The agency highlights the country's macroeconomic stability, while noting a slight deterioration of fiscal indicators in recent years.
From a press release issued by Moody's:
New York, October 25, 2016 -- Panama's Baa2 rating with a stable outlook reflects the country's strong economy and its broad macroeconomic stability, says Moody's Investors Service. This buoyant growth will help Panama's government reduce the nation's fiscal deficit over the coming years.
In August, the monthly index of economic activity (IMAE) grew 4.4 percent compared to August 2015. The average annual variation stood at 4.8 percent and the cumulative growth from January to August was 4.4 percent.
In the second quarter of 2016, economic activity measured by the estimate of real gross domestic product, grew by 3.4% (similar to that recorded in the second quarter of the previous year), driven mainly by the dynamism observed in private consumption spending.
The ICEFI highlighted the achievement in reducing the fiscal deficit, but noted "weaknesses in access to information and opacity in the management of public resources."
From a statement issued by the ICEFI:
The Icefi is concerned about the tax changes in recent years because part of its impact is an increase in the regressivity of the tax system, less fiscal space for social spending, as well as a latent opacity in the discussion on the use of State property and new fiscal institutions.These negative effects detract from the achievements made in terms of macro-fiscal stability in the medium term, we warn, this will increase democratic ungovernability, public distrust and restrict the scope for sustainable, sustained and inclusive economic growth.
Despite latent risks in the fiscal area, the Central Bank estimates growth of 2.4% for GDP, helped by an increase in consumption and low inflation.
Authorities at the Central Reserve Bank of El Salvador warned that the growth forecast could be affected by possible increases in interest rates or in international oil prices.Political polarization and the delicate fiscal situation also constitute threats to the expected growth.
In the first half of the year the monthly economic activity index recorded a rise of 4.1%, driven by the performance of mining and construction.
From a statement issued by the National Statistics Institute:
The Monthly Economic Activity Index (IMAE by its initials in Spanich) in the Republic for January-July 2016, measured in terms of the original series at 1996 prices, grew by 4.13 percent compared to the same period in 2015.The categories of economic activity that showed positive levels for the aforementioned period were: mining and quarrying, construction, electricity and water, transport, storage and communications, public administration, hotels and restaurants.
In the first quarter the economy grew by 5.2% compared to the same period in 2015, driven internally by the activities of financial intermediation and construction.
From a statement issued by the General Comptroller:
The performance of the Panamanian economy in the second quarter of 2016, measured by Gross Domestic Product Quarterly (PIBT), showed an increase of 5.2 percent compared to the same period last year.The PIBT valued at 2007 prices (in chained volume measures), recorded an amount of B/.9,191.8 million for the estimated quarter, which corresponds to an increase of B/.450.7 million compared to the same quarter in 2015.
Key representative/s from the Guatemalan Exporters’ Association last 13-15 October attended the 8th TPO Network World Conference to exchange ideas and best practice around stimulating export-led economic growth and meeting the urgent challenges in the sector.
PRONicaragua, is the Nicaraguan Investment Promotion Agency, established in 2002. We are a non-profit, public-private institution whose mission is to generate economic growth and job creation in Nicaragua by attracting high-quality foreign direct investment. The Agency provides complimentary support services to qualified investors seeking investment opportunities in our country.
Operates in Nicaragua
Phone: (505) 2270 6400
Caribbean-Central American Action (CCAA) is a private, independent organization that promotes private sector-led economic development in the Caribbean Basin and throughout the Hemisphere.
Operates in Panama, Nicaragua, Honduras, Guatemala, El Salvador, Costa Rica and Caribbean Community
Phone: (202) 331-9467