Friday, January 16, 2026.
Quiet Lessons From Noisy Times
Watching the unrest and polarization around immigration and enforcement in the U.S. has made me reflect on something important for those of us living abroad, especially expats in Panama.
One of the biggest reminders is that legal status always matters. Things can feel stable for a long time, right up until they don’t. Keeping documents current and understanding where you stand legally isn’t paranoia, it’s just good sense.
It’s also a reminder that visibility isn’t always your friend. In a country that isn’t your own, integration tends to serve you better than loud political expression. Panama is generally tolerant and welcoming, but it’s also institutionally conservative, and foreigners are expected to observe more than lead.
Another lesson is how much tone and approach matter. Respect for local enforcement, calm interactions, and understanding how things work locally go much further than arguing or trying to import expectations from elsewhere. Along the same lines, even basic Spanish dramatically reduces friction. You don’t need to be fluent; effort alone changes how people respond.
Community plays a bigger role than many realize. Knowing your neighbors, building staff, and local shop owners creates a quiet buffer that no online group ever will. When people know you, things tend to go smoother.
It’s also worth remembering that Panama doesn’t frame issues the way the U.S. does. Left vs. right culture wars don’t translate well here, and forcing that lens often creates unnecessary tension. Local concerns are usually practical, not ideological.
Finally, media (especially social media) rarely reflects daily reality. What’s trending online often has very little to do with life here on the ground.
Panama remains one of the most stable and welcoming countries in the region, but stability is a two-way agreement. The expats who thrive here tend to be prepared, discreet, respectful, and integrated. Those who struggle often bring expectations, arguments, and cultural battles that don’t belong to the local context.
Not politics, just perspective.
Brett Mikkelson
Director, B.M. Investigations, Inc. – Private Investigations in Panama
TOP NEWS and TIDBITS:
Assembly Prepares to Debate Bill on Mandatory Use of Bioethanol in Fuels
The discussion about the country’s energy future is beginning to gain momentum. This Thursday, the Trade Commission of the National Assembly held a forum with specialists to analyze the benefits, risks, and challenges of the bill that seeks to reactivate the use of biofuels in Panama.
The initiative, presented last October by the Minister of the Presidency, proposes making it mandatory to incorporate 10% ethanol into gasoline distributed at more than 600 service stations nationwide. According to statements by the president of the Trade Commission, Deputy Ernesto Cedeño, and the president of the Assembly, Jorge Herrera, the bill’s first debate will begin after January 30.
Key points
• Regulation and permits: The National Energy Secretariat would be responsible for issuing authorizations for the production and use of ethanol.
• Interested companies: Four Panamanian companies have expressed their intention to invest in bioethanol production, although they are requesting a clear legal framework that guarantees the security of their investments.
• Impact on prices: The Energy Secretary stated that no significant increase in consumer costs is expected, although this will depend on the evolution of international prices of ethanol and gasoline.
• Expected benefits: The potential to boost agriculture in rural areas, generate employment, and contribute to environmental protection and public health was highlighted.
Companies Report Improved Sales and Greater Optimism for 2026
Companies closed December 2025 with clear signs of a recovery in sales and greater optimism looking ahead to 2026. The Positive Sales Trend reached 58%, the highest level recorded in the past 24 months, driven both by improved performance compared to the previous month and by favorable expectations for the coming year.
These results correspond to the 48th edition of ELEMENTE’s Economic Activity Report, prepared with the participation of 219 companies from different sectors.
Among the main findings of the report are:
§ 79% of companies expect to increase their sales in 2026.
§ 87% plan to maintain or increase their number of employees over the next 12 months; 34% anticipate new hires.
§ 80% of companies expect better economic conditions in 2026.
§ 74% project a better investment climate for the coming year.
By sector, activities linked to tourism showed the best performance, with hotels recording a positive sales trend of 92%, while the energy sector reported the lowest level, at 41%.
The report also identifies the main business challenges for 2026, including human capital management, commercial challenges, and issues related to government and regulation. As a new feature, a new monthly measurement was introduced—the Economic Confidence Level—which stood at 8.4 out of 10 in December.
U.S. to Suspend Immigrant Visas for Citizens of 75 Countries
The United States (U.S.) will suspend the processing of immigrant visas for citizens of 75 countries whose migrants—according to the State Department—benefit from social assistance funded by the American people.
The measure was officially announced by the government agency, which stated that the decision is part of a review of immigration policies and public spending controls.
U.S. to Suspend Immigrant Visas for Citizens of 75 Countries
Among the countries confirmed to be affected by this suspension are Somalia, Haiti, Iran, and Eritrea, although the full list of the 75 nations included has not yet been released.
The State Department did not specify the exact date the measure will take effect, nor whether humanitarian exceptions or special cases will be considered.
Contract Authorized for Technical Advisory Services on the Panama–David Train Project
The Cabinet Council approved Resolution 145-25, which authorizes contracting through an exceptional procedure between the National Railway Secretariat (SNDF) and the U.S. company AECOM USA, Inc. to provide technical and strategic advisory services for the development of 20% engineering of the Albrook–Sajalices segment and the consolidation of studies for the feasibility document of the Panama–David–Border Train Project, for an amount of US$4.17 million.
According to a statement from the Presidency of Panama, the consultancy will focus on the Albrook–Sajalices segment and will include the production and coordination of feasibility studies in accordance with the Methodological Guide of the Ministry of Economy and Finance, follow-up of the Environmental Impact Study, preparation of technical requirements for Phase 1, and support in the definition and structuring of the project. It also includes the integration of demand and supply studies to feed the financial and economic models, as well as the legal and regulatory review related to feasibility.
