GDP per Capita · Data & Comparison
Panama GDP per Capita
Panama's GDP per capita: how did a canal economy reach $19,174?
Panama's GDP per capita in 2024 was $19,174 at nominal exchange rates, while the PPP-adjusted figure stood at $41,427. The gap between the two reflects the price level difference between Panama and the United States, the benchmark economy for PPP conversion. Nominal GDP reached $86.5 billion in 2024, up from $57.1 billion in 2020, a 51.6% increase over four years. GNI per capita, which tracks income received by residents rather than output produced, was $18,010 in 2024, $1,164 below GDP per capita. The long-run series shows nominal GDP per capita rising from $2,252 in 1980 to $19,174 in 2024, a multiple of 8.5. Growth was uneven: the 1980s added just 4.6% to nominal GDP per capita, the 1990s 64.2%, the 2000s 89.4%, and the 2010s 98.1%. The 2020s have added 44.0% in four years, despite a 17.8% contraction in 2020. This page sets out the current figures, the decade-by-decade record, the structural drivers behind Panama's income per person, and how the headline number compares with peers and what it omits.
What is GDP per capita (nominal)?
GDP per capita is a country's GDP divided by its midyear population. It is the most common shorthand for average income or output per person.
How it is measured. Nominal GDP in current US dollars divided by midyear population. Because it uses market exchange rates, it ignores price-level differences between countries and says nothing about how income is distributed.
How to read it. Use it to compare average economic output per person. A high value can reflect high productivity or a small population with large resource or financial income, and it is not the same as median household income.
Source: World Bank WDI. See our methodology.
Current GDP per capita: nominal and PPP
Nominal GDP per capita in 2024
Panama's nominal GDP per capita reached USD 19,174.07 in 2024, up from USD 13,313.48 in 2020, a rise of 44.0 per cent across the five-year window. The figure sits above the 2020s mean of USD 16,842.12 and marks the highest value in the series. Nominal GDP underpinning the ratio was USD 86.52 billion in 2024, against USD 57.06 billion in 2020, a 51.6 per cent increase in aggregate output over the same period.
The per capita figure divides that aggregate by population, so the 2024 result reflects both the expansion in total output and demographic growth. Nominal GDP per capita in 1980 was USD 2,252.14, meaning the 2024 level is roughly 8.5 times the 1980 value. The 2020s mean of USD 16,842.12 is itself 27.7 per cent above the 2010s mean of USD 13,189.38, indicating that the recent average exceeds the prior decade's typical level.
PPP GDP per capita in 2024
GDP per capita at purchasing power parity stood at USD 41,427.22 in 2024, more than double the nominal figure of USD 19,174.07. The PPP measure adjusts for relative price levels, so it expresses output in a common purchasing-power standard rather than at market exchange rates. The 2024 PPP value is 53.1 per cent above the 2020 level of USD 27,063.60 and above the 2020s mean of USD 35,132.16.
The gap between the two measures reflects the difference between domestic price levels in Panama and those in the reference economies used for the PPP conversion. The nominal-to-PPP ratio in 2024 is approximately 0.46, meaning the nominal figure is less than half the PPP figure. Both series rise across the 2020s, but the PPP series starts from a higher base: USD 27,063.60 in 2020 against USD 13,313.48 nominal.
Anchoring in GDP and GNI totals
GNI per capita was USD 18,010.00 in 2024, slightly below the nominal GDP per capita of USD 19,174.07. The 1,164-point difference between the two indicates net factor income flows out of the economy, consistent with Panama's role as a financial and logistics hub with substantial foreign participation. GNI per capita rose 37.8 per cent from USD 13,070.00 in 2020, a slower pace than the 44.0 per cent recorded for nominal GDP per capita over the same period.
Real GDP growth was 2.75 per cent in 2024, following a contraction of 17.82 per cent in 2020 and a rebound of 16.47 per cent in 2021. The 2020s mean growth rate of 3.92 per cent is below the 2010s mean of 6.16 per cent. The 2024 per capita levels therefore rest on a recovery path that has not returned to the average expansion rates of the preceding decade.
Comparison of the two measures
- Nominal GDP per capita 2024: USD 19,174.07; PPP: USD 41,427.22.
- Nominal growth 2020 to 2024: 44.0 per cent; PPP growth: 53.1 per cent.
- GNI per capita 2024: USD 18,010.00, below nominal GDP per capita.
- Aggregate GDP 2024: USD 86.52 billion, up 51.6 per cent from 2020.
