Back to main site

Integrated SDG Insights

Panama

UNDP’s Integrated SDG Insights explore how to achieve the SDGs by 2030. So that no one is left behind.

How To Read This Report

‘SDG Insights’ playbooks transcend development “as usual,” and leverages data innovation, AI and systems analysis to chart credible pathways that help countries meet the 2030 Agenda.

SDG Moment This section provides an overview of a country's economic growth trajectory, with new insights on sustainability and inclusiveness of growth pathways.

SDG Trends & Priorities This section builds from the foundation of national SDG progress and uses machine learning to analyse national development ambition with an SDG lens.

SDG Interlinkages Combined, these insights are mapped against SDG interlinkages to define policy choices the accelerate SDG progress, tailored to national context.

Finance & StimulusThese policy choices are made against fiscal constraints and opportunities for stimulus mapped in this section to ensure choices translate to development impact and leave no one behind.

1. SDG Moment

While economic growth is a key element in achieving the SDGs, many countries are intent on moving beyond growth as a yardstick for progress. In the short run, growth enables the SDGs; but in the long run, the SDGs aim to transform the pattern of growth itself.

GDP Growth Pathways

People

Poverty: Percentage of the population under each threshold (PPP$ a day).

Data not available.

Planet

Carbon Intensity: CO2 emissions intensity of GDP (tCO2 per PPP $1,000).

Panama’s economy is in acceleration mode in 2023, though it is projected to transition to coping phase during 2024-2025. This pace of growth is characterized by being 47% higher, on average, than the global figure, but still below the country’s growth trajectory projected before the pandemic. Accordingly, the SDG policy space is somewhat restricted, and the focus is on mitigating the effects of the slowdown, especially on the most vulnerable households.

Read More

This economic expansion is projected to exert only a moderate impact on poverty reduction and brings to the fore the urgency to address key distributional challenges to accelerate progress. Moreover, Panama’s economic cycle comes at the expense of the environment as the country’s carbon emissions intensity of GDP is expected to increase at an annual rate of 1.8% due to fossil fuel usage.

3. SDG Interlinkages

Maps synergies and trade-offs of national priorities to the most relevant SDG targets to chart policy pathways with most potential to accelerate progress.

1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions

Although Panama´s economy has recuperated fast and growth projections look promising, not everyone is able to gain from that prosperity. Poverty and inequality remain as important challenges, and about 25% of the population live under the national poverty line, disproportionally impacting women, Indigenous people and Afro-descendants.

Investing in targeted poverty reduction programmes like Red de Oportunidades and the Plan Colmena could lead to a decrease in poverty (Target 1.2), while at the same time reducing inequality (Target 10.1).

Spending efficiently in poverty reduction could also lead to closing the gap on several targets (3.5, 5.3, 5.5 and 16.6), which are priorities and where Panama is lagging in their achievement.

2.3: By 2030 “double the agricultural productivity and incomes of small-scale food producers, in particular those of women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment.”

The country has made significant progress towards strengthening institutional and local capacities for the management of agricultural production systems, including through placing an important emphasis on family farming with a focus on gender, ethnicity and territory.

Investment in the provision of distribution channels and strengthening the value chain of agri-food products has the potential to contribute to poverty reduction, improve educational performance and expand livelihood generation networks for rural populations.

The adoption of measures linked to the agricultural sector makes it possible to promote, protect and develop productive schemes, such as those proposed in the State Agri-Food Policy to transform the economy of the agricultural sector and to incorporate it as an engine of territorial development.

3.3: By 2030, end the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases and combat hepatitis, water-borne diseases and other communicable diseases

After the COVID-19 pandemic, Panama has resumed institutional and financial strengthening of the instances related to the provision of universal quality basic services, incorporating a socio-cultural diversity approach and linking information systems for decision-making on the response.  

Improving the management and allocation of financial resources dedicated to the prevention and care of the HIV and tuberculosis epidemic has the potential to accelerate the implementation of the country's commitments and to improve the quality of life of people living with these scourges. Integrated and culturally sensitive institutional management can strengthen strategies associated with health services, especially those linked to signal monitoring and early diagnosis.

Improvement in the results of this indicator is linked to the achievement of Targets 4.7, 6.1 and 8.6, areas where the country must strengthen its work.

4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship

The increase in the use of technological tools, digitalization and innovation in education and employment, forces the private sector to actively participate in the construction of capacities in young people for incorporation into employment.

The establishment of insertion pathways resulting from the transformation of the education system and the vocational training subsystem, which incorporates scientific and technological development, can favour the timely integration of the youth workforce into development opportunities.

Development investments in a vocational training system are linked to progress on Targets 5.5 and 8.4, where the country must try to fulfil the SDGs. .

11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums

Panama must address the problem of timely access to decent housing from a multidimensional perspective and be sensitive to the diversity of variables identified in the housing deficit, especially those that allow the differentiated analysis between men and women.

The main constraints on access to housing are linked to insufficient income and the scarce supply of good quality housing at low cost, aspects in which Panama has, however, invested resources in recent years.

Investments in this target have the potential to contribute to those linked to poverty reduction, improved health conditions in vulnerable populations and access to water and sanitation for all.

