Panama's President-Elect José Raúl Mulino Announces Cabinet to Tackle Economic and Social Challenges

On May 16, 2024, Panama's President-elect José Raúl Mulino announced his new cabinet, comprising both experienced and youthful ministers, to address the country's economic slowdown, social challenges, and migration issues.

Key appointments in Mulino's cabinet include Felipe Chapman as Economy and Finance Minister and Javier Martínez-Acha as Foreign Affairs Minister. Chapman, a business leader and son of former Planning Minister Guillermo Chapman, is expected to bring sound fiscal management to the role. Analysts from BancTrust & Co. praised Chapman's appointment, stating it increases the likelihood of sound fiscal management in upcoming years.

Javier Martínez-Acha, an economist with expertise in international relations, will oversee Panama's foreign policy. Martínez-Acha's background includes a bachelor's degree in industrial engineering and economic sciences from Texas A&M University and a career in financial and banking law, international and corporate law.

Another notable appointment is Julio Molto as Trade Minister. Molto, former head of the national police under former President Ricardo Martinelli, will oversee the closure of the First Quantum copper mine in Panama.

President-elect Mulino emphasized the importance of his cabinet in addressing Panama's pressing issues. He stated, "The campaign is over, from here on out it's our job to lead the country with the best people possible."

Mulino's administration is set to begin the transition process next month, with the official inauguration taking place on July 1. His government promises a business-friendly approach, following the economic strategy of his ally, former President Ricardo Martinelli, whose administration saw significant economic growth.

Analysts and market reactions have been positive, particularly regarding Chapman's appointment. Panamanian sovereign bonds have registered increases above most of their emerging market peers, reflecting confidence in the new economic leadership.

William Snead, an analyst at BBVA in New York, commented on the appointment, stating, "The appointment of Felipe Chapman, as Minister of Economy and Finance, is positive, since he comes from the business sector and is expected to support market-friendly initiatives."

Mulino's cabinet selections aim to address Panama's economic challenges and social issues. As the country prepares for the new administration, there is cautious optimism about the potential for sound fiscal management and effective governance.

Key Takeaways

• Panama's President-elect José Raúl Mulino announces new cabinet to address economic slowdown and social challenges.
• Felipe Chapman appointed Economy and Finance Minister, expected to bring sound fiscal management.
• Javier Martínez-Acha appointed Foreign Affairs Minister, with expertise in international relations.
• Julio Molto appointed Trade Minister, to oversee closure of First Quantum copper mine.
• Mulino's administration promises business-friendly approach, with positive market reactions.