The OECD Development Pathways series helps developing and emerging economies to identify innovative policysolutions to their specific development challenges. Higher levels of well-being and more equitable and sustainablegrowth cannot be achieved by merely reproducing the experience of industrialised countries. For each of thecountries studied, the series proposes options for action in specific policy areas and at the broader strategiclevel. It identifies the binding constraints to development across all sectors and proposes whole-of-governmentsolutions. Since the beginning of the 21st century, Panama has exhibited remarkable economic growth and has reduced the gap in terms of income per capita with high-income countries. Social progress has also been achieved, mainly through the reduction of poverty and advances in some well-being dimensions. However, challenges remain with regard to overcoming the so-called middle-income trap and consolidating the middle-class. This first volume of the Multi-dimensional Country Review of Panama identifies the main barriers to further inclusive development. It highlights the fact that promoting equitable, inclusive and sustainable economic growth and improving the wellbeing of all citizens should be at the core of Panama's development strategies.