Panama is known for its rich biodiversity and various ecosystems, including tropical rainforests, cloud forests, and numerous islands in the Atlantic and Pacific Oceans. The country has also experienced sustained economic growth and is an important international logistics hub. However, these benefits exist alongside significant social and territorial inequalities.

While there has been progress in reducing poverty, inequality remains a significant issue, particularly between urban and rural areas, as well as between the Indigenous population and the rest of the country. A large portion of employment is concentrated in low-productivity and highly informal sectors, restricting social mobility and access to social protection.

Access to quality public services such as education, healthcare, water, and sanitation is uneven, affecting rural, Indigenous, and Afro-descendant communities. Women, especially Indigenous women, encounter greater barriers to accessing education, employment, and basic services, which perpetuates gender gaps and limits their potential development.

Panama also faces significant environmental challenges. Environmental pressures and natural disasters threaten key sectors, including the Panama Canal, energy, tourism, and agriculture, with the most significant impact felt by vulnerable communities. Sustainable management of natural resources and adaptation to climate change are crucial for the country's future.

One year into the José Raúl Mulino government, the country faces notable challenges, including fiscal pressures, uncertainties related to mine closures, and drought risks that could affect Canal revenues. To address these issues, it is essential to strengthen institutions, improve public management, invest in human capital, and promote inclusive and resilient growth. By doing so, Panama can work towards more equitable and sustainable development.

Last Updated: Oct 6, 2025