Panamaโข has been named the most prosperous country in Central America according โto the 2025 Prosperity index, surpassing Costa Rica and significantly outpacingโ Nicaragua. The index, developed by hellosafe, โฃassesses nations based on economic โquality, human capital,โค andโค governance, offering a comprehensive โคview of well-being beyond traditional economic indicators.
The Prosperity Index utilizes a weighted scoring system toโ determine rankings.โฃ Economicโ quality accounts for the largest portion at 60%, encompassing factors like โฃGDP per capita and economic diversification. The index also considers โคthe Gini coefficient, whichโฃ measures income inequality andโ represents 15% of the โweighting. Additionally,the national poverty rate contributes 10%,while theโข national savings rate makes upโ the remaining 5%. Data isโข primarily sourced fromโ the World Bank and the United Nations Growth Programโฃ (UNDP), with onyl countries possessing at least โข90% of the required โฃdata included in the calculations.
Costa Rica follows Panama as the second most prosperous nation in the region,โ demonstrating strength in human capital and governance. โฃNicaragua, however, occupies the โฃlast position in Central America, highlighting meaningful challenges in these key areas. The index provides โvaluable insights for โขinvestors, policymakers, and โขindividuals considering opportunities within theโ region, and underscores the importance of inclusive economic growth and strong governance for long-term prosperity.