A top official with the Moody’s Investors Services this week confirmed the ratings agency’s positive outlook on the Panama economy.
Deputy vice president and analyst of Moody’s Sovereign Group Renzo Merino told El Capital Financiero that turmoil in the world is unlikely to derail growth in Panama. Moody’s continues to see Panama’s economy as “stable” and predicts a 4 to 4.5 percent expansion this year alone.
The coronavirus, the biggest unknown facing the global economy, may impact markets around the world, but preliminary studies suggest Asian economies will be the most affected, he told the paper. Countries that export large quantities of raw materials to Asia, such as Brazil, Suriname, Chile, and Peru, will face more struggles if the China economy slows down, he said.
Panama’s economy is backed by strong fundamentals that are less likely to be affected by Asian troubles, trade issues or any of the other potential problems for economies in other countries. He cited the “reactivation of the construction sector due to the start of the execution of infrastructure projects,” such as the third line of the Panama City metro and the fourth bridge over the Canal, as well as the Cobre Panama mining operation as among the factors driving Panama’s economy. None of those projects will be slowed by overseas issues.
Investors tell us all the time that the consistency and stability of Panama’s financial sector is one of the many reasons they choose to put their money into Panama’s real estate. The fundamentals are strong in Panama, in sharp contrast to many markets around the world.
The Moody’s comment is another sign that Panama is maturing as a market, with the type of annual performance that earns praise from third-party analysts.