Panama: Gini index

Key figures

What the numbers say

In 2024, Panama's gini index rose 0.8 on 2023 (from 48.9 to 49.7).

Across the 22 yearly changes before that (1998 to 2023), the average change was −0.38 and a typical year strayed about 0.64 from that (the standard deviation). This year's change was 1.8 standard deviations above that average, so it was larger than a typical year, though not out of the range seen before.

On record, the biggest yearly rise was 0.8 in 2006 and the biggest yearly fall was 1.9 in 2007. The numbers show how large and when, not why; for the cause, look at what happened in that country in those years.

From 2015 to 2024 there is no clear straight-line trend: a straight line explains 21% of the movement over 8 observed years, so the value is moving around more than it is heading anywhere.

Worked out from the yearly values above. How the checks work: standard deviation, z-scores and straight-line trends.

How it compares

In 2024, Panama had the 3rd highest value of the 20 economies reporting that year. Higher is not always better: for some indicators the lowest value is the one to aim for. See the full ranking.

Closest to Panama in the 2024 ranking

• Colombia — 1st of 20: 54.4
• Brazil — 2nd of 20: 50.3
• Honduras — 4th of 20: 45.7
• Paraguay — 5th of 20: 44.2
• Chile — 6th of 20: 43

What this measures

Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality.

Limitations: Gini coefficients are not unique. It is possible for two different Lorenz curves to give rise to the same Gini coefficient. Furthermore it is possible for the Gini coefficient of a developing country to rise (due to increasing inequality of income) while the number of people in absolute poverty decreases. This is because the Gini coefficient measures relative, not absolute, wealth. Another limitation of the Gini coefficient is that it is not additive across groups, i.e. the total Gini of a society is not equal to the sum of the Gini's for its sub-groups.

All 30 values

Gini index in nearby economies

• Argentina — 42.4 (2024)
• Bolivia — 40.9 (2024)
• Brazil — 50.3 (2024)
• Chile — 43 (2024)
• Colombia — 54.4 (2024)
• Costa Rica — 45.5 (2025)
• Dominican Republic — 39 (2024)
• Ecuador — 45.9 (2025)
• El Salvador — 39.8 (2023)
• Honduras — 45.7 (2024)
• Mexico — 42.6 (2024)
• Paraguay — 44.2 (2024)
• Peru — 40.1 (2024)

More poverty data for Panama

• Income share held by second 20% — 8% (2024)
• Income share held by third 20% — 13% (2024)
• Income share held by fourth 20% — 21.1% (2024)
• Income share held by highest 20% — 54.3% (2024)
• Income share held by highest 10% — 37.6% (2024)
• Proportion of people living below 50 percent of median income (%) — 23.2% (2024)
• Income share held by lowest 10% — 1.2% (2024)
• Income share held by lowest 20% — 3.6% (2024)
• Poverty headcount ratio at $3.00 a day (2021 PPP) (% of population) — 3.1% (2024)
• Poverty gap at $3.00 a day (2021 PPP) (%)

Reading data like this

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Questions people ask

What is Panama's gini index?

49.7 in 2024, according to the World Bank (World Development Indicators).

How has it changed since 1979?

It is up 2.05% from 48.7 in 1979. The highest value was 58.5 in 1989 and the lowest 48.7 in 1979.

How does Panama rank?

3rd highest of 20 economies with data for 2024.

Is the latest change in gini index unusual for Panama?

In 2024, Panama's gini index rose 0.8 on 2023 (from 48.9 to 49.7). Across the 22 yearly changes before that (1998 to 2023), the average change was −0.38 and a typical year strayed about 0.64 from that (the standard deviation). This year's change was 1.8 standard deviations above that average, so it was larger than a typical year, though not out of the range seen before.

Where does this data come from?

The World Bank's World Development Indicators, licensed CC BY 4.0. Original source: World Bank, Poverty and Inequality Platform. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are mostly from the Luxembourg Income Study database..

Source

World Bank, World Development Indicators, indicator SI.POV.GINI, licensed CC BY 4.0. Original source: World Bank, Poverty and Inequality Platform. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are mostly from the Luxembourg Income Study database. Figures are fetched from the World Bank API and refreshed monthly; see the series on data.worldbank.org. The full definition and method are in the World Bank's metadata glossary. Comparisons use the same World Bank release.

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