Panama: 2020 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, April 21, 2020
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- Panama: 2020 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: April 21, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513541594.002
Growth outlook and risks
- Growth is expected to recover to 4.8 percent in 2020.
- The balance of risks is tilted to the downside.
- Assessment prepared before coronavirus disease 2019 became a global pandemic and resulted in unprecedented strains in global trade, commodity and financial markets.
Fiscal position and policy recommendations
- Large fiscal imbalances exist and a gradual fiscal consolidation is recommended to address them while being mindful of the weak economy.
- Tax and customs administration reforms are needed to address the shortfall in revenues and provide room for public investment and social spending.
Recent economic performance and external sector
- The economic slowdown, which began in mid-2018 due to a construction strike, extended into 2019.
- The external current account deficit narrowed and remained adequately financed by foreign direct investment.
Social pressures and migration
- As the economic situation in Venezuela continues to deteriorate, an increasing number of Venezuelans have migrated to Panama, creating additional social pressures.
Source: Panama: 2020 Article IV Consultation-Press Release; and Staff Report (April 21, 2020).
Content in this bundle
- 1panea2020001