José Raúl Mulino was elected President of Panama after winning the May 5 elections. The vote saw the highest turnout since the end of military rule in 1989, and with 34.23% of the vote, Moulineaux was almost 10 points ahead of his nearest rival.
“It was a very difficult campaign, full of all sorts of obstacles,” Mulino said. “I will definitely do what I have to do to move this country forward.”
Restoring confidence in Panama’s economy is high on the new CEO’s agenda, but several major issues could distract him from his focus. These include a campaign promise to close the Darien gap with Colombia, a lawless jungle area through which 150,000 migrants headed to the United States passed in 2024.
Panama also faces three arbitration claims totaling more than $20 billion thanks to a Supreme Court ruling in November 2023 that the government’s contract with Minera Panamá was unconstitutional, resulting in the closure of the Cobre Panamá mine, which accounted for about 75% of the country’s exports and 5% of its exports. GDP. Mulino promised to negotiate with the Canadian owners of First Quantum.
On March 28, Fitch Ratings downgraded Panama’s sovereign debt rating from BBB- to BB+. With another review due in the second half of this year, Mulino faces a battle for the country’s investment status.
This will not be helped by the upcoming verdict in the Panama Papers case, which promises to raise reputational problems in the country’s banking system. The case is based on 11.5 million documents from law firm Mossack Fonseca, published in April 2016, detailing offshore companies, financial information and confidential attorney-client information.
The country’s most famous asset is not without problems. Although traffic through the Panama Canal has increased (to 31 ships a day), authorities expect it will take until next year to return to normal after the severe drought. The Panama Canal Authority recorded revenue of $4.97 billion in 2023, up 14.9% from 2022.
Despite these problems, Mulino promised economic growth of 7%, improved access to government services in rural areas and job creation. However, the International Monetary Fund forecasts GDP growth this year of just 2.5%. Mulino, a maritime lawyer, has previously held cabinet-level positions in several governments. He will begin his duties as president on July 1.