1. Voluntary Return Flight to Caracas

On December 18, President José Raúl Mulino announced Panama’s first direct “voluntary return” flight to Caracas, scheduled for December 22. This flight will carry 70 Venezuelans back to their homeland, bypassing the usual layovers in Colombia. The program is part of Panama’s broader effort to manage migration flows while offering humane options for those wishing to return.

Mulino emphasized that this initiative reflects Panama’s commitment to balancing humanitarian concerns with national security. Analysts noted that the direct route reduces logistical complications and signals Panama’s evolving role in regional migration management.

2. Presidential Year-End Conference

President Mulino held his final press conference of 2025 at the Cuarto Puente project site. He addressed issues ranging from tourism and economic growth to migration and public security. He also responded to allegations of irregularities in ethanol production projects and discussed Panama’s participation in Mercosur.

Mulino highlighted infrastructure development as a cornerstone of his administration, stressing that projects like the Cuarto Puente will enhance connectivity and trade. Analysts observed that his remarks aimed to reassure investors and citizens amid growing scrutiny of public contracts.

3. Tourism Sector Outlook

Panama’s tourism industry reported steady recovery in 2025, with officials noting increased arrivals during the holiday season. The government emphasized efforts to diversify tourism beyond Panama City, promoting eco-tourism and cultural heritage sites.

However, concerns remain about safety in certain regions, particularly the Darién Gap. Travel advisories continue to caution visitors about crime risks. Analysts stressed that improving safety perceptions is critical to sustaining tourism growth.

4. Immigration Reforms in 2025

Panama implemented significant immigration reforms earlier in the year, reshaping visa categories and compliance requirements. Executive Decree No. 15 introduced stricter residency rules, affecting expats seeking retirement or business opportunities.

Officials argue that reforms balance economic interests with national security. Expats expressed mixed reactions, with some praising clarity while others criticized increased bureaucracy. Analysts noted that Panama remains attractive but is tightening its immigration framework.

5. Economic Growth and Infrastructure

Mulino highlighted Panama’s economic resilience, pointing to infrastructure projects like the Cuarto Puente and expanded port facilities. These initiatives aim to strengthen Panama’s role as a logistics hub.

Economists noted that while growth remains steady, challenges include inflation and global trade volatility. Analysts stressed that infrastructure investment is key to maintaining Panama’s competitive edge.

6. Allegations of Corruption in Ethanol Projects

Journalists questioned Mulino about alleged irregularities in ethanol production projects. Critics argue that contracts may have been awarded without proper oversight.

Mulino denied wrongdoing, insisting that all projects comply with legal standards. Analysts observed that corruption allegations remain a recurring theme in Panamanian politics, underscoring the need for transparency.

7. Security Concerns for Tourists and Expats

Travel advisories updated in late 2025 warned of crime risks in Panama, particularly in the Mosquito Gulf and Darién region. Reports highlighted theft and residential break-ins during the holiday season.

Expats generally report feeling safe in Panama City and tourist hubs, but petty crime remains a concern. Analysts stressed that addressing safety issues is essential to protect Panama’s reputation as a destination.

8. Extortion Cases Under Investigation

Authorities confirmed investigations into extortion cases involving public officials. Victims reported demands for payments in exchange for permits and services.

Mulino pledged to strengthen anti-corruption measures. Analysts noted that tackling extortion is vital to restoring public trust and ensuring fair governance.

9. Panama’s Role in Mercosur

Mulino discussed Panama’s participation in the Mercosur summit, emphasizing trade opportunities and regional cooperation. He argued that Panama’s strategic location makes it a natural partner for South American economies.

Analysts noted that deeper integration could boost Panama’s exports but also requires navigating complex political dynamics. Observers stressed that Panama’s engagement reflects its ambition to expand influence beyond Central America.

10. Media Coverage and Public Perception

Panamanian media outlets provided extensive coverage of Mulino’s press conference and migration initiatives. Public opinion remains divided, with supporters praising infrastructure progress and critics highlighting corruption concerns.

Analysts stressed that media scrutiny plays a crucial role in shaping accountability. The balance between positive economic narratives and persistent governance challenges will define Panama’s political climate heading into 2026..