The rise in international oil prices is making fuel more expensive, pressuring inflation, and already promises to increase the cost of state subsidies, at a time when the country is dealing with a public debt of over $60 billion.Minister of Economy and Finance, Felipe Chapman, warned that the impact of the conflict could alter economic growth projections, which some investment banks place at up to 5%.This has a direct effect on the lives of citizens.This helps, and a lot, but it implies greater public spending and leaves fewer resources available for other country needs.This very issue was on the agenda for Minister Chapman on Wednesday, who attended an economic forum organized by the Panamanian Association of Business Executives (Apede).If the price of oil goes up, so does gasoline, transportation, and imported products can also become more expensive due to increased freight and input costs.Although the government keeps tariffs like public transportation fares frozen, that relief does not reach everyone.In his view, it was not a surprise and said that media headlines should have been different.The minister pointed out that the debt reached the point “exactly as predicted in the government's strategic plan.”Let's remember that this increase, according to the Ministry of Economy, is not only due to new debt, but also to what they call an active management of the liabilities portfolio.You may also be interested in:Public debt exceeds $60 billion: what's behind the increaseUnemploymentDuring his speech, Chapman also revealed that “every day” he receives someone interested in working in the public sector after being rejected by the private sector for lacking the necessary “skills.”He said this reality is the result of an educational and technical training system that does not allow professionals to take advantage of the opportunities the present offers.He also said you may be interested in:Unemployment increases in Panama; reached 10.4%Chapman indicated that this increase in unemployment is due, in large part, to an increase in the economically active population.Approximately 227,302 people were found unemployed.The figures indicated a difficult labor insertion for young people, with a report of 72,000 young people seeking employment unsuccessfully between 2024 and 2025.He spoke about subsidies, unemployment, and debt levels.At the end of February, debt rose to $60,059 million, according to a report from the Ministry of Economy and Finance (MEF).According to Chapman, this figure “was announced.”The conflict in the Middle East is being felt in the Panamanian economy.Private drivers and businesses do face these increases directly, and often these costs end up being reflected in consumer prices.To avoid immediate increases, the state resorts to increasing subsidies.
