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The Panama Canal is drying up

Today, Explained

Impacts of Panama Canal Drying Up and Proposed Solutions

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The Panama Canal drying up not only affects consumers globally by increasing prices but also hits Panama's economy hard as the canal is a cornerstone, generating $4.32 billion in revenue in 2022. Disruptions in the canal lead to uncertainty and risks for the country’s economy and related industries. To address the drying up issue, a proposed solution is to dam up the Indio River to provide more water to the Panama Canal by drilling tunnels through a nearby mountain. However, this solution may face challenges as it could be unpopular among communities due to environmental and social impacts.

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