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Significance

Panama has demonstrated resilience and maintained economic momentum, despite challenges such as reduced traffic through the drought-stricken Panama Canal and the closure, after months of protests, of the Cobre Panama mine. Such issues will be a source of challenges for whoever wins the general election on May 5.

Impacts

The Cobre Panama dispute may influence voters to the benefit of candidates who have positioned themselves against the mine.

Food and utility price rises due to adverse weather could affect inflation, which the IMF currently expects to stay low, at around 2.2%.

Unresolved US-China trade tensions could weigh on traffic through the Panama Canal in 2024.

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