The low dynamism in the commercial activity and in the construction, will influence so that in 2019 the growth of the Panamanian economy is of 4.5% and not 5%, which would result in a rise in the fiscal deficit.
The Chamber of Commerce, Industry and Agriculture of Panama (Cciap) expects that by 2019 the country's economy will grow 4.5%, an estimate that is lower than that of the Ministry of Economy and Finance (MEF) which forecasts that economic growth will reach 5%.
The deficit of the Central Government's Total Balance up to March 2019 is $1.267 million, 1.8% of GDP, above the 1.4% recorded at the end of the first quarter of 2018.
Total revenues with fiscal documents of the Central Government up to March 2019, totaled $1,618 million, with a 7.1% decrease with respect to March 2018, explains a report of the Ministry of Economy and Finance.
The Panamanian government issued $550 million of sovereign debt in the international market, expiring in 2050 and with an average yield of 4.92%.
According to information from the country's authorities, the resources collected will be used to partially finance the investment plan contemplated in the General State Budget for fiscal year 2018.
Exporters resent the effects of five continuous days of demonstrations, blockades and widespread insecurity on the roads of Costa Rica.
Before the strike, which was started a few days ago by unions representing the country's public institutions, the Chamber of Exporters of Costa Rica (Cadexco) denounced the fact that companies in the sector are facing multiple difficulties in exporting their products.Puerto Moín, the main outlet for exports, is onlyoperating six hours a day, leaving close to 12,000 tons per day unable to be shipped, which is estimated to be equivalent to almost $10 million in daily sales abroad.
"Public debt in terms of simple average for the Central American region will continue growing, reaching 43.1% of GDP in 2018, after having registered 42.5% in 2017."
The Central American Institute of Fiscal Studies (Icefi) estimates that for the current year the size of public expenditure of the Central Government in relation to the respective Gross Domestic Product of each country will be 21.4% in Costa Rica, 20.4% in El Salvador, 20% in Honduras, 18.4% in Nicaragua, 17.6% in Panama and 12.1% in Guatemala.
Like lemmings running towards a cliff, Costa Rica repeats the kind of actions that underscore the definition of a society incapable of stopping on the road to a terminal crisis.
In the first semester, the fiscal deficit of the non-financial public sector was 1.6% of GDP, registering an increase of almost $1 billion with respect to the same period in 2017.
From a statement issued by the Ministry of Economy:
The results of the Fiscal Balance of the Non-Financial Public Sector (SPNF), corresponding to the first semester of 2018, were presented by the Minister in charge of Economy and Finance, Eyda Varela de Chinchilla, at a press conference, which showed income totals in the order of B /. 5,723 million and total expenses of B /. 6.785 million.
Panama's GDP grew by 5.4% in 2017, with transport, storage and communication activities standing out as the most dynamic, as a result of the Canal expansion.
From a statement issued by the Ministry of Finance in Panama:
March 27, 2018The Minister of Economy and Finance, Dulcidio De La Guardia, presented today before the plenary session of the National Assembly of Deputies a report on the General Treasury Account corresponding to fiscal period 2017.
In one of the regions that receives the least amount of taxes in the world, the tax burden remained relatively stable in 2017.
From the section Fiscal Outlook for Central America, from the report "Macro-fiscal Profiles: 9th edition", by the Central American Institute of Fiscal Studies (Icefi):
In 2017, the fiscal trajectory of countries in the region remained relatively constant with respect to what was observed in 2016.The following are highlighted as policy orientations: a) lack of political agreements, which transformed into a real impossibility of increasing tax revenues through tax reforms or strengthening the administrative capacity of tax administrations, and b) implementation of austerity programs, which in several countries had a greater impact on capital expenditures, in order to avoid an increase in the fiscal deficit and public sector debt.
Fitch Ratings has ratified the investment grade of the Republic of Panama at BBB with a stable outlook, arguing a strong and stable macroeconomic performance.
From a statement issued by Fitch Ratings:
Fitch Ratings-New York-16 February 2018: Fitch Ratings has affirmed Panama's Long-term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BBB' with a Stable Rating Outlook.
Last year, the Central Government's current expenditures amounted to $6.712 billion, 8.5% more than in 2016, while capital expenditures totaled $3.730 billion, or 6.4% of GDP.
From a statement issued by the Ministry of Finance:
As of December 2017, the total revenues of the Central Government (CG) were B /.
Citizens are less than two months away from going to a ballotage to elect a new government without having discussed the country's priority issues, even though some of them require urgent attention and a deep national discussion in order to find a solution.
In the third quarter of the year, the fiscal deficit was 2.4% of GDP, with a 6% increase in total expenditures compared to the same period in 2016.
A report presented by the Ministry of Finance of Panama shows that the deficit of the non-financial public sector amounted to $1.43 billion at the end of the third quarter, registering an increase of $585 million.
The rating agency has raised the outlook from stable to positive and reaffirmed the Baa2 investment grade rating, arguing that economic growth will continue to rise and will remain above the level of its peers.
From a statement issued by Moody´s:
New York, September 29, 2017 -- Moody's Investors Service has today affirmed the Government of Panama's issuer rating and senior unsecured bonds at Baa2 and senior unsecured shelf at (P)Baa2.
Total revenues from the central government grew by 2% compared to the same period in 2016, while total expenditures fell by 2.1%.
From a statement issued by the Ministry of Economy and Finance:
Total revenues of the Central Government for the first half of the year amounted to B/3,537 million, that is to say they increased by B/.64 million or 1.9% with respect to the same period in the previous year, explained the Minister Of Economics and Finance, Dulcidio De La Guardia today in press conference.