Panama's economic growth slows to 2.9% in 2024 after key mine closure

PANAMA CITY, March 19 (Reuters) - Panama's gross domestic product grew 2.9% in 2024, significantly slowing from the previous year's 7.4% expansion, as air transport declined and a major copper mine closed, official data showed on Wednesday.

In the last decade, Panama was one of the world's fastest-growing economies, but authorities had predicted a decline in growth, largely due to the closure of a copper mine operated by Canadian miner First Quantum FM.TO, following clashes over its tax contributions and environmental impacts.

"Air transport experienced a decrease, as did the exploitation of mines and quarries, due to the closure of the copper mine operations," according to a report from the National Institute of Statistics and Census.

Panama's previous government in late 2023 ordered First Quantum to shut the open-pit Cobre Panama mine after many took to the streets protesting over environmental concerns. The mine was one of the world's top sources of copper, accounting for 1% of global output.

The Central American country's economic growth in 2024 was mainly driven by sectors linked to international trade, such as the Panama Canal as toll revenue increased, and commercial activity in the Colon Free Zone, the report said.

Among the internal sectors that recorded a positive performance last year were transport activities, construction, real estate and business and financial services, it added.