Country Reports

Panama Country Report

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Risk Level

Very High


Executive Summary

Presidential and legislative elections are scheduled for 5 May 2019. Candidates leading voter intention in polls are Laurentino Cortizo of the opposition Revolutionary Democratic Party (Partido Revolucionario Democrático: PRD), followed by Rómulo Roux of the opposition Democratic Change party (Cambio Democrático: CD), and José Isabel Blandón of the current ruling Panamanian Party (Partido Panameñista). Cortizo’s campaign focus is against corruption, while Roux’s is on economic growth via incentives such as income tax cuts. Blandón’s priorities include increased government decentralisation and attracting investment in renewable energy. President Juan Carlos Varela, whose ruling coalition holds a minority of seats in the National Assembly, is facing increasing policy paralysis and has been unable to pass some key legislation since mid-2018, including a bill seeking to criminalise tax evasion to avoid grey-listing by the Financial Action Task Force. This paralysis is likely to continue until the change of government in July, meaning that further delays to this and other legislation are likely. Real GDP growth slowed to 3.6% during the first three quarters of 2018, which will lead the economy to grow below 4.0% for the full-year 2019. Economic growth is likely to be supported by continued Chinese investment in the infrastructure sector, including the USD1.4-billion Fourth Bridge over the Panama Canal, which all three main presidential candidates support. Panama and China are negotiating a Free Trade Agreement, and the two countries have already signed 47 bilateral agreements covering trade, infrastructure development, and other areas. The government, foreseeing the effects of increasing trade protectionism, modified the 2018 Fiscal Responsibility Law to increase the fiscal deficit cap to 2.0% of GDP from 1.5% of GDP. This modification led the government to increase its capital expenditures from its budget draft to boost projected economic expansion to around 4.0% for 2019. © 2019, IHS Markit Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.
Last update: January 22, 2019

Operational Outlook

New businesses can be created through a streamlined online system, and multinational legislation facilitates the establishment of headquarters or regional affiliates. Panama receives high levels of foreign investment in infrastructure to improve transport and communications systems, which are already of a high standard. However, corruption is common, and some labour regulations are inflexible. Multi-sector unions are well organised and have the capability to delay projects for several days, and in rare cases weeks.

Last update: January 25, 2019



Terrorism risks are low in Panama. There are no domestic groups with the intention or capability to target Panamanian and important Western assets, including the Panama Canal. However, members of Colombian guerrilla group FARC who are refusing to disarm are increasing drug trafficking activity in Darién province. The Chiriquí province has a strong presence of criminal groups and drug-trafficking organisations, but these are unlikely to target foreign assets or foreign individuals. Criminal gangs operate in Colón and Panama City, raising the risk of violent robbery of individuals and local businesses, and express kidnapping. Vessels entering the Panama Canal face a low risk of sea robbery.

Last update: October 25, 2018

War Risks

The risk of interstate war remains low. There are no pending boundary disputes, but Panama’s Darién province along the Colombian border has been affected by a spillover of operations by Colombian insurgent group FARC – now mainly involving those refusing to disarm – and illegal migration. There is no risk of war with Colombia and the two countries co-operate on anti-trafficking initiatives. Panama has been involved in only one interstate war since independence in 1903: the 1989 US invasion to depose the military government of Manuel Noriega.

Last update: March 26, 2019

Social Stability


Hydroelectric and mining projects are likely to face protests from indigenous communities, unions, and social activists. Mandatory consultation processes for future hydroelectric projects in the Ngäbe-Buglé indigenous region are likely to increase the assertiveness of indigenous communities in presenting demands also via protests. Protests often take the form of roadblocks on access roads, including the Pan-American Highway and light vandalism against company property and vehicles. Major construction union SUNTRACS is likely to continue strikes over demands for concessions and in opposition to economic policies not favouring union members.

Last update: March 26, 2019

Health Risk

Very high

Vaccines required to enter the country

Yellow fever: A yellow fever vaccination certificate is required for travelers arriving from countries with risk of yellow fever transmission. A single dose of YF vaccine is sufficient to confer sustained life-long immunity against the disease; it should be taken ten days in advance to be fully effective.

