GDP growth in 2023 was strong (7.3 percent), exceeding expectations for the third year in a row since the downturn in 2020. Unemployment is near pre-crisis levels while inflation has moderated. Government bond spreads increased in the second half of 2023 as markets became concerned that failure to meet the fiscal targets would lead to a loss of investment grade status. However, the overall fiscal deficit dropped from 4.0 percent of GDP in 2022 to 3.0 percent in 2023, and the Social and Fiscal Responsibility Law (SFRL) target was met. Following a Supreme Court ruling that the new contract with copper mine Minera was unconstitutional, the government ordered the closing of the mine. Banks are, on average, well capitalized and liquid, and stay broadly resilient in an adverse scenario.
- Format
- Paper
- Frequency
- regular
- ISBN
- 9798400279867
- ISSN
- 1934-7685
- Pages
- 103
- Published in
- United States of America
- Series
- Country Report No. 2024/188
- StockNumber
- 1PANEA2024001
Table of Contents
- Background 11
- Strong recovery but FIscal SLIppages and SOCIAL unrest 11
- outlook AND RISKS 18
- Authorities’ Views 20
- PolicIes 21
- A. Strengthening Fiscal Sustainability 21
- Authorities’ Views 25
- B. Strengthening Financial Integrity 25
- Authorities’ Views 26
- C. Strengthening Financial Sector Resilience 26
- Authorities’ Views 30
- D. Sustaining Convergence 30
- FDI 32
- Human Capital and Governance 33
- Other Reforms 36
- Authorities’ Views 36
- E. Improving Statistics 37
- Authorities’ Views 38
- Staff Appraisal 38
- A. Social Assistance and Subsidies -1
- A. Contribution of the Mine to Panama’s Economy -1
- B. Arbitration -1
- FOR IMMEDIATE RELEASE -1
- 2024 PAN Info Annex.pdf -1
- fund Relations 98
- Implementation of HIPC Initiative: Not applicable 99
- Implementation of Multilateral Debt Relief Initiative (MDRI): Not applicable 99
- Implementation of Catastrophe Containment and Relief (CCR): Not applicable 99
- Safeguards Assessment 99
- A first-time safeguards assessment of the National Bank of Panama (NBP), conducted in connection with the RFI purchase on April 15, 2020, was completed in September 2020. The assessment found strong institutional arrangements, including with respect t... 99
- Non-Financial Relations 99
- Exchange Rate Arrangement 99
- Last Article IV Consultation 99
- Financial Sector Assessment Program (FSAP) 99
- Technical Assistance 99
- Resident Representative 100
- Gerardo Peraza (based in Guatemala) is the Regional Resident Representative for Central America, Panama, and the Dominican Republic. 100
- relations WITH OTHER FINANCIAL INSTITUTIONS 101
- MAIN WEBSITES OF DATA 102
- Blank Page -1
- 2024 PAN Supplement.pdf -1
- Blank Page -1
