Experts deem Sunday's presidential election in Panama as the "most significant" in decades.

Experts deem Sunday's presidential election in Panama as the most significant in decades.

"The Panama elections are extremely crucial, being the most significant since the US invasion in 1989, according to Daniel Zovatto, a globally recognized fellow at the Latin America Program from the Wilson Center. He emphasized that the upcoming president, regardless of who they might be, will have to deal with an extensive list of issues in a country that is currently deeply divided and fraught with political tensions and uncertainties.

The electorate's concerns extend beyond just the financial management of a nation with a 4.4 million-strong population. They're also grappling with high inflation and a stagnating economy that has left many disgruntled. The issue of water access is another concern for voters - droughts amplified by El Nino have taken a toll by making potable water scarce in certain regions and reducing the capacity of the Panama Canal, a key driver of the country's GDP.

Panama, once the economic leader in the region, is experiencing a noticeable slowdown in recent years, with the IMF projecting a disappointing GDP growth of just 2.5% this year, down from 7.3% last year. Fitch, a credit agency, recently downgraded Panama's status to junk, citing 'fiscal and governance challenges' following a contentious decision to close the larges mine in the country.

Prominent personalities vying for the presidency include Jose Raul Mulino, a former public security minister with right-wing affiliations. He has proposed a bold plan to fuel private hiring through government funding and restore the country's economic glory. However, he also intends to shut down the Darien Gap, a notorious patch of jungle leading from Panama that's become a major route for migrants attempting to enter the US.

This migration issue is causing a stir in the United States as well, since Presidential candidates there are preparing for their own elections this fall. Over half a million migrants, primarily from Venezuela, passed through the Darien Gap in 2023, twice the number from 2022. The US has been working closely with Panamanian and Colombian officials to curb the migration.

The closure of the jungle to migrants, a plan that Mulino has advocated for, has left some experts skeptical. Though he hasn't shared any details, some believe that it may not halt migration, but simply prompt new pathways for travel.

Achieving Goals presidential candidate José Raúl Mulino speaks with reporters after meeting with members of the Electoral Observation Mission, in Panama City, Wednesday, May 1, 2024.

The biggest issue on the Panamanian voters' minds is, without a doubt, corruption. A Gallup poll has reported that this is their top concern. The recent corruption scandal involving former Presient Ricardo Martinelli, who was banned from running due to a past corruption conviction, is an example of this.

Martinelli was handed a sentence of more than ten years in prison for money laundering following the 'New Business' scandal. The case involved a publishing company that was purportedly acquired with state contract funds that were managed improperly. This ex-president continues to proclaim his innocence and is in Nicaragua's embassy in Panama City, where he has been granted asylum by Nicaraguan officials.

Mulino, who was initially Martinelli's running mate, became the Achieving Goals party's nominee after Martinelli's disqualification by the Panamanian electoral court in March. The legitimacy of Mulino's candidacy was challenged until a few days prior to the election, casting a shadow over the race. On Friday, the country's Supreme Court declared Mulino's candidacy constitutional, allowing his campaign to continue.

Seven other candidates are in the mix for the presidency, including Vice President Jose Gabriel Carrizo, former President Martin Torrijos, and former minister Rómulo Roux. Without a presidential runoff or minimum threshold to win, a successful candidate could obtain power with significantly less than the majority of support from the electorate."