Panama: 2024 Article IV Consultation-Press Release; and Staff Report

International Monetary Fund

No 2024/188, IMF Staff Country Reports from International Monetary Fund

Abstract: GDP growth in 2023 was strong (7.3 percent), exceeding expectations for the third year in a row since the downturn in 2020. Unemployment is near pre-crisis levels while inflation has moderated. Government bond spreads increased in the second half of 2023 as markets became concerned that failure to meet the fiscal targets would lead to a loss of investment grade status. However, the overall fiscal deficit dropped from 4.0 percent of GDP in 2022 to 3.0 percent in 2023, and the Social and Fiscal Responsibility Law (SFRL) target was met. Following a Supreme Court ruling that the new contract with copper mine Minera was unconstitutional, the government ordered the closing of the mine. Banks are, on average, well capitalized and liquid, and stay broadly resilient in an adverse scenario.

Keywords: deficit target; CFZ import; staff appraisal; IMF staff calculation; Superintendencia de Bancos de Panama; unit of account; Inter-American Development Bank; Anti-money laundering and combating the financing of terrorism (AML/CFT); Public sector; Central America; Caribbean; Global (search for similar items in EconPapers)
Pages: 103
Date: 2024-06-27
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