UBS projects Panama’s Gross Domestic Product will exceed 5% growth by 2026, largely driven by the Panama Canal and robust domestic consumption. The positive forecast acknowledges recent progress made by the Mulino administration in implementing key reforms, specifically regarding the Social Security Fund. Despite ongoing concerns regarding governance, UBS assesses that these risks remain manageable at present. This optimistic outlook suggests a strengthening economic trajectory for Panama in the coming years. The report highlights the canal’s continuing importance as a key economic driver. Increased internal consumption is also playing a significant role in this projected growth. Overall, the analysis paints a relatively favorable picture of Panama’s economic future.