The PPP measure exceeds the nominal measure by USD 22,253.15 in 2024, a differential that widened from USD 13,750.12 in 2020. Both series place Panama's 2024 per capita output well above the 2010s closing values of USD 16,508.94 nominal and USD 33,302.34 PPP.
Panama GDP per capita, nominal and PPP, latest year
| Measure | 2024 value | Unit |
|---|---|---|
| GDP per capita, nominal | 19,174 | USD |
| GDP per capita, PPP | 41,427 | International $ |
| GNI per capita, nominal | 18,010 | USD |
| GDP, nominal | 86,523,979,566 | USD |
The long arc since 1980: decade by decade
1980s: a low base and a lost decade
Panama entered the 1980s with nominal GDP per capita of USD 2,252 in 1980, rising only to USD 2,357 by 1989, a decade growth rate of 4.6 per cent. The mean across the ten years was USD 2,619, with a peak of USD 2,888. The PPP series told a similar story: USD 4,904 in 1980 to USD 6,168 in 1989, growth of 25.8 per cent. GDP growth averaged 1.6 per cent for the decade, dragged by a contraction of 13.4 per cent in the worst year, reflecting the debt crisis and political turbulence of the period.
1990s: recovery and opening
The 1990s marked a clear turning point. Nominal GDP per capita moved from USD 2,509 in 1990 to USD 4,119 in 1999, growth of 64.2 per cent, with a decade mean of USD 3,351. PPP per capita rose from USD 5,714 to USD 9,495, an increase of 66.2 per cent. GDP growth averaged 6.1 per cent across the ten years, the strongest decadal mean in the series. The economy benefited from trade liberalisation, the transfer of the canal area and a shift toward services, logistics and finance.
2000s: acceleration
Growth accelerated again in the 2000s. Nominal GDP per capita climbed from USD 4,119 in 2000 to USD 7,803 in 2009, an 89.4 per cent increase, with a mean of USD 5,369. PPP per capita rose from USD 9,834 to USD 17,339, growth of 76.3 per cent. Aggregate GDP expanded 124.3 per cent over the decade. Average GDP growth of 6.0 per cent was supported by the canal expansion programme, large public infrastructure works and foreign direct investment in logistics and construction.
2010s: the strongest decade
The 2010s delivered the largest proportional gain in the series. Nominal GDP per capita rose from USD 8,333 in 2010 to USD 16,509 in 2019, growth of 98.1 per cent, with a mean of USD 13,189. PPP per capita moved from USD 18,270 to USD 33,302, an 82.3 per cent increase. Aggregate GDP grew 129.7 per cent. Average GDP growth of 6.2 per cent was sustained by the expanded canal, which opened in 2016, and by mining and construction activity. The decade peak in nominal terms, USD 16,509, stood just below the 2024 level.
2020s: contraction and rebound
The 2020s opened with a sharp break. GDP fell 17.8 per cent in 2020, the deepest contraction in the series, and nominal GDP per capita dropped to USD 13,313 from USD 16,509 in 2019. PPP per capita fell to USD 27,064 from USD 33,302. The rebound was rapid: nominal GDP per capita reached USD 19,174 in 2024, growth of 44.0 per cent across the five years, and PPP per capita reached USD 41,427, growth of 53.1 per cent. GDP growth for 2024 was 2.7 per cent, below the 3.9 per cent mean for the period.
Comparing the two measures
- Nominal GDP per capita rose from USD 2,252 in 1980 to USD 19,174 in 2024, an increase of roughly 8.5 times.
- PPP GDP per capita rose from USD 4,904 to USD 41,427 over the same period, an increase of roughly 8.4 times.
- The PPP-to-nominal ratio widened from about 2.2 in 1980 to about 2.2 in 2024, indicating that price-level differences have remained broadly stable.
- GNI per capita reached USD 18,010 in 2024, about 94 per cent of nominal GDP per capita, consistent with a modest net factor income outflow.
Panama GDP per capita by decade, nominal USD
| Decade | First year value | Last year value | Growth (%) |
|---|---|---|---|
| 1980s | 2,252 | 2,357 | 4.6 |
| 1990s | 2,509 | 4,119 | 64.2 |
| 2000s | 4,119 | 7,803 | 89.4 |
| 2010s | 8,333 | 16,509 | 98.1 |
| 2020s | 13,313 | 19,174 | 44.0 |
What drives Panama's income per person
The Canal and the logistics complex
The Panama Canal is the anchor of the tradable services sector and a direct influence on income per person. Panama's GDP reached 86.5 billion USD in 2024, against 4.4 billion USD in 1980, and GDP per capita rose from 2,252 USD in 1980 to 19,174 USD in 2024. Canal tolls, bunkering, port handling and the associated insurance and legal services generate foreign-exchange earnings that are not tied to the size of the domestic labour force. This is why GDP per capita can rise faster than employment.
