Panama Military Spending
Military expenditure as % of GDP MS.MIL.XPND.GD.ZS
Panama's military spending was 0.97% in 1999, ranked 28th globally. This represents a 2.4% increase from 1998. Data from World Bank, covering 1987–1999.
Overview
Panama's military spending stood at 0.97% in 1999, a rise of +0.02% from 1998. Panama ranked 28th globally.
Panama’s military spending as a share of GDP stood at 0.97% in 1999, aligning it with Lithuania and placing it just below Austria’s 0.98%, according to World Bank data. This marked a significant decline from its all-time peak of 2.11% in 1988, a period shaped by regional geopolitical tensions and the presence of U.S. military operations. The downward trend was consistent over the documented 13-year span, with spending nearly halving from 1.84% in 1987 to a historic low of 0.95% in 1998, one year before the latest recorded figure. Compared to peer nations like Japan at 0.93% and Lao PDR at 1.06%, Panama’s defense expenditure remained within a narrow, low-intensity band typical of countries prioritizing civilian governance and regional stability over military investment. The sustained reduction reflects Panama’s post-1990 demilitarization policy following the U.S. invasion and the formal abolition of its standing army. Absent new security threats or shifts in regional defense dynamics, Panama’s military spending is expected to remain constrained near current levels, with any notable increase likely contingent on evolving geopolitical pressures or changes in national security doctrine.
Data & projection
| Year | Military Spending | YoY change | Rank |
|---|---|---|---|
| 1999 | 0.97% | +0.02% | #28 |
| 1998 | 0.95% | −0.22% | #25 |
| 1997 | 1.17% | +0.08% | #36 |
| 1996 | 1.09% | −0.03% | #34 |
| 1995 | 1.12% | −0.08% | #34 |
| 1994 | 1.19% | −0.01% | #32 |
| 1993 | 1.20% | +0.12% | #31 |
| 1992 | 1.08% | −0.15% | #20 |
| 1991 | 1.23% | −0.03% | #21 |
| 1990 | 1.26% | −0.83% | #23 |
| 1989 | 2.08% | −0.03% | #45 |
| 1988 | 2.11% | +0.27% | #41 |
| 1987 | 1.84% | – | #35 |
Detected Pattern
Analysis
Panama matched the Export Boom Cycle pattern in 1994. Historically, 71% of countries showing this pattern (546 out of 768) saw military spending improve within 24 months. View full analysis →
Frequently Asked Questions
Panama's military spending was 0.97% in 1999. Ranked 28th globally. This represents a 2.4% increase from the previous year.
Panama's military spending peaked at 2.11% in 1988.
The lowest military spending in Panama was 0.95% in 1998.
Panama ranks 28th globally in military spending as of 1999.
The World Bank indicator code is MS.MIL.XPND.GD.ZS. Data sourced from World Bank.
The military spending of Panama in 1999 was 0.97%. This ranks 28th in the world.
Cite this page
@misc{historysaid_panama_military-spending,
title = {Panama Military Spending},
url = {https://historysaid.com/panama/military-spending/},
publisher = {HistorySaid},
year = {2026}
}