Wood in the rough market in Panama

Earlier Report Observations

The Panamanian rough wood market began the period with high production levels around 918 000 t in 2018, supported by regulatory measures to ensure wood legality. The implementation of a timber traceability system and a 5% VAT rate for rough wood aimed to formalize the sector and encourage sustainable forestry. These efforts involved active participation from companies like Batipa S.A. and Panama Reforestation Service S.A. in legal wood networks. Market volume remained stable through 2019 and 2020, with domestic consumption near 672 000 t in 2019, as administrative streamlining for construction procedures facilitated market activity.

A turning point came in 2021 when the Ministry of Environment issued a moratorium on new forest permits (Resolution DM-0550-2021) to regulate exploitation and conservation. This restriction directly reduced wood production, which fell to 890 000 t, and contributed to a sharp drop in domestic market volume to 535 000 t. Despite the decline, exports surged to 355 000 t as available production was directed abroad.

From 2022 onward, the market recovered strongly, driven by new construction regulations that promoted wood use. The adoption of the Structural Design Regulation (REP-2021) and later the Sustainable Building Regulation included updated standards for timber structures, boosting domestic demand for wood. By 2023, market volume rebounded to 683 000 t, even as production continued to gradually decline to 874 000 t and exports fell to 190 000 t. The ongoing timber traceability system and forest business rounds further supported legal trade and market stability.

Production wood in the rough in Panama

In kind, 2017-2020, K t

Top producers of wood in the rough, 2017-2020

World map of production of wood in the rough, 2017-2020

Wood in the rough production in Panama declined for the second consecutive year. In 2020, Panama produced 899.0 K t of wood in the rough, marking a slight decline of 1.0% compared to 2019. The largest decrease occurred in 2019, at 1.0%, while the largest increase was recorded in 2018, at 0.9%. Production peaked in 2018 at 917.8 K t.

Annual dynamics of production in Panama in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Wood in the rough production in Panama declined for the second consecutive year. In 2020, the output was valued at 126.8 M $ US, representing a 6.8% drop from the previous year. Over the period from 2017 to 2020, production decreased by 15.9%, with a compound annual growth rate (CAGR) of -5.6%. The largest decline occurred in 2019, at 13.5%, while the largest increase was in 2018, at 4.2%. The highest value was recorded in 2018 at 157.3 M $ US.

Annual dynamics of production in Panama in value, 2017-2020, M $ US

Exports wood in the rough from Panama

Exports in kind, K t

In 2020, Panama exported 239.9 K t of wood in the rough, showing a rise of 1.4% from 2019. The largest decline was recorded in 2019, at 10.7%, while the largest increase occurred in 2018, at 10.0%. Exports reached their lowest point in 2019 at 236.7 K t and peaked in 2018 at 265.1 K t.

Annual dynamics of product's exports from Panama in kind, 2017-2020, K t

From 2017 to 2020, the export market structure was highly concentrated, with India alone accounting for 94.1% of total exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Panama in kind, 2017-2020

Exports in value, K $ US

Panama's wood in the rough exports declined for the second consecutive year. In 2020, exports amounted to 33 850 K $ US, reflecting a moderate decrease of 4.5% year-over-year. Over the period from 2017 to 2020, exports decreased by 15.3%, with a compound annual growth rate (CAGR) of -5.4%. The largest decline occurred in 2019, at 21.9%, while the largest increase was in 2018, at 13.6%. The maximum value was recorded in 2018 at 45 417 K $ US.

Annual dynamics of product's exports from Panama in value, 2017-2020, K $ US

From 2017 to 2020, India absorbed 87.5% of the total export value of wood in the rough from Panama, with the remainder distributed among a wide range of smaller destinations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Panama in value, 2017-2020

Imports wood in the rough to Panama

Imports in kind, K t

The data reveals irregular changes, indicating a volatile market environment. Imports peaked in 2017 and reached their lowest point in 2020, with a 22-fold difference between these years. In 2020, Panama's wood in the rough imports amounted to 0.0 K t, reflecting an abrupt decrease of 94.6% from 2019. The largest increase was recorded in 2019, at 145.1%.

Annual dynamics of product's imports to Panama in kind, 2017-2020, K t

From 2017 to 2020, the United States and Brazil clearly dominated the partner structure for imports in kind, while other countries together formed the remaining share.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Panama in kind, 2017-2020

Imports in value, K $ US

Volatility characterized the market behavior during these years. Imports peaked in 2017 and bottomed out in 2020, with a top-to-bottom ratio of 4.6 times. In 2020, Panama imported a total of value_last_year K $ US of wood in the rough, reflecting an abrupt fall of 73.7% year-over-year. The largest increase was recorded in 2019, at 117.8%.

Annual dynamics of product's imports to Panama in value, 2017-2020, K $ US

From 2017 to 2020, the United States and Brazil were the dominant suppliers of wood in the rough to Panama, together accounting for 85.6% of total imports in value terms, with other partners forming a less significant background.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Panama in value, 2017-2020