The Colón Free Zone
The Colón Free Zone is the second structural pillar. Re-exports, warehousing and distribution add value with relatively few workers, and the zone links Panama to regional supply chains. The 2000s decade illustrates the effect: GDP per capita rose 89.4 per cent between 2000 and 2009, from 4,119 USD to 7,803 USD, while GDP grew 124.3 per cent over the same period. The gap between the two growth rates reflects population growth and the capital-intensive nature of logistics and construction activity.
Dollarisation
Panama uses the US dollar as legal tender and issues no sovereign currency. Dollarisation removes exchange-rate risk in trade and investment, lowers transaction costs for the Canal and the free zone, and has historically kept inflation close to US levels. The cost is the loss of an independent monetary policy. When growth contracted by 17.8 per cent in 2020, adjustment had to come through fiscal and labour channels rather than the exchange rate. GDP per capita fell from 16,509 USD in 2019 to 13,313 USD in 2020, a drop of roughly 19 per cent.
Fiscal position and public investment
Public infrastructure spending has been a material driver. The 2010s recorded GDP per capita growth of 98.1 per cent, from 8,333 USD in 2010 to 16,509 USD in 2019, supported by metro, highway and Canal expansion works. GDP growth averaged 6.16 per cent across that decade. The 2020s show a slower profile: GDP per capita averaged 16,842 USD over 2020 to 2024, and GDP growth in 2024 was 2.75 per cent. Fiscal deficits and debt service now constrain the pace of new public capital formation.
Labour-market composition
Employment is concentrated in services, construction and commerce, with a large informal segment. Measured GDP per capita, at 19,174 USD in 2024, exceeds GNI per capita at 18,010 USD, a gap consistent with net factor income flows and the presence of foreign-owned firms in the logistics cluster. Purchasing-power parity GDP per capita was 41,427 USD in 2024, well above the nominal figure, reflecting lower domestic price levels for non-tradable services. The distribution of income across regions and sectors remains uneven, and the informal workforce limits the pass-through of aggregate growth to household earnings.
- Canal and logistics: tradable services with high output per worker.
- Colón Free Zone: re-export and distribution activity.
- Dollarisation: no exchange-rate buffer, low inflation, constrained adjustment.
- Fiscal position: infrastructure-led growth, now tighter.
- Labour market: services-heavy, with a significant informal share.
Panama GDP per capita and GNI per capita, 2024
| Indicator | 2024 value (USD) |
|---|---|
| GDP per capita | 19,174 |
| GNI per capita | 18,010 |
| Difference (GDP minus GNI) | 1,164 |
Peers and what the headline figure omits
Regional comparison
Panama's GDP per capita of USD 19,174 in 2024 places it above most Central American peers in nominal terms, although the ranking narrows once purchasing power is applied. The PPP measure of USD 41,427 for 2024 is roughly 2.2 times the nominal figure, reflecting a price level well below that of the United States. Costa Rica and the Dominican Republic have tracked similar upward trajectories since 2010, while Guatemala and Honduras remain at substantially lower levels. Panama's nominal figure is therefore a partial guide to relative living standards across the isthmus.
GNI per capita and the income gap
Gross national income per capita stood at USD 18,010 in 2024, some USD 1,164 below the GDP per capita figure of USD 19,174. The gap of roughly 6 per cent indicates that a portion of output generated inside Panama accrues to non-resident factors, consistent with an economy where foreign capital features heavily in logistics, finance and the canal-adjacent services cluster. The GNI series has risen from USD 13,070 in 2020 to USD 18,010 in 2024, a gain of 37.8 per cent, but it remains below the nominal GDP measure in every recent year.
Distribution and the averages problem
National averages conceal wide dispersion. Panama combines a high-income services corridor around the canal and Panama City with rural provinces where incomes and public service provision lag markedly. The 2020 contraction of 17.8 per cent in real GDP, the sharpest in the 2020s series, illustrates how quickly the aggregate can move when tourism, transport and construction stall. Recovery to 2.75 per cent growth in 2024 is modest against the decade means of 6.16 per cent in the 2010s and 6.02 per cent in the 2000s.
What the headline omits
- Price levels: the PPP conversion of USD 41,427 against USD 19,174 nominal shows that domestic purchasing power differs substantially from the dollar figure.
- Factor income: GNI per capita of USD 18,010 trails GDP per capita, so headline output overstates resident income.
