In brief

At the May 2024 presidential election a former security minister, José Raúl Mulino, of the centre-right Realizando Metas was chosen as Panama's new leader. Mr Mulino will have to contend with a fractured Congress, as the simultaneous legislative election resulted in a large number of left-leaning independents. Building consensus on major legislation will be tricky. It is also unclear whether Mr Mulino will attempt to overturn the money-laundering conviction handed down to his ally, a former president, Ricardo Martinelli.

Urgent issues also include resolving the future of Cobre Panamá, Central America's largest copper mine, which was closed in 2023 after the Supreme Court ruled that the government's contract with the mine's Canadian operator, First Quantum Minerals (FQM), was unconstitutional. FQM is likely to pursue an international arbitration case. In the meantime, the closure will do significant damage to Panama's economy and exports. The Canal also requires major investment to ensure that periods of dry weather do not result in insufficient water for usual numbers of ships to transit.

Read more: Mulino emerges as Panama's choice for the presidency