Pandemic frustrations will drive Panama discontent

Significance

The COVID-19 crisis has prompted a sharp decline in revenues. The fiscal crunch and related austerity measures are driving mounting popular dissatisfaction with the government, expressed through protests in Panama City in mid-March.

Impacts

• Rising unemployment will push more families back below the poverty line, reversing gains made in this area over recent years.
• Travel and tourism will remain muted over much of 2021 until most major source markets are vaccinated.
• Business closures are likely to increase when economic support measures are withdrawn, probably later in 2021.