World Bank: Panama GDP slid 18 percent in 2020

World Bank Panama GDP
Ships in the Panama Canal. Photo: Monkylabz/Shutterstock

According to World Bank estimates, the GDP drop in Panama last year reached an eye-watering 17.9-percent, the country’s worst yearly result on record, making it the worst performer in Central America. 

Only Venezuela fared worse last year, as its GDP fell 25 percent, amid a severe socio-economic collapse that only worsened during the pandemic.

Panama’s economy was disrupted by a slowdown in world trade between March and June 2020, which reduced traffic in the Panama Canal, a key source of revenue for the nation and accounting for 10 percent of its GDP.

For this year, the World Bank believes the country will grow 9.9 percent, which is set to be the highest growth rate in Latin America this year.