The construction industry in Panama is estimated to have recorded growth of 2.9% in 2025, supported by investment in transport infrastructure projects, commercial, sanitation, and energy sectors. According to the National Institute of Statistics and Census (INEC), the construction industry’s value-add grew by 2% in the first half of 2025, preceded by an annual growth of 6.4% in 2024. In October 2025, Panama signed a loan agreement valued at $350 million with the Inter-American Development Bank to finance its 2025 State Budget (January 1, 2025, to December 31, 2025) and strengthen the Social Security Fund’s pension system. This announcement followed the Panama’s ministerial cabinet approval of the government’s draft budget proposal for 2026 totaling $34.9 billion in July 2025. Minister of Economy and Finance reported that the non-financial public sector debt is estimated to fall to 3.5% of GDP in 2026, down from 4% in 2025 and 7.35% in 2024. Furthermore, in August 2025, the Panama Canal Authority presented the budget of Panama Canal for fiscal year 2026 to the Cabinet Council, amounting to $5.2 billion, covering the period from October 1, 2025, to September 30, 2026. The budget includes future investments with a focus on water sustainability through the Río Indio Lake project, management of the traditional and western watersheds, and the sustainable and competitive operation of the canal.
Over the remainder of the forecast period, the construction industry is expected to grow at an average annual rate of 5.2% from 2026 to 2029, supported by investments in energy projects, residential and transport infrastructure projects, coupled with governments target for at least 20% of national consumption to come from renewable sources such as solar and wind by 2030. The government also aims to increase the share of renewables in the electricity mix to 70% by 2050. In September 2025, the Panama Canal Authority (ACP) announced an ambitious investment plan for the next ten years, with the aim of strengthening its strategic role in global trade and ensuring its sustainability. The plan involves an estimated investment of $8 billion in strategic projects in four sectors: water availability; the construction of a pipeline for Liquefied Petroleum Gas (LPG); a road connecting both Atlantic and Pacific coasts, as well as the construction of terminals built on either coast. Construction of the dam will be started in 2027 and is scheduled to be completed by 2032. The energy corridor includes the construction of a 76km gas pipeline and two maritime terminals that will allow up to 2.5 million barrels of energy products to be transported per day, connecting the Atlantic and Pacific coasts. Additionally, in September 2025, government undertake the construction of the Port of Corozal, which is currently in Contracting phase. The project involves integration of logistics platform with transport infrastructures like road and rail, is scheduled to start construction in 2028.
Over the remainder of the forecast period, the construction industry is expected to grow at an average annual rate of 5.2% from 2026 to 2029, supported by investments in energy projects, residential and transport infrastructure projects, coupled with governments target for at least 20% of national consumption to come from renewable sources such as solar and wind by 2030. The government also aims to increase the share of renewables in the electricity mix to 70% by 2050. In September 2025, the Panama Canal Authority (ACP) announced an ambitious investment plan for the next ten years, with the aim of strengthening its strategic role in global trade and ensuring its sustainability. The plan involves an estimated investment of $8 billion in strategic projects in four sectors: water availability; the construction of a pipeline for Liquefied Petroleum Gas (LPG); a road connecting both Atlantic and Pacific coasts, as well as the construction of terminals built on either coast. Construction of the dam will be started in 2027 and is scheduled to be completed by 2032. The energy corridor includes the construction of a 76km gas pipeline and two maritime terminals that will allow up to 2.5 million barrels of energy products to be transported per day, connecting the Atlantic and Pacific coasts. Additionally, in September 2025, government undertake the construction of the Port of Corozal, which is currently in Contracting phase. The project involves integration of logistics platform with transport infrastructures like road and rail, is scheduled to start construction in 2028.
The Construction in Panama - Country Briefing (H2 2025) report provides detailed market analysis, information, and insights into Panama's construction industry, including:
- Panama's construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Panama's construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Report Scope
This report provides a comprehensive analysis of the construction industry in Panama. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Panama, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1. Executive Summary2. Construction Industry: At-a-Glance3. Latest news and developments4. Project analytics5. Construction Market Data6. Risk Profile
7. Appendix
List of Tables
List of Figures
