Countries › Panama › Guide › 2. Macro and country context › Panama external sector: services surplus, goods deficit, FDI, the Colón Free Zone and remittances

Panama external sector: services surplus, goods deficit, FDI, the Colón Free Zone and remittances

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-29 · Status: Stable

Panama earns its foreign exchange mainly from services: Canal, ports, air transport, tourism and finance. Those services offset a large goods deficit. In 2025 the current account showed a deficit of B/.1,074.1 million (about 1.2 percent of GDP); in the first half of 2026 it turned to a B/.2,210.1 million surplus, as services earned B/.9,355.9 million. Inward FDI stock was B/.66,620.4 million at end 2024, led by the United States, Colombia and Barbados. Colón Free Zone re-exports rose 24.9 percent in the first half of 2026. Because the US dollar is legal tender at par with the balboa, there is no exchange rate to defend; the external debt figure includes the liabilities of banks and other private sectors, not only the State.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender; the Superintendencia de Bancos states that the official currency is the balboa, whose value is on a par with the United States dollar (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

Current account balance 2025 (preliminary)	-1074.1 USD millionINEC Balanza de Pagos Cuadro 2, as of 2025-12-31 · in force
Current account balance 2025 (own calculation on INEC GDP)	-1.2 % of GDPINEC Balanza de Pagos Cuadro 2 / PIB 2025 (E), as of 2025-12-31 · in force
Current account balance January to June 2026 (estimate)	2210.1 USD millionINEC Comentario Balanza de Pagos enero a junio 2026, as of 2026-06-30 · in force
Goods exports FOB 2025, including Colón Free Zone re-exports	15709.5 USD millionINEC Balanza de Pagos Cuadro 2, as of 2025-12-31 · in force
Goods imports FOB 2025	28202.8 USD millionINEC Balanza de Pagos Cuadro 2, as of 2025-12-31 · in force
Services credits 2025	21982.5 USD millionINEC Balanza de Pagos Cuadro 2, as of 2025-12-31 · in force
National goods exports FOB January to June 2026 (excluding free zones)	534.6 USD millionINEC Comentario Balanza de Pagos enero a junio 2026, as of 2026-06-30 · in force
Colón Free Zone re-exports January to June 2026	6785.6 USD millionINEC Comentario Balanza de Pagos enero a junio 2026, as of 2026-06-30 · in force
Inward FDI position, end 2024 (preliminary)	66620.4 USD millionINEC IED 2022 a 2024, Cuadro 1, as of 2024-12-31 · in force
FDI inflows 2024 (preliminary)	2454.2 USD millionINEC IED 2022 a 2024, Cuadro 1, as of 2024-12-31 · in force
FDI inflows January to June 2026 (estimate)	792.4 USD millionINEC Comentario Balanza de Pagos enero a junio 2026, as of 2026-06-30 · in force
United States share of inward FDI position, end 2024	18.2 %INEC IED 2022 a 2024, Cuadro 2, as of 2024-12-31 · in force
Argentine FDI position in Panama, end 2024	120.7 USD millionINEC IED 2022 a 2024, Cuadro 4, as of 2024-12-31 · in force
Remittances received January to June 2026	303.3 USD millionINEC Comentario Balanza de Pagos enero a junio 2026, as of 2026-06-30 · in force
Total external debt (all sectors), Q2 2026	162382.8 USD millionINEC Comentario Balanza de Pagos enero a junio 2026, as of 2026-06-30 · in force

The rule

1. INEC compiles Panama's balance of payments. In 2025 (preliminary) the current account deficit was B/.1,074.1 million: goods exports FOB of B/.15,709.5 million (including Colón Free Zone re-exports) against imports of B/.28,202.8 million, a services surplus of B/.16,231.6 million, a primary income deficit of B/.4,590.2 million and net current transfers of minus B/.222.2 million.
Example: B/.1,074.1 million deficit divided by 2025 nominal GDP of B/.90,462.6 million is about 1.2 percent. / About US$1.07 billion.INEC, Balanza de Pagos: años 2024 a 2025 y primer semestre 2026, Cuadro 2 (presentación analítica), Cuadro 2, lines 1 to 16, 2026-09-25 official text · verified 2026-10-29

2. In January to June 2026 (estimates) the current account was in surplus by B/.2,210.1 million: services B/.9,355.9 million (up 14.9 percent, led by transport and travel), goods minus B/.5,469.4 million, income minus B/.1,648.2 million and current transfers minus B/.28.2 million. National goods exports (excluding the Colón Free Zone and export processing zones) fell 22.1 percent to B/.534.6 million, partly because copper concentrate was exported in early 2025 but not in early 2026.INEC, Comentario Balanza de Pagos, enero a junio 2026, Section I, Cuenta corriente, 2026-09-25 official text · verified 2026-10-29

3. Colón Free Zone trade in January to June 2026: imports of B/.5,862.3 million (up 3.4 percent) and re-exports of B/.6,785.6 million (up 24.9 percent). International travelers entering Panama totalled 5,949,697 (up 13.9 percent), of whom 1,348,561 tourists, and traveler spending was B/.3,793.7 million (up 14.7 percent).
Example: Re-exports of B/.6,785.6 million in six months exceed national goods exports (B/.534.6 million) by more than 12 times. / About US$6.79 billion of re-exports in the half year.INEC, Comentario Balanza de Pagos, enero a junio 2026, Sections I.A and I.B, 2026-09-25 official text · verified 2026-10-29

