A report from the Intelligence Unit (IU) of the prestigious  Economist  magazine warns that the government of Laurentino Nito Cortizo , needs to  quickly restore the public confidence or risk social unrest.

n the report entitled "The risk of social unrest increases as the pandemic persists," the publication looks at how the current administration has handled the pandemic from a political, economic, and social point of view.

Released on, Thursday, July 16,  the document says that after making a great effort at the start of the pandemic, Cortizo runs the risk of becoming a worn-out political force as infection rates spiral, no response inspiring economic growth, corruption allegations amid the crisis, and deep divisions in the ruling PRD party.

It e mentions that Panama was one of the first Latin American countries to close schools and introduce guidelines for staying at home with one of the strictest rules in the region, however, four months later, public confidence in the current administration “has crumbled "

The IU   report recalls that by not accompanying the severe measures with immediate and effective economic relief for poor households, confinement "strict was impractical and ultimately led to the spread of infection."

"The economy has been severely hit," it warns and cites the INEC monthly economic activity index, which reported that economic activity fell by 35% in  April, compared to the same month of 2019.

It also points out that more than 270.000 labor contracts are suspended.

The  Intelligence Unit forecasts that even as activity picks up in the second half of this year, real GDP will contract by 6%, with risks tilted to the downside if setbacks in government  reopening plan continue

Corruption
The Economist mentions that although the other Latin American countries have failed to prevent the spread of the virus, with the exception of Uruguay, and Cuba, in Panama the disappointment with the handling of the crisis by the government is aggravated by the accusations of alleged corruption by some of its members.

"Vice President José Gabriel Carrizo, and the Minister of Public Works, Rafael Sabonge, have been the subject of campaigns on social networks demanding their resignations, after hospitals and health equipment were purchased at inflated prices," the publication states.

However, both remain in their positions, adds the report, to later say that the same did not happen with Rosario Turner, who was serving as Minister of Health.

The perception is that she was unfairly dismissed" due to the PRD's internal policy, or possibly as a result of her recent refusal to sign a letter allowing the return of the children of former President Ricardo Martinelli (2009-2014), in a humanitarian flight.

It says that the profound differences between two factions of the PRD are clear and could be affecting appointments and decision-making in Cortizo's cabinet.

This has led to speculation that the former president, Ernesto Pérez Balladares  could run for the presidency of the PRD in the internal elections next year. "He would be a unifying figure, and he has a reputation for being competent, though not for respecting democratic institutions." 

It  mentions the legal battle he has with La Prensa "an independent local newspaper"  from whom he kidnapped accounts as a result of an ongoing lawsuit.