News

By Eddie Montes.

Citing Panama’s strong economic growth and infrastructure investment, the prestigious Fitch rating service has reaffirmed Panama’s investment grade BBB rating with a stable outlook.

The rating service based its recommendation on “a strong and stable macroeconomic performance that has led to a sustained increase in per capita income,” based on the country’s economic and fiscal policies. Coupled with the country’s strong assets, such as the Panama Canal, which support “a high degree of investment,” Fitch says.

The ratings play a key role in Panama’s ability to borrow capital and provides the international financial community with a barometer of the health of the economy. The latest stable outlook demonstrates that Panama is on the right track and investors can feel secure in the country’s prospects.

Panama’s economy grew by 5.5 percent in 2017, compared to 2016, due a “sustaine1d boost to infrastructure investment, increased traffic and tonnage through the expanded Canal,” the Ministry of Economy and Finance said in a statement.

Fitch expects Panama’s growth to continue at between 5 and 6 percent a year, which may surpass earlier projections. “The rating agency assumes that the government will again meet its objective of the non-financial public sector deficit in 2018 projected at 0.5 percent while stressing the importance of maintaining fiscal discipline,” according to coverage in El Economista.