Panama has been named the most prosperous country in Central America according to the 2025 Prosperity index, surpassing Costa Rica and significantly outpacing Nicaragua. The index, developed by hellosafe, assesses nations based on economic quality, human capital, and governance, offering a comprehensive view of well-being beyond traditional economic indicators.
The Prosperity Index utilizes a weighted scoring system to determine rankings. Economic quality accounts for the largest portion at 60%, encompassing factors like GDP per capita and economic diversification. The index also considers the Gini coefficient, which measures income inequality and represents 15% of the weighting. Additionally,the national poverty rate contributes 10%,while the national savings rate makes up the remaining 5%. Data is primarily sourced from the World Bank and the United Nations Growth Program (UNDP), with onyl countries possessing at least 90% of the required data included in the calculations.
Costa Rica follows Panama as the second most prosperous nation in the region, demonstrating strength in human capital and governance. Nicaragua, however, occupies the last position in Central America, highlighting meaningful challenges in these key areas. The index provides valuable insights for investors, policymakers, and individuals considering opportunities within the region, and underscores the importance of inclusive economic growth and strong governance for long-term prosperity.
