(Reuters) -Panama's economy is expected to grow this year as the impact from the closure in late 2023 of First Quantum Minerals' Cobre Panama copper mine fades, and non-mining sectors continue to grow, the International Monetary Fund's executive board said on Monday.
WHY IT IS IMPORTANT
Panama's economy is recovering after the Cobre Panama mine, one of the world's largest open-pit copper deposits, was shut in 2023 following protests from local residents over tax contributions and its environmental
impact.
BY THE NUMBERS
The IMF expects Panama's economy to grow 4.5% in 2025 and to keep growing 4% yearly through 2030.
As a comparison, the Central American country's economy grew 2.9% in 2024.
KEY QUOTES
"The economy is recovering from the impact of the Cobre Panama mine closure," the IMF said in a statement.
It added the country's economy "is expected to continue its recovery, but the outlook is subject to significant downside risks and a high degree of uncertainty."
The IMF also said a spending reduction plan approved by the cabinet, if fully implemented, could bring the government’s 2025 fiscal target within reach.
CONTEXT
The closure of Cobre Panama, which had contributed 1% to global copper production, impacted both Panama's and First Quantum's financial prospects.
Panama, one of the world's fastest-growing economies in the last decade, recorded a significant slowdown in gross domestic product growth in 2024 from the previous year's 7.4% expansion, as the copper mine closed and air transport declined.
(Reporting by Diego Ore, Natalia Siniawski and Paolo Laudani; Editing by Daina Beth Solomon, Aida Pelaez-Fernandez and Chris Reese)
