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1 1 (January 4, 2022)

handle is hein.crs/govegxv0001 and id is 1 raw text is: Congre s ion I Res arch Service inforrning [h iegislative dbtsi> 1914 Updated January 4, 2022 Panama: An Overview Panama's central location in the Americas (linking North and South America), large financial sector, use of the U.S. dollar as currency, and transportation infrastructure- especially the Panama Canal, which connects the Atlantic and Pacific Oceans-make the country a global trade hub and a strategic partner for the United States. Figure I. Map of Panama Source: CRS. Poltical and Economic Environment Panama holds regular free and fair democratic elections and generally respects civil liberties and political rights, although corruption remains a significant challenge. Current President Laurentino Nito Cortizo of the center- left Democratic Revolutionary Party (PRD) won a narrow victory in Panama's May 2019 elections, receiving 33% of the vote in a seven-candidate contest. Cortizo's PRD also won 35 seats in Panama's 71-seat National Assembly; it is working in coalition with the National Republican Liberal Movement (Molirena), which has five seats in the Assembly, providing the government with a majority. Cortizo heads Panama's seventh civilian government since the December 1989 U.S. military intervention that ousted the military regime of General Manuel Antonio Noriega. The endurance of elected civilian democracy in Panama for more than 30 years is a significant departure from the country's history of military rule, including the populist rule of General Omar Torrijos (1968-1981) and the increasingly repressive rule of Noriega (1983-1989). Cortizo succeeded Juan Carlos Varela (2014-2019) of the center-right Panamenista Party. Varela served as vice president during the Ricardo Martinelli administration (2009-2014) and as foreign minister for two years until Martinelli fired him, related to Varela's allegations of governmental corruption. Once in office, the Varela administration pursued numerous corruption cases against Martinelli government officials, including Martinelli himself, who was investigated over irregularities in a public welfare program and illegal wiretapping and pardons. The United States extradited Martinelli to Panama in 2018; he was acquitted twice on illegal wiretapping, most recently in November 2021, and reportedly is considering running for president in 2024. In December 2021, the former president's two sons pleaded guilty to money laundering in U.S. federal court in New York in a case involving Odebrecht, the Brazilian construction company. Panama continues to contend with the severe public health and economic effects of the Coronavirus Disease 2019 (COVID-19) pandemic. Deaths surged from November 2020 to January 2021 and in June and July 2021. As of January 4, 2022, Panama reported over 7,400 deaths (with a mortality rate of 175 per 100,000 people) and 58% of its population was fully vaccinated, according to Johns Hopkins University. The government has purchased vaccines from pharmaceutical companies, received vaccine donations from the United States (see below), and has procured vaccines through the COVID-19 Vaccines Global Access Facility, a mechanism developed by global health organizations to facilitate equitable vaccine distribution. Panama at a Glance Population: 4.337 million (2021, IMF est.). Area: 29,120 square miles, slightly smaller than South Carolina. GDP: $60.1 billion (2021, current prices, IMF est.). Real GDP Growth (% change, constant prices, IMF): 2019, 3.0%; 2020, -17.9%; 2021, 12.0% est.; 2022, 5.0% est. Per Capita GDP: $13,861 (2021, current prices, IMF est.). Key Trading Partners: U.S. (22.2%), China (12.5%), Mexico (4.9%), Spain (4.2%), and Costa Rica (4.1%) (2020, total trade, TDM). Sources: International Monetary Fund (IMF), World Economic Outlook Database, October 2021; Panama National Institute of Statistics, as presented by Trade Data Monitor (TDM). Panama's services-based economy averaged almost 6.2% growth annually from 2010 to 2019, according to IMF statistics, in large part because of the Panama Canal expansion and other large infrastructure projects, such as a metro system for Panama City; a third bridge over the canal; and expansion of the country's airports, roads, and highways. The Panama Canal expansion was completed in 2016 and included adding a new set of locks and channels, which doubled the canal's capacity. The IMF reports that Panama's economy contracted almost 18% in 2020 due to the pandemic but estimates a growth rate of 12% in 2021. Increased mining and a metro system expansion are contributing to economic growth. Before the pandemic, Panama's strong growth and targeted social programs contributed to poverty reduction, although poverty remained higher in rural areas, particularly among Indigenous people. According to the World Bank, the pandemic led to an increased poverty rate of 14.9% in 2020,

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