JP Morgan believes the reopening of Cobre Panamá could represent 4% of GDP by 2027.
The financial institution considers that the return of mining operations could become one of the main drivers of economic growth, public finances, and investor confidence in Panama.
Source: El Panamá América
(Panama Business Economy News). Panama continues to strengthen its position as one of the economies with the best growth prospects in Latin America. This is reflected in a recent JP Morgan report, which incorporates the reopening of Cobre Panamá into its baseline scenario for the second half of 2027 and identifies it as one of the factors with the greatest potential to boost the national economy in the coming years.
The analysis is part of a broader assessment of the country's fiscal and economic outlook. In it, the institution highlights that Panama maintains favorable conditions for preserving its investment grade rating, supported by progress in fiscal consolidation, economic performance, and the strengthening of public revenues.
According to the report, the country is showing positive signs in fiscal matters. Non-Financial Public Sector revenues registered a year-on-year growth of 13.2% through April of this year, driven by higher tax collection and improvements in the performance of various state entities. At the same time, capital expenditures decreased compared to the same period of the previous year, contributing to the achievement of the fiscal targets set by the Government.
Added to this scenario is the performance of the Panama Canal, whose revenues grew 10% year-on-year, strengthening the country's fiscal position and consolidating its role as one of the main drivers of the national economy.
However, according to JP Morgan, the element with the greatest potential for economic transformation in the medium term is the reopening of Cobre Panamá. The firm projects that the mine could resume operations during the second half of 2027 and estimates that, once it reaches full operating capacity, it could represent around 4% of the country's Gross Domestic Product (GDP).
Beyond the mining activity itself, the report highlights the impact that a reopening would have on multiple economic variables. These include economic growth, export generation, investment attraction, and the strengthening of the country's external accounts.
The inclusion of Cobre Panamá in the baseline scenario of one of the world's leading financial institutions also sends a significant signal to international markets. In economic terms, it implies that global financial players consider it possible that Panama will move toward a decision that would allow it to recover one of the most significant productive projects of the last decade.
For investors, institutional stability, the capacity to generate sustained growth, and the existence of strategic projects continue to be determining factors when evaluating opportunities in a country. In this context, the reopening of the mine appears linked to a broader conversation about competitiveness, confidence, and economic development.
JP Morgan's projection adds to a growing debate about the opportunities that lie ahead for Panama to strengthen its growth and consolidate its position as a logistics, financial, and investment hub in the region. In this context, the potential reactivation of Cobre Panamá is not seen solely as a mining-related decision, but as a variable capable of influencing the country's economic performance in the coming years.
With an economy that maintains a positive outlook, increased tax revenues, and one of the most important logistics platforms on the continent, Panama continues to be among the markets attracting the attention of international investors and analysts. According to JP Morgan, the reopening of Cobre Panamá could become one of the main catalysts for this new phase of growth.