Moody's has upgraded Panama's sovereign rating from Baa2 to Baa1 - the highest in country’s its history - and improved the outlook from positive to stable, arguing that expectations remain favorable amid predictions that the GDP will grow 5% this year.
Moody's expects that as growth picks, the new government, which will take office in July, will continue to reduce the fiscal deficit.
Both Moody's, which announced its Baa1 rating to Panama last Friday, and Standard & Poor's and Fitch, have highlighted compliance with the fiscal social responsibility law as one of the factors for the country to maintain a good grade.
Moody's expects that as growth recovers in 2019, the new government, which will take office in July, will continue to reduce the fiscal deficit in the coming years,
The economist Rolando Gordón predicts that the GDP will grow 5% this year and warned that the next government will have the challenge of complying with fiscal discipline reports La Prensa.