The SNDF reported that it has advanced the project’s master plan, as well as the scope of development of 20% engineering of a Phase 1 segment, the contracting of Environmental Impact Assessment Studies, Target Population and Market Analysis Studies, Financial Evaluation, and Economic and Social Evaluation.
The approved scope also incorporates the development of the 20% conceptual design of the fifth bridge over the Panama Canal, infrastructure considered critical for connecting the rail corridor, along with the preliminary estimation of CAPEX, follow-up of the geotechnical campaign, and analysis of the potential for private investment under the mechanisms allowed by the Panamanian regulatory framework.
In May 2025, President José Raúl Mulino announced the official alignment of the Panama–David railway project, which contemplates a 475-kilometer route from Panama Pacifico to Paso Canoas, on the border with Costa Rica. The project foresees an express route between Panama City and David, with an estimated travel time of three hours or less, speeds of up to 180 km/h for passengers and 100 km/h for freight, and a first phase between Panama Pacifico and Divisa, whose start of earthworks is planned for 2026, once technical studies and institutional procedures are completed.
The preliminary design includes 14 stations defined under criteria of intermodal connectivity, population concentration, and productive dynamism, with the aim of integrating passengers and cargo, reducing travel times and logistics costs, and consolidating the train as a national territorial and logistics connection axis.
The Cabinet note details that the project now requires a new consultancy that includes:
• Production and coordination of the project feasibility studies leading to the preparation of the feasibility document, in line with the requirements of the MEF Methodological Guide for Project Formulation and Evaluation.
• Design of the fifth bridge over the Panama Canal and estimation of CAPEX; technical support and monitoring of the Phase I geotechnical campaign.
• Follow-up of the Environmental Impact Study (EIS) and preparation of technical requirements for the Phase I segment.
• Development of complementary components aimed at the business plan; integration of demand and market supply studies to feed financial and economic models.
• Conducting a market study to identify key providers of railway and related services (including real estate and financial development aspects).
• Support in the definition and structuring of the project.
• Legal and regulatory review related to feasibility.
• Preliminary analysis and valuation of transit-oriented development potential at six main points and assessment of private investment potential through mechanisms allowed by Panama’s regulatory framework.
“This project, promoted by President José Raúl Mulino, consists of an ambitious initiative to develop a railway line connecting Panama City with David, in the province of Chiriquí, and its extension to the border with the Republic of Costa Rica. The aim is to improve Panama’s transportation infrastructure, facilitating the movement of people and cargo between these important regions of the country and access to international markets,” the statement notes.
My First Job: President Mulino Announces Opening of 5,000 Jobs
The President of the Republic, José Raúl Mulino, announced the creation of 5,000 new jobs through the “My First Job” program, as well as the opening of some 30,000 additional positions linked to infrastructure projects that will be carried out in different regions of the country.
The announcement was made during the question period at the weekly press conference, where the president referred to the government’s actions to boost job creation and reduce the unemployment rate, one of the main concerns of his administration.
Public works will drive employment
Mulino explained that for the current quarter, the Ministry of Public Works (MOP) expects to open around 30,000 jobs, thanks to the volume of road infrastructure projects being developed nationwide.
These opportunities, he said, will allow Panamanians from different provinces to access formal employment, energizing local economies and strengthening the labor market.
My First Job will generate 5,000 positions
The president also reported that, with the funds paid by the mining company to the government, 5,000 jobs will be created under the My First Job program, aimed at young people and those seeking their first work experience.
“The goal is for those funds to be used well and benefit those who need a first job to move forward in life,” Mulino emphasized.
Strategy without increasing the state payroll
The president stressed that the private sector is the main engine of job creation and said the government is betting on an aggressive investment program without increasing the state payroll.
The strategy focuses on executing public works and attracting foreign investment as mechanisms to stabilize unemployment in a sustained manner.
“The entire process of investing state resources to produce projects will generate jobs that will help lower the index that concerns me; it is something we are solving little by little,” the president stated.
Moody’s Ratings Projects a USD 3 Trillion Investment to Address the Growth of Data Centers
Moody’s Ratings projects a global investment of at least US$3 trillion over the next five years to support the rapid growth of data center capacity and the advance of artificial intelligence, driven mainly by investments from major technology hyperscalers.
According to the 2026 Data Center Outlook, investment by the six U.S. hyperscalers reached nearly US$400 billion in 2025 and is on track to rise to US$500 billion in 2026 and US$600 billion in 2027, reflecting the acceleration of spending on digital infrastructure.
The report notes that data center capacity continues to grow at double-digit rates globally, while tenants are quickly monetizing new space, largely thanks to pre-leasing contracts with major technology companies, which reduces the risk of idle capacity.
However, Moody’s warns that development faces significant constraints, including regulatory risk and limitations in access to energy—factors that are slowing projects in some markets and generating local opposition due to electricity and water consumption.
The document also indicates that tenants are assuming greater risk to speed up project completion timelines, in a context of rising construction risks, high costs of specialized labor, and supply chain pressures.
Another relevant challenge identified by the rating agency is the high cost of graphics processing units (GPUs), which is leading developers and users to seek financing alternatives beyond traditional sources, given the scale of capital required for AI-oriented infrastructure.
According to Moody’s, these factors will continue to shape the global data center market in the coming years, in an environment where speed to market, access to power, and counterparty strength will be decisive in sustaining the sector’s growth.
