p=18567"},"modified":"2026-11-05T20:05:34","modified_gmt":"2026-11-06T01:05:34","slug":"the-economy-feels-it-panama-exports-decline-22-1-as-copper-inventory-runs-dry","status":"publish","type":"post","link":"https:\/\/expat-times.com\/panama\/business-economy\/the-economy-feels-it-panama-exports-decline-22-1-as-copper-inventory-runs-dry\/","title":{"rendered":"The Economy Feels It! Panama Exports Decline 22.1 % as Copper Inventory Runs Dry"},"content":{"rendered":"\n

A new Inter-American Development Bank (IDB) report shows Panama exports decline<\/a> by 22.1 percent in the first quarter of 2026, a contraction severe enough to drag down Central America’s overall trade<\/a> performance while the rest of Latin America surged ahead. The drop stems from what economists call a statistical distortion tied to the shuttered Cobre Panam\u00e1<\/a> mine.<\/p>\n\n\n\n

The IDB’s Trade and Integration Monitor 2026 found that Latin American and Caribbean exports grew 19.5 percent in the first half of 2026. But Central America was the only subregion to lose momentum, with its external sales growth slipping from 11.0 percent in 2025 to 8.3 percent in early 2026, largely because of Panama’s collapse.<\/p>\n\n\n\n

\"copper
The mine stopped commercial operations in November 2023 after Panama’s Supreme Court declared the concession contract unconstitutional. By MiAmbiente.<\/figcaption><\/figure>\n\n\n\n

Panama Exports Decline<\/a> Tied to Copper Inventory Effect<\/h2>\n\n\n\n

The mine stopped commercial operations in November 2023 after Panama’s Supreme Court declared the concession contract unconstitutional. No copper concentrate has been produced since. But concentrate already stockpiled at the site remained available for shipment.<\/p>\n\n\n\n

In 2025, authorities authorized the export of that stored copper. The result was a temporary surge in Panama’s export values. By June 2025, goods exports including copper had risen 36.9 percent year over year. That inflated the comparison base for 2026. Once the inventory was exhausted, the year-over-year comparison collapsed into negative territory.<\/p>\n\n\n\n

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“Panama’s sales fell in the first part of 2026 due to a statistical effect: in 2025 the export of stored copper from the Cobre Panam\u00e1 mine<\/a> had been authorized, without commercial operations since November 2023, following the Supreme Court ruling that declared the law approving the concession contract unconstitutional, which raised the exported value and the comparison base” [Translated from Spanish]<\/p>\n<\/blockquote>\n\n\n\n

The Economic Commission for Latin America and the Caribbean (ECLAC) supports this assessment. Its October 2026 trade outlook projects Panama’s goods exports will fall 14 percent for the full year, following a 23 percent interannual drop in the first half. ECLAC identifies Panama as the most notable contraction case in the region.<\/p>\n\n\n\n