On May 4，2014，the day of Panama’s general election，former Vice-President Mr. Varela of Partido Paname？ista won unexpectedly to be the new president. The new government faces challenges on political and economic fronts. Owing to the delayed Panama Canal expansion project and other factors，Panama’s economic growth has slowed，but it is still one of the fastest-growing countries in the region. Although the social situation remained stable in general，strikes for higher wages occurred from time to time in this electoral year. In the aspect of diplomatic relations，2014 has been considered a complicated year. Thanks to the new government going to power，foreign relations between Panama and neighboring countries have been improved.