4. Foreign direct investment: INEC reports an inward FDI position of B/.66,620.4 million at 31 December 2024 (preliminary) and 2024 inflows of B/.2,454.2 million. By sector, the stock was B/.9,919.4 million in general license banks, B/.3,328.8 million in international license banks, B/.8,589.6 million in Colón Free Zone companies and B/.44,782.6 million in other companies. The top origins were the United States (B/.12,124.9 million, 18.2 percent), Colombia (B/.11,622.9 million, 17.4 percent) and Barbados (B/.6,803.7 million, 10.2 percent). For January to June 2026, INEC's commentary reports FDI inflows of B/.792.4 million, of which B/.578.5 million reinvested earnings.INEC, Inversión Extranjera Directa en la República según sector, país de origen y actividad económica, años 2022 a 2024; INEC, Comentario Balanza de Pagos enero a junio 2026, Cuadros 1 to 3, 2025-12-01 official text · verified 2026-10-29

5. Argentina is a minor investor in Panama: INEC records an Argentine FDI position of B/.120.7 million at end 2024 and 2024 inflows of B/.24.9 million. Panama has no double tax treaty with Argentina; for the Argentine side of trade, FX and tax questions see The Argentine Thread guide.INEC, Inversión Extranjera Directa 2022 a 2024, Cuadros 4 and 5, Cuadro 4 and cuadro 5 (Argentina rows), 2025-12-01 official text · verified 2026-10-29

6. Remittances: in January to June 2026 Panama received B/.303.3 million (up 8.0 percent, mainly from the United States, Venezuela, the United Kingdom, Colombia and Spain) and sent B/.306.9 million (mainly to Colombia, Venezuela, Nicaragua, the United States and the Dominican Republic), so net remittances are roughly balanced.INEC, Comentario Balanza de Pagos, enero a junio 2026, Section I.D, Transferencias corrientes, 2026-09-25 official text · verified 2026-10-29

7. Total external debt of the Republic, covering general government, monetary authorities, banks and other sectors, was B/.162,382.8 million at the end of the second quarter of 2026, up 7.9 percent year on year. The figure is large because it includes the liabilities of the international banking center, not only public borrowing (see macro/public-finances-budget-and-debt for public debt).
Example: B/.162,382.8 million is about 1.8 times 2025 nominal GDP. / About US$162.4 billion.INEC, Comentario Balanza de Pagos, enero a junio 2026, Section II, Deuda externa, 2026-09-25 official text · verified 2026-10-29

Item	H1 2024 (P)	H1 2025 (P)	H1 2026 (E)
Current account	485.3	minus 263.6	2,210.1
Goods	minus 5,070.7	minus 6,062.9	minus 5,469.4
Services	7,531.3	8,144.7	9,355.9
Income	minus 1,922.7	minus 2,285.6	minus 1,648.2
Current transfers	minus 52.6	minus 59.9	minus 28.2

Current account, January to June 2024 to 2026 (INEC, millions of balboas)

Origin	Position (B/. million)	Share
United States	12,124.9	18.2%
Colombia	11,622.9	17.4%
Barbados	6,803.7	10.2%
Switzerland	5,542.0	8.3%
Spain	2,761.3	4.1%
Mexico	2,516.9	3.8%
United Kingdom	2,430.2	3.6%
Taiwan	2,399.1	3.6%
Brazil	2,365.4	3.6%
Canada	2,069.9	3.1%
Total	66,620.4	100%

Inward FDI position by top origin, 31 December 2024 (INEC, preliminary)

Worked example

Reading a regional hub's numbers. A distributor re-exporting from the Colón Free Zone is part of a flow worth B/.6,785.6 million in six months, more than 12 times Panama's own goods exports. Its sales count as re-exports in the balance of payments, not as national exports, and it operates under the free zone regime in trade/colon-free-zone.
Profit remittance check. A foreign owned company with B/.10,000,000 (US$10,000,000) of profits can reinvest or remit them freely in US dollars (see fx/repatriation-of-profits-and-capital); in the first half of 2026 reinvested earnings were B/.578.5 million of the B/.792.4 million FDI inflow INEC recorded, showing that most foreign investors retain earnings locally.

Step by step

1. Use INEC's quarterly balance of payments commentary for trends and the analytical presentation tables for annual totals; note that first half and annual tables can use different presentations.
2. For FDI by country and sector, use INEC's annual FDI publication (latest covers 2022 to 2024).
3. For trade rules, tariffs and free zones, go to the trade section: trade/importing-and-exporting, trade/colon-free-zone and trade/trade-agreements.
4. For Argentina related flows (exports, FX access, tax), use The Argentine Thread guide; Panama applies no FX controls on its side.

Common traps

Comparing FDI figures across INEC tables without checking the basis. The annual FDI publication, the analytical balance of payments table and the half year commentary are compiled on different presentations and do not always add up to the same totals.
Reading the goods deficit as a vulnerability on its own. Services (Canal, ports, aviation, tourism, finance) structurally offset it.
Treating total external debt as public debt. B/.162,382.8 million includes banks and other private sectors.
Applying exchange rate risk analysis built for other Latin American markets. The US dollar is legal tender at par with the balboa (Ley 84 de 1904), so external shocks show up in growth, credit and fiscal numbers rather than in the currency; see fx/dollarization-and-the-balboa.

Sources

← Panama public finances: the fiscal rule, the budget, public debt and credit ratingsThe Panama Canal and the economy: legal regime, results and payments to the Treasury →

Get rule changes weekly

Free. One email a week from The LatAm Thread.

One more step after you press the button: we take you to Substack, where your email is already filled in. Confirm there to start. No spam, unsubscribe anytime, we never share your address. By subscribing you agree to the privacy policy.