16.6: Develop effective, accountable and transparent institutions at all levels

Panama has promoted the modernization of Panamanian public institutions through the implementation of results-oriented and evidence-based management approaches that strengthen the efficiency of public spending and promote sustainable and inclusive development, through articulated and transparent public policies.

The country must concentrate efforts in adapting public management practices, based on the involvement of citizens in the public policy management cycle through open government mechanisms, participatory territorial planning, and the strengthening of political governance.

15.1: By 2020, ensure the conservation, restoration and sustainableuse of terrestrial and inland freshwater ecosystems and their services.

By prioritizing Target 15.1 in its 2021-2025 National Development Plan, Ecuadorreaffirmed the significance of protecting and preserving terrestrial ecosystems andtheir biodiversity. This includes recognizing that the investment projects intendedto fulfil Target 15.1 will not only contribute to achieving the SDGs 13, 14 and 15, butwill also help restore ecosystems that underpin the availability and comprehensivemanagement of water resources (SDG 6) and promote their sustainable use (Target12.2). Additionally, it will also foster the generation of new energy from renewablesources (Target 7.2).

To this end, Ecuador seeks to strengthen the management of the National Systemof Protected Areas through its 2022-2032 Strategic Plan and the implementationof the National Forest Restoration Plan 2019-2030. These instruments serve as thetechnical, legal and financial foundation for executing local forest restorationprocesses with a landscape vision, with an overall goal of covering 30,000hectares through its projects. Considering that the proportion of national territoryunder conservation or environmental management, as of 2022, stands at 22.1%, itis necessary to mobilize additional financial resources from various sources andestablish robust governance (Target 17.3) to intensify the care of protected areas.This ensures the conservation of natural and cultural resources, genetic flows, theprovision of environmental services for the benefit of the population and thealignment of policies on the ground.

Futures Scenarios

SDG Push is a futures scenario based on 48 integrated accelerators in the areas of Governance, Social Protection, Green Economy and Digital Disruption. It uses national data to explore the impact on human development by 2030 and 2050 across key SDG indicators. It does this by using ‘International Futures,’ a systems model designed to explore interactions across development systems.

Poverty <$1.90 Per Day (Number of People)

Malnourished Children Under 5 (Number Of Children)

Malnourished Children Under 5 (Number Of Children)

4. Finance and Stimulus

Many countries are facing reduced fiscal space, high debt levels, rising interest rates and downgrades on credit ratings. Fiscal and financial constraints tend to slow or even reverse SDG progress.

Panama's gross government debt is projected at 54.3% of GDP in 2023 and thus is 14.5 percentage points (pp) below the emerging market and middle-income economies (EMMIE) group’s figure of 68.8%. With a projected 19.8% of GDP this year, Panama collects only about two-thirds of the average revenue of the EMMIE group at 26%. 

Show More

Panama’s public external debt servicing this year is projected to be as high as 17% of revenue compared to 12.3% for the EMMIE average. The country’s credit rating is in the ‘lower medium investment grade’ category and thus significantly above the EMMIE average.

SDG Stimulus

The UN Secretary General’s SDG Stimulus Plan lays out a blueprint for action within the existing financial architecture. It includes:

  • Providing liquidity to support recovery in the near term
  • Enhance debt relief for vulnerable countries.​
  • Expanding development financing by MDBs
  • Align financial flows with the SDGs and Paris Agreement, according to country-level priorities and needs, for example through the rollout of the UN Integrated National Financing Framework (INFFs).

Given the projected fiscal and financial constraints faced by

Panama

possible funding options for the investments derived from the identified interlinkages are as follows:

  • SDG aligned public sector budgeting
  • Debt for SDGs
  • Climate finance
  • Blended and public-private finance
  • SDG-aligned business environment and investment
  • Remittances, philanthropy and faith-based financing

Methodology & Data Sources

Click here to view the Methodological Note for the Integrated SDG Insights.

This report is the result of a global exercise carried out using artificial intelligence to identify SDG priorities based on 10 national government documents, together with SDG progress and SDG interlinkage analysis. The implementation and monitoring of the 2030 Agenda in Argentina should be consulted in the Country Reports and National Voluntary Reports.

SDG Moment

Methodology
Assesses challenges and opportunities in national growth trajectories with insights on environmental sustainability and inclusiveness.

Data Sources
Future trajectories to 2025 are based on IMF-WEO GDP projections, distributions of per capita income or consumption from the World Bank, and CO2 emissions from the Global Carbon Budget 2022 and EDGAR (JRC and IEA).​

Trends & Priorities

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Interlinkages

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
The exercise globally considered a total of 454 documents published from 2015 to August 2022. (Miola et al., 2019 updated in 2021-2022)​

Finance & Stimulus

Methodology
Provides insight into indicators of fiscal and financial stress with options (INFF) for stimulus and other means to accelerate progress.

Data Sources
Most recent resource data from UNU-WIDER GRD (between 2018 and 2021), debt and revenue from IMF WEO (between 2020 and forecasts for 2023), external debt from IDS (2023), yields from Haver Analytics (8 June 2023), credit ratings from S&P, Moodys and FITCH (2023), and DSA ratings from World Bank/IMF (31 May 2023).