- Volatility: the 2020 fall of 17.8 per cent and the 2024 growth rate of 2.75 per cent sit either side of the long-run mean, indicating sensitivity to external shocks.
- Composition: GDP growth of 51.6 per cent across the 2020s to 2024 has been concentrated in sectors that employ a minority of the labour force.
Cross-country comparison should therefore pair the nominal figure with PPP and GNI measures. Panama's 2024 GDP per capita of USD 19,174 and PPP value of USD 41,427 both exceed the 2019 nominal level of USD 16,509, but the GNI shortfall of USD 1,164 and the uneven provincial record qualify any claim that the average describes the typical resident.
Panama GDP per capita and GNI per capita, 2024
| Indicator | 2024 value (USD) |
|---|---|
| GDP per capita | 19,174 |
| GNI per capita | 18,010 |
| Difference (GDP minus GNI) | 1,164 |
Frequently asked questions
What is Panama's GDP per capita in current US dollars?
Panama's GDP per capita was USD 18,726 in 2023, up from USD 17,358 in 2022, according to World Bank national accounts data. The series is measured in current US dollars, so part of the 2023 increase reflects dollar-denominated price movements rather than volume growth alone. Panama's economy is dollarised, which removes exchange-rate conversion effects that complicate comparisons for most Latin American peers. The 2023 level is roughly 2.4 times the USD 7,800 recorded in 2010, a reflection of the construction and logistics expansion of the intervening decade. Revisions to national accounts and population estimates can shift the level by several hundred dollars between data vintages.
What is Panama's GDP per capita adjusted for purchasing power parity?
On a purchasing power parity basis, Panama's GDP per capita was about USD 39,300 in 2023, against a current-dollar figure of USD 18,726. The gap of more than USD 20,000 reflects the lower price level for non-traded goods and services in Panama relative to the United States. PPP measures are the appropriate basis for comparing living standards across countries, while current-dollar figures are used for cross-border financial flows and debt ratios. Panama's PPP level places it above the Latin American average but below Chile and Uruguay. PPP estimates carry wider margins of error than national-accounts levels because they depend on periodic price surveys.
How has Panama's GDP per capita changed over the past decade?
Panama's GDP per capita rose from USD 7,800 in 2010 to USD 18,726 in 2023 in current dollars, an increase of about 140 per cent over 13 years. Growth was interrupted in 2020, when the measure fell to USD 12,400 as the pandemic halted construction and tourism. The recovery was rapid: the level exceeded its 2019 value of USD 16,100 by 2022. In constant terms the trajectory is flatter than the current-dollar series suggests, because part of the nominal gain reflects US inflation given dollarisation. Per-capita growth has also slowed since 2015 as population growth outpaced the earlier boom years.
Why is Panama's GDP per capita high compared with other Central American countries?
Panama's GDP per capita of USD 18,726 in 2023 compares with roughly USD 5,700 in Guatemala and USD 2,700 in Honduras. The difference rests on three sectors: the Panama Canal, which generated about USD 3.4 billion in gross revenue in fiscal 2023; the Colón Free Zone, the largest free trade zone in the Americas; and a banking centre whose assets exceed twice national output. These activities are capital-intensive and generate relatively little direct employment, which is why the high per-capita average coexists with a Gini coefficient near 0.50. The services-based model also makes the aggregate sensitive to global shipping volumes and financial conditions.
Is Panama's GDP per capita growing or shrinking?
Panama's GDP per capita is growing, though more slowly than in the 2010-2015 period. Real GDP expanded 7.3 per cent in 2023, and with population growth near 1.5 per cent, per-capita output rose by roughly 5.5 per cent in volume terms. The current-dollar measure reached USD 18,726 in 2023 from USD 17,358 in 2022. Growth in 2024 slowed sharply, with annual GDP growth estimated at about 2.5 per cent, partly because of reduced Canal transits during the drought. Per-capita growth therefore decelerated toward 1 per cent in that year. The direction remains positive, but the margin over population growth has narrowed considerably.
How does Panama's GDP per capita compare with the Latin American average?
Panama's GDP per capita of USD 18,726 in 2023 is well above the Latin America and Caribbean average of roughly USD 10,300. Within the region it ranks behind Chile at about USD 17,000 in PPP-adjusted terms and Uruguay at about USD 22,500, but ahead of Mexico at USD 13,900 and Brazil at USD 10,300. The comparison is sensitive to the measure used: on a PPP basis Panama sits near USD 39,300, narrowing the gap with Chile. Panama's advantage rests on services exports rather than manufacturing, which distinguishes it from the larger regional economies. Regional averages are unweighted in most published series, so they are pulled upward by smaller high-income economies.