The construction industry in Panama is expected to grow by 5% in real terms in 2026, supported by rising investments in transport and energy sector projects, coupled with funding from major international funding institutions, such as the World Bank and the Inter-American Development Bank (IDB). According to the National Institute of Statistics and Census (INEC), Panama’s construction industry’s value-add grew by 2.7% in 2025, preceded by an annual growth of 4.6% in 2024. In April 2026, a government agency responsible for the management, operation, and maintenance of the Panama Canal, the Panama Canal Authority (ACP) has awarded design and construction contracts for two new roads in the Rio Indio basin, which involves the construction of two roads totalling 15.1km long. The two sections include a 9.5km road between Las Claras Abajo and Las Marías, and another 5.6km road between Piedrota and Santa Rosa. Moreover, the World Bank Group also approved a $500 million financial package for the Republic of Panama in December 2025, which is aimed at strengthening country’s fiscal sustainability, optimizing debt management and mobilising private investment across various sectors. Additionally, the financing facility is also expected to enhance investor confidence in the country’s economic outlook, boost investment and improve public financial management.
Over the forecast period, Panama’s construction industry is expected to register an average annual growth of 5.3% between 2027 and 2030, supported by public and private sector investments in road transport, port infrastructure, liquified natural gas (LPG) pipeline and renewable energy projects. Among the recent developments, in March 2026, the ACP announced its plan to award concessions in June 2027 for the construction of two new port terminals and an interoceanic gas pipeline. The 76km long gas pipeline is estimated to cost between $4 billion and $8 billion and is expected to be completed in 2031, upon which, it will have a transfer capacity of up to 397,500 cubic meters per day of gas. Meanwhile construction work on the port terminals, which are planned to be developed on the Pacific coast (Corozal) and the other on the Atlantic coast (Telfers Island) is expected to be completed between 2029 and 2030. The estimated cost of the port terminals is $2.6 billion and will play a key role in the trade of gas from the Gulf of Mexico to Northeast Asia.
Over the forecast period, Panama’s construction industry is expected to register an average annual growth of 5.3% between 2027 and 2030, supported by public and private sector investments in road transport, port infrastructure, liquified natural gas (LPG) pipeline and renewable energy projects. Among the recent developments, in March 2026, the ACP announced its plan to award concessions in June 2027 for the construction of two new port terminals and an interoceanic gas pipeline. The 76km long gas pipeline is estimated to cost between $4 billion and $8 billion and is expected to be completed in 2031, upon which, it will have a transfer capacity of up to 397,500 cubic meters per day of gas. Meanwhile construction work on the port terminals, which are planned to be developed on the Pacific coast (Corozal) and the other on the Atlantic coast (Telfers Island) is expected to be completed between 2029 and 2030. The estimated cost of the port terminals is $2.6 billion and will play a key role in the trade of gas from the Gulf of Mexico to Northeast Asia.
The Construction in Panama - Country Briefing (H1 2026) 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.
Scope
This report provides a comprehensive analysis of the construction industry in Panama. It provides:
- Historical (2021-2025) and forecast (2026-2030) 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
