Who Leads Panama?

Leadership

José Raúl Mulino

President of Panama

Political Party

Realizando Metas

Inaugurated

Jul 1, 2024

Term Ends

2029

Next Election

2029

Born

Mar 10, 1959 in Panama City, Panama

Country Population

4.5M

Continent

North America

Jose Raul Mulino became president in July 2024. A lawyer and former security minister, he won after his original running mate, Ricardo Martinelli, was banned from running due to a money laundering conviction. He has focused on managing the Panama Canal amid drought-related disruptions, addressing migration through the Darien Gap, and economic diversification.

Government

Capital

Panama City

Official Language(s)

Spanish

Currency

Balboa / US Dollar (USD)

Government Type

Presidential Republic

Area

75,417 km²

Panama is a Central American country best known for the Panama Canal, one of the world's most important waterways connecting the Atlantic and Pacific oceans. Panama City has the most modern skyline in Latin America and serves as a major banking and financial services hub. The country has remarkable biodiversity, with more bird species than the US and Canada combined.

Panama is a presidential republic. José Raúl Mulino of the Realizando Metas coalition became President on July 1, 2024, winning with approximately 34% of the vote in a fragmented election. Mulino, a lawyer and former security minister, became the candidate after the original candidate Ricardo Martinelli was banned from running due to corruption convictions. Martinelli had taken refuge in the Nicaraguan embassy to avoid prison. Mulino's presidency has been dominated by the Canal sovereignty dispute with U.S. President Trump and managing the economic fallout from the Cobre Panamá copper mine closure.

Economic Snapshot

GDP

$77.3B

GDP Per Capita

$16,900

Income Group

High income

Trade Balance

Variable; Canal revenues offset import needs

Inflation

1.5% (INEC, 2023)

Panama's economy is essentially a toll and services economy: the Canal charges ships to pass, the free trade zone charges companies to store and re-export goods, banks charge fees for financial services, and Panama City charges for logistics coordination. This has made Panama wealthy relative to Central American neighbors without relying on agriculture or manufacturing. The U.S.-Panama Canal relationship has been one of the most significant in 20th-century geopolitics. The U.S. built the Canal (1904-1914), controlled the Canal Zone as a de facto colony, and operated the Canal until December 31, 1999, under the Torrijos-Carter Treaties (1977). The transfer of the Canal to Panama was a defining moment of Panamanian sovereignty. President Trump's statements (repeated throughout 2024-2025) that the U.S. should retake control of the Canal, alleging excessive Chinese influence in Canal operations, have created the most significant Panama-U.S. friction since the 1999 transfer. Panama has firmly rejected any Canal sovereignty discussion. The Cobre Panamá closure is a case study in the tension between resource development and democratic governance. First Quantum Minerals' mine was one of the world's largest copper operations; its revenues were significant for Panama. But the concession contract was challenged legally, and mass protests (including road blockades that paralyzed the country for weeks) forced the Supreme Court to rule the contract unconstitutional. The mine's closure, costing approximately 5% of GDP, is a cautionary tale for resource investment in democracies.

Major Industries

• Panama Canal (5% of world trade; 14,000 ships annually; primary revenue source)
• Financial Services (offshore banking hub; Colón Free Trade Zone)
• Logistics & Maritime (Colón: world's 2nd largest free trade zone)
• Copper Mining (Cobre Panamá: was Latin America's largest copper mine; now closed)
• Tourism
• Construction & Real Estate

Panama is known for: The Panama Canal is the world's most significant maritime infrastructure after the Suez Canal, handling approximately 5% of global trade and 40% of U.S. container traffic. Colón Free Trade Zone is the world's second-largest free trade zone (after Hong Kong). Cobre Panamá, operated by First Quantum Minerals, was Latin America's largest copper mine before being shut down by court order following mass protests in November 2023.

Trade Profile

Panama's official trade balance (goods) is typically in deficit, but this is more than offset by Canal tolls and financial services income. Panama's GDP per capita is high for Latin America because of the Canal and financial services. The closure of Cobre Panamá (which contributed approximately 5% of GDP) was a significant economic setback.

