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Panama Rule of Law

Rule of Law  RL.EST

Panama's rule of law was -0.44 in 2025, ranked 133rd globally. This represents a 28.2% decrease from 2024. Data from World Bank WGI, covering 1996–2025.

-0.44 −0.10 (-28.2%)
Year 2025 Rank #133 Global Peak 0.03 (2016) Source World Bank WGI

Panama Rule of Law (1996–2025)

Overview

Panama's rule of law stood at -0.44 in 2025, a decline of +0.10 from 2023. Based on recent trends, this figure is projected to reach -0.44 by 2025. Panama ranked 133rd globally.

Panama's Rule of Law indicator, as measured by the World Bank's Worldwide Governance Indicators, has exhibited a downward trajectory over the past 26 years, with a notable decline in recent years. The country's all-time low of -0.44 in 2025 marks a significant regression from its 2016 peak of 0.03, indicating a deterioration in the legal system's ability to enforce contracts, protect property rights, and limit crime. This decline is even more pronounced when compared to peer countries, with Panama narrowly trailing Argentina, which shares a similar ranking of -0.44. The downward trend is concerning, as a weak rule of law can undermine economic growth and stability. To reverse this trend, Panama would need to implement policies aimed at strengthening its judiciary, improving law enforcement, and enhancing transparency and accountability in government and business.

Data & projection

Year Rule of Law YoY change Rank
2026* trend -0.48 - -
2025* trend -0.44 - -
2025 -0.44 −0.10 #133
2023 -0.35 +0.01 #122
2022 -0.36 −0.09 #122
2021 -0.27 +0.02 #114
2020 -0.28 −0.09 #114
2019 -0.19 −0.03 #105
2018 -0.16 −0.17 #100
2017 0.01 −0.03 #94
2016 0.03 +0.17 #90
2015 -0.14 −0.08 #93
2014 -0.06 +0.19 #85
2013 -0.25 −0.03 #106
2012 -0.22 −0.25 #102
2011 0.03 +0.11 #87
2010 -0.08 +0.02 #96
Show all years (1996-2025)
* Linear trend extrapolation

Detected Pattern

Export Boom Cycle
Current account surplus with strong export growth (>15% YoY), reserve accumulation, and moderate GDP growth. Typical of commodity exporters during price surges.
Reserves YoY +17.9% GDP growth 2.9% C/A balance 0.2%
Occurred 768 times, 546 successful
Reserves YoY
+25.6%
GDP growth
4.0%
C/A balance
14.5%
Reserves YoY
+14.6%
GDP growth
3.7%
C/A balance
2.9%
Reserves YoY
+12.8%
GDP growth
43.8%
C/A balance
16.4%
Reserves YoY
+12.6%
GDP growth
6.0%
C/A balance
0.5%
Reserves YoY
+38.3%
GDP growth
5.0%
C/A balance
1.2%
Reserves YoY
+18.0%
GDP growth
2.9%
C/A balance
3.9%

Analysis

Panama matched the Export Boom Cycle pattern in 1994. Historically, 71% of countries showing this pattern (546 out of 768) saw rule of law improve within 24 months. View full analysis →

Frequently Asked Questions

What is Panama's rule of law?▾

Panama's rule of law was -0.44 in 2025. Ranked 133rd globally. This represents a 28.2% decrease from the previous year.

What was the highest rule of law in Panama?▾

Panama's rule of law peaked at 0.03 in 2016.

What was the lowest rule of law in Panama?▾

The lowest rule of law in Panama was -0.44 in 2025.

How does Panama rank in rule of law?▾

Panama ranks 133rd globally in rule of law as of 2025.

What is the World Bank indicator code for rule of law?▾

The World Bank indicator code is RL.EST. Data sourced from World Bank WGI.

What is the projected rule of law of Panama in 2025?▾

Panama's rule of law is projected to reach -0.44 by 2025 based on trend extrapolation.

What is the rule of law of Panama in 2025?▾

The rule of law of Panama in 2025 was -0.44. This ranks 133rd in the world.

Cite this page

APA
Panama Rule of Law. HistorySaid. Retrieved October 29, 2026, from https://historysaid.com/panama/rule-of-law/
BibTeX
@misc{historysaid_panama_rule-of-law, title = {Panama Rule of Law}, url = {https://historysaid.com/panama/rule-of-law/}, publisher = {HistorySaid}, year = {2026} }
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