The economy of Panama has exhibited strong growth since the turn of the century, and despite shrinking by 18% in 2020 due to the COVID-19 pandemic, recovered quickly in subsequent years. This recovery reflects the country's economic resilience, buttressed by a fiscal response to the crisis commensurate with the dimension of the challenge, mobilising 3% of GDP to fight the pandemic. The crisis also highlighted significant vulnerabilities in Panama's development model, including the dual nature of its labour market, where less productive informal work remains widespread, and the limited reach of its social protection system. In contrast to the rapid economic rebound, the social consequences of the pandemic are likely to be more long-lasting effects. The response and stimulus packages found new ways to address these issues innovating in social protection, in support to the productive sector and in mobilisation of resources. This report draws lessons from policy measures implemented during the pandemic and recovery phase and applies them to current strategic challenges. In doing so, it highlights policy priorities to make Panama's development path more inclusive, stronger and more resilient.