Top Exports

• Canal services (tolls)
• Copper (Cobre Panamá; now closed)
• Bananas
• Gold
• Shrimp
• Sugar

Top Imports

• Consumer goods
• Petroleum
• Machinery
• Vehicles
• Electronics
• Chemicals

Export Destinations

• United States
• China
• Colombia
• Japan

Import Partners

• United States
• China
• Mexico
• Colombia

The world depends on Panama for: Panama Canal passage (5% of global trade), Colón Free Trade Zone logistics, and ship registry (world's largest flag)

Panama depends on the world for: Consumer goods, petroleum, machinery, food, and vehicles

Global Role

Panama's global footprint is defined by the Panama Canal (5% of world trade), Donald Trump's claims of U.S. rights over the Canal, the Cobre Panamá copper mine closure, the Colón Free Trade Zone, the Panama Papers (2016 offshore finance scandal), and the Darién Gap migration route.

• Donald Trump stated before and after his 2025 inauguration that the United States should retake control of the Panama Canal; Panama has firmly rejected any sovereignty discussion
• The Panama Canal handles approximately 14,000 ships and 5% of global trade annually; approximately 40% of U.S. container cargo passes through
• The Panama Papers (2016) leak from law firm Mossack Fonseca exposed the offshore accounts of world leaders, celebrities, and criminals; it implicated 140+ politicians from 50 countries
• Cobre Panamá, once Latin America's largest copper mine, was shut down in November 2023 following mass protests and a Supreme Court ruling; the closure cost approximately 5% of GDP
• The Darién Gap between Colombia and Panama is one of the world's most dangerous migration routes; hundreds of thousands of migrants (primarily heading to the U.S.) cross annually
• Panama City's skyline, with more skyscrapers than any Latin American city except São Paulo, reflects its role as a regional financial hub
• The Panama Canal expansion (Third Lock; completed 2016) cost $5.25 billion and doubled the Canal's capacity to handle Neo-Panamax container ships

Frequently Asked Questions

Who is the current President of Panama?

José Raúl Mulino, a lawyer and former security minister, became President on July 1, 2024. He won the May 2024 election with approximately 34% of the vote after becoming the candidate when the original candidate, former President Ricardo Martinelli, was disqualified due to a corruption conviction. Mulino has been dealing with the Canal sovereignty dispute with U.S. President Trump and the economic fallout from the Cobre Panamá mine closure.

Does the U.S. still control the Panama Canal?

No. Panama has controlled the Panama Canal since December 31, 1999, under the Torrijos-Carter Treaties signed in 1977. The Panamanian Canal Authority (ACP) operates the Canal and charges tolls to all ships using it. President Trump made repeated statements claiming the U.S. should retake control, alleging excessive Chinese influence (a Chinese company operates some port facilities near the Canal). Panama has firmly rejected any Canal sovereignty discussion, and the Canal Treaty is a bedrock of Panamanian national identity.

What were the Panama Papers?

The Panama Papers were a massive leak of 11.5 million financial documents from Panamanian law firm Mossack Fonseca, published by the International Consortium of Investigative Journalists in April 2016. They revealed offshore accounts and shell companies used by world leaders, celebrities, athletes, and criminals to hide wealth and avoid taxes. At least 140 politicians from 50 countries were implicated, including heads of state and government. The leak triggered multiple government investigations globally and led to policy changes on offshore finance transparency.

Related Countries

• United States: Built and operated the Canal 1904-1999; Trump's Canal sovereignty claims; largest trade partner; significant historical relationship
• China: Chinese companies operate port facilities near the Canal; Trump's concern about Chinese Canal influence; growing trade relationship
• Colombia: Panama separated from Colombia in 1903 (U.S.-backed); Darién Gap connects Colombia and Panama; major trade partner
• Canada: First Quantum Minerals (Cobre Panamá copper mine) is Canadian; the mine closure is a major bilateral issue
• Ecuador: Fellow small Latin American nation facing pressures from larger power
• Costa Rica: Northern neighbor; fellow Central American democracy; Darién migration route