Panama Long-Term Political Outlook

• Policy continuity will continue to be a primary strength of Panama over the coming years, as business-friendly policies are commonplace in legislation.
• Over the coming years, Fitch Solutions expects Panamanian policymakers to focus on increasing transparency and passing anti-corruption initiatives to help repair the country's image abroad while addressing domestic concerns.
• The government's shortcomings in addressing popular concerns over crime and income inequality will also weigh on its popular support.
• While public demonstrations over the perceived impunity of officials are increasingly common, opinion polls indicate crime and inequality in urban areas remain the primary concerns of citizens. This situation could weaken the country's mainstream parties over the long term and bolster the prospects of smaller parties with 'outsider' reputations.

 (Source: Fitch Solutions)