Panama has experienced impressive andsignificant economic growth, emerging as one of the betterperformers in Central America in recent years and one of thefastest growing economies worldwide. From 2003 to 2013,Panama has averaged an annual GDP growth rate ofapproximately 7 percent, surpassing the average GDP growthin Central America. It has also emerged as one of thefastest growing economies worldwide. Even during theeconomic crisis of 2008-2009, its economy continued to growalbeit at a lower rate. This note recommends that Panamaprioritize three main aspects: a) improving theeffectiveness of social public spending by further enhancingthe pro-poor and pro-indigenous features of targetingmechanisms; b) reducing inefficiencies in the varioussectors, for example, by improving the coordination betweenthe Ministries of Education, Health, Social Development, andCSS to minimize duplication of efforts and resources; and c)strengthening planning, budgeting, and information tools andsystems, legislation, and institutions to supportimplementation and track progress toward Government goals.