The Financial Aftershock: Panama's 7.7 Quake Threatens to Wipe Out Up to 10% of Economy

Hospital personnel and patients stand outside the maternity ward of the Santo Tomas hospital, after a severe earthquake hit the country, in Panama City on October 9, 2026. A magnitude 7.6 earthquake shook Panama, according to the U.S. Geological Survey (USGS), sparking panic in the capital, though no casualties or damage have been reported so far. (Credit: Photo by MARTIN BERNETTI / AFP via Getty Images)

The Briefing:

• USGS RED ALERT: The PAGER model issued its highest-tier warning after Panama's magnitude 7.7 earthquake — one of the most powerful the country has recorded in the modern era — with early readings initially suggesting a magnitude as high as 8.0.
• ECONOMIC EXPOSURE: Losses are projected between 1% and 10% of Panama's GDP, or roughly $970 million to $9.7 billion; USGS PAGER data shows approximately 194,000 people experienced severe or violent shaking, while at least 27 people sustained injuries.
• CANAL AND AIRPORT INTACT: The Panama Canal sustained no damage and kept running. Tocumen International Airport briefly halted operations but reopened the same afternoon after passing structural inspection. A Pacific tsunami warning triggered coastal evacuations before being canceled.