Year-on-Year Expansion of the Panamanian Service Economy Reaches Historic High
Panamanian exports continued to trend heavily toward services in 2025, as exports reached historic highs by total value. The Panamanian service economy has attracted attention not only because of its weight in the overall economy, but also due to its performance. During 2025, services exports outperformed the total and indicated Panama’s role as a platform for regional connectivity, logistics, and business services.
Data from Panama’s Ministry of Commerce and Industries (MICI) recorded a value of $1.48 billion in service exports between January and September of this year. This figure represents an annual increase of 9.2% and sets a new record, according to official statistics from Panama’s National Institute of Statistics and Census (INEC).MICI Data Shows Strong Quarterly Growth in Services
MICI published data compiled by its INTELCOM statistical arm
Data shows strong growth in Panama’s exports of services during the first three quarters of 2025, with particularly strong growth in Q3. Figures show that exports reached $5.08 billion during the third quarter, the highest of any quarter so far this year.
Total exports for the first half of 2025 added up to $9.8 billion, growing 8.4% from the first half of 2024 when service exports totaled $9.01 billion.
A monthly breakdown of INEC data also reveals a sustained growth trend in the Panamanian service economy going back several years. Service exports contracted abruptly in 2020 due to the COVID-19 pandemic, but began recovering in 2021. This recovery has picked up pace in subsequent years, with Panama exporting an ever-growing value of services that have become slightly more diversified.
Leading the Charge: Travel & Transport Services Lead Panama’s Export Economy
Panama leaned on its service sector once again to lead exports during the first three quarters of 2025, with international trade, travel, and logistics leading the way. Cumulative exports of transportation services from January to September reached $7.7 billion, followed by travel services at $4.9 billion.
As has been the case for years, Panama Canal-related services, along with port services and logistics, made up a large part of the country’s exportable services. Panama’s geographic location and existing infrastructure have long made it a natural crossroads for cargo entering or leaving the Americas by ship or plane. Meanwhile, tourism services rebounded as international tourism slowly returned to pre-pandemic levels, and Panama continues to be a regional air transit hub.
Panama has also seen growth in ancillary services related to its position as a hub for international travel, including financial services ($993.8 million), insurance and pension services ($407.3 million), telecommunications, computers, and information ($383.2 million), and other business services ($334.7 million).
Rise of “Modern Services” Adds Diversity to the Panamanian Service Economy
This year’s activity also highlights growth in the “financial services” category and growth in services related to information technologies. Both closely relate to the concept of “modern services,” a term used to refer to economic activities such as knowledge generation; intensive use of digital technologies; remote provision of services; and highly specialized services designed to meet the needs of international markets.
Panamanian authorities have identified modern services as key to reducing reliance on tourism and other traditional activities. Increasing the portfolio of services exports and promoting the growth of modern services industries would also help Panama climb the value chain and boost the average value-added of its service economy.
Services Sector Offers Promise for High-Value, Knowledge-Intensive Activities
A high-ranking MICI official commented on the performance of the services sector during a recent press conference, stating that Panama is working “with a strategy to attract investment and promote activities with higher value added that will generate quality employment.” He specifically called out progress made in exporting modern services and their internationalization.
This would allow Panama to play a role along the semiconductor value chain without having to directly participate in the manufacturing process. The country could then provide logistics services, specialized and complex services, maintenance, technical assistance, and other services with high barriers to entry that tend to have higher value added. MICI’s data shows that the economy is working toward this reality, with dynamic growth in these services year-on-year. Additionally, Panama’s services sector has continued trending positively since the pandemic, with 2025’s results “being consistent with what we have been seeing since the beginning of the recovery.”
Export Diversity Continued To Improve in 2025
Figures from INTELCOM’s dashboard for service exports paint a clear picture of both growth in total value and diversification of the services that Panama exports. Although sectors related to transportation and travel make up the lion’s share of services exports by value, sectors such as financial services, digital services, information services, and other business services have been slowly but surely gaining ground in the Panamanian service economy.
September Data Reinforces Services-Led Trend in Panama’s Export Economy
After nine months of data indicating strong momentum in Panama’s services sector, recent months have continued to paint Panama’s export economy as services-led. The Panamanian service economy appears to be gradually becoming more resilient, more diversified, and better able to cope with external shocks amid an upward trend in total value exported.
Focus on Adding Value and Participating in Global Production Networks
Overall, Panama appears to be shifting toward a services-led export economy that brings with it added-value activities related to the global production of goods. As Panama broadens the diversity of its exports and continues to support higher value-added activities, it will be better equipped to respond to external shocks, create better jobs for Panamanians, and attract smarter investment.