PANAMA
Analyst
Marco Fernandez
Former Economic Advisor, Ministry of PlanningDatabanks
Recent Country Insights
The Legislative Commissions are finally elected: uncertainty ahead. Steps in the right direction in fiscal results through June. Crossroads in ACP investment
PANAMA · Report · 19 Aug 2025
The Budget Commission of the Legislative Assembly was installed on Monday, August 11. It will be chaired by Deputy Eduardo Vásquez of Cambio Democrático (CD). Minister Chapman stated that the MEF will present the budget proposal to the Commission on Wednesday, August 20; Vásquez will open the dis...
The budget was published today, but the Legislature won’t analyze it until next week (hopefully)
PANAMA · In Brief · 01 Aug 2025 · 1 response
The Ministry of Economy and Finance (MEF) presented its draft of the 2026 General State Budget to the plenary of the National Assembly last Wednesday. However, legislative committees have not yet been formed. This delay is due to internal disputes among political parties over control of key commi...
Short-term boost, long-term bets: Panama Canal projects and the economic outlook
PANAMA · Report · 07 Jul 2025
Panama’s economy posted strong 5.2% GDP growth in Q1 2025, driven primarily by the recovery of the Panama Canal and the expansion of Copa Airlines. The transportation sector alone contributed 56% of total growth, reflecting a rebound in toll revenues (+42.4% YoY) following the 2024 drought and th...
President Mulino´s State of the Union Speech: Messages to the voters and to the international markets
PANAMA · In Brief · 02 Jul 2025
Two hours after a surprise election of the Legislative Assembly's governing authorities, when a self-proclaimed opposition group to the government of José Raúl Mulino secured a narrow victory over Ricardo Martinelli's party, in a strange alliance with the deteriorating PRD, it was President Mulin...
The new leadership of the Legislative Assembly will be headed by a last-minute surprise candidate, Jorge Herrera, who defeated the favorite backed by José Raúl Mulino and Ricardo Martinelli and the PRD party.
PANAMA · In Brief · 01 Jul 2025
Context ahead of a key session in the Assembly Every year, on July 1st, the Legislative Assembly elects its presidents and vice presidents for a one-year term. The person who presides over the Assembly signs the laws issued by the State’s bodies, authorizes the legislature’s expenses (an importan...
Social unrest significantly impacts economic activity and weakens government leverage for future reforms
PANAMA · Report · 21 May 2025
Panama is navigating a complex landscape of social unrest, fiscal challenges, and policy shifts. The economy has been hit by month‑long strikes from SUNTRACS, teachers, and banana workers—driven by grievances over the pension law reform, the proposed reopening of the copper mine, ACP’s Río Indio ...
One step back and one step forward in boosting growth: the impact of U.S. tariffs and progress on the mine’s reopening
PANAMA · In Brief · 28 Apr 2025
Assessing the potential impact of U.S. tariffs on Panama’s economyThe U.S. administration suspended country-specific tariffs for 90 days starting April 9 but maintained the 10% baseline tariff on all goods and countries, including Panama. It remains unclear whether the U.S. government will ultima...
Logjam in Panama’s logistics sector: Hegseth’s visit, the Panama Ports audit, the Trans-Isthmian Railway purchase, and the new gas pipeline
PANAMA · Report · 11 Apr 2025
The visit of US Secretary of Defense Peter Hegseth to Panama, during which a memorandum of understanding and a joint declaration were signed, aims to strengthen security cooperation through joint exercises and a "cost-neutral" compensation mechanism for security services between the US and the Pa...
The Ministry of Foreign Affairs of Panama granted yesterday a safe-conduct to former President Ricardo Martinelli, which had been requested months earlier by the Government of Nicaragua but had not been accepted by Panama
PANAMA · In Brief · 28 Mar 2025
Martinelli was initially an asylum seeker without safe-conduct. Yesterday, the Ministry of Foreign Affairs wisely granted him safe-conduct on "humanitarian" grounds. By handling the situation this way, the ministry strategically avoided inadvertently legitimizing Martinelli's claim of political a...