It seems like a perfect storm of more dry years, deforestation (although not much in the last decade), more water demand from the city, and more electric demand on the dams.
I hope my prior comment isn’t taken as derogatory toward Panama. Based on when I was last in Panama they’ve done a great job of governance. At least compared to when the Canal Zone was still an American territory. I think, overall, we Americans by 1970s ended up being detrimental to the growth and development of Panama. While it bothered me to lose my hometown I can see the Treaty was the right thing to do.
I didn’t take it that way. I think Panama owes its existence, the canal, and its democracy to the United States. Also the close ties have been a huge cultural and economic boon.
Panama has developed nicely since Noriega was deposed.