News

Closely watched investment analyst Moody’s Investors Service reconfirmed its positive outlook for Panama’s economy in a recent report, citing the country’s solid fundamentals. 

Moody’s affirmed Panama’s sovereign risk rating at Baa3, which is within investment grade. In making the announcement, Moody’s cited a long range of positive factors in the outlook, including steady growth, low exposure to international risk, and the solid revenue stream provided by the Panama Canal.

While Moody’s kept Panama’s forecast as negative, reflecting short-term fiscal challenges, the overall outlook was positive.

“Moody’s confirmation of the investment grade is a clear sign of international confidence in Panama’s economic potential and in the government’s commitment to responsible management of public finances,” Minister of Economy and Finance Felipe Chapman told reporters.. 

Moody’s specifically cited Panama’s resiliency in overcoming tough conditions. Panama has demonstrated the “political will” to make reforms, such as strengthening the pension system and making budget cuts, the agency said.

Moodys also highlighted that Panama’s GDP, the ultimate economic indicator, continues to grow. In the first quarter of  2025, the GDP increased 5.2%, a nice rebound from last year. After suffering through drought conditions, the Panama Canal has also rebounded with solid earnings. 

“We will continue to promote reforms that strengthen fiscal credibility, improve the efficiency of public spending ,and promote a more equitable economy,” Chapman said.