JP Morgan Raised its Economic Forecast for Panama for 2024

The Government of Panama reported that JP Morgan raised its forecast for this year’s economic growth from 3% to 3.5% and reduced the risk of credit degradation for the country, all good things. JP Morgan’s analysis “improved the gross domestic product (GDP) growth forecast for this year, raising it from 0.5% to 3.5% year-on-year,” says a statement from the Panamanian Presidency. The official source cites that the JP Morgan report also mentions that “positive news is beginning to emerge and we now think that the timing of a possible (credit) downgrade is no longer being considered as the chances of it happening are lower.”  Moody’s maintains the rating at Baa3 with stable outlook.  The good news supported by JP Morgan is the easing of ship transit restrictions in the Panama Canal before the arrival of the rains, after the severe drought that forced the number of daily crossings to be reduced to 22, which are now above 30, which was a strong blow to national finances.

JP Morgan reduces risk of credit degradation for Panama and raises economic growth forecast