Vaccines recommended for all travelers

Routine vaccinations: Consult your doctor to ensure all routine vaccinations - such as for diphtheria, tetanus, polio, tuberculosis, influenza, measles, mumps, pertussis, rubella, varicella, etc. - are up to date (include booster shots if necessary).

Vaccines recommended for most travelers

Hepatitis A: The vaccine is given in two doses, six months apart, and is nearly 100 percent effective. The WHO recommends the vaccine be integrated into national routine immunization schedules for children aged one year or older.

Typhoid fever: The typhoid fever vaccine can be administered via injection (administered in one dose) or orally (four doses). The vaccine is only 50-80 percent effective, so travelers to areas with a risk of exposure to typhoid fever, a bacterial disease, should also take hygienic precautions (e.g. drink only bottled water, avoid undercooked foods, wash hands regularly, etc.). Children can be given the shot beginning at two years of age (six for the oral vaccine).

Vaccines recommended for some travelers

Hepatitis B: The WHO recommends that all infants receive their first dose of vaccine as soon as possible after birth, preferably within 24 hours. The birth dose should be followed by two or three doses to complete the primary series. Routine booster doses are not routinely recommended for any age group.

Rabies: The rabies vaccination is typically only recommended for travel to remote areas and if the traveler will be at high risk of exposure (e.g. undertaking activities that will bring them into contact with dogs, cats, bats, or other mammals). The vaccination is administered in three doses over a three-to-four week period. Post exposure prophylaxis is also available and should be administered as soon as possible following contact with an animal suspected of being infected (e.g. bites and scratches).

Yellow fever: A yellow fever vaccination certificate is generally recommended for travelers to areas located east of the Panama Canal.

Last update: April 5, 2019

Natural Risks

Very high

The Atlantic hurricane season lasts from June 1 until November 30. While hurricanes and tropical storms rarely hit Panama directly, storm systems can bring torrential rains, leading to flooding and landslides. Hurricane Otto lingered off the northern coast for several days in November 2016, resulting in at least ten deaths and an estimated USD 10 million in damages, prompting the government to decree a six-month state of emergency.

Mountainous areas of the country can prove dangerous, particularly during the long rainy season - which extends from March until December - due to flooding, mudslides, and subsequent road closures. Flooding also occurs within Panama City and can result in transportation chaos.

Panama is located in a seismically active zone and earthquakes occasionally occur. A 7.7-magnitude earthquake struck neighboring Costa Rica in 1991, leaving dozens dead and resulting in major infrastructural damage in the Panamanian province of Bocas del Toro.

Last update: April 5, 2019



Cases of taxi drivers robbing kidnapping and/or robbing their clients have been reported, and offending drivers may be armed. To minimize this risk, only use official taxis (yellow in color), never take a taxi with tinted windows, ensure that the car's license plate as well as the drivers credentials are visible, and never take a taxi that already has an occupant (potential accomplice) or allow drivers to pick up more clients (a common practice).

Larger highways are generally well maintained but secondary roads are often less so. Traffic accidents are common along the Pan-American Highway, which should be avoided when possible after nightfall. According to one study, Panama is one of the worst countries in the world for drivers, due to poorly maintained roads and heavy traffic.

In the Panama City region, the metro bus system is safe.

Flooding, particularly common from April to December, can leave roads impassable (see NATURAL RISKS section).

For intercity travel, long distance buses and domestic airlines are safe.

Last update: April 5, 2019

Practical Information


Panama's climate is tropical; the dry season extends from January until April and the rainy season from May until December. The coast receives more rainfall than the interior of the country. Along the plains, temperatures fluctuate between 20°C and 30°C and tend to be lower in mountainous areas (10°C to 18°C).

Useful Numbers

Country Code: +507
Police: 911
Fire Dept.: 911
Ambulance: 911


Voltage: 110 V ~ 60 Hz


Last update: April 5, 2019