## Panama: Staff Report for the 2004 Article IV Consultation

_IMF Staff Country Reports, January 6, 2006_

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## Bibliographic details
- Published: January 6, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451830859.002

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### Executive summary
- The medium-term outlook is encouraging, assuming implementation of the authorities’ fiscal program, which should put the public debt ratio on a steadily declining path.
- The banking system experienced a substantial recovery in 2003–04, and the financial system remains essentially sound, with favorable performance indicators and a strong regulatory framework.
- An expansion of the Panama Canal at an estimated cost of more than 30 percent of GDP could, if approved in a national referendum, have a far-reaching impact on the economy’s growth prospects.

### Financial sector assessment
- Banking system: experienced a substantial recovery in 2003–04.
- Financial system soundness: characterized as "essentially sound" with favorable performance indicators.
- Regulatory framework: described as strong.

### Fiscal outlook and public debt
- Baseline assumption: implementation of the authorities’ fiscal program.
- Public debt trajectory: fiscal program "should put the public debt ratio on a steadily declining path."

### Panama Canal expansion — scenario and implications
- Project estimate: expansion at an estimated cost of more than 30 percent of GDP.
- Conditionality: potential impact contingent on approval in a national referendum.
- Macroeconomic implication: could have a far-reaching impact on the economy’s growth prospects if approved.

### Key statistics and numerical points (as reported)
- Recovery period for banking system: 2003–04.
- Canal expansion estimated cost: more than 30 percent of GDP.

*Source: Panama: Staff Report for the 2004 Article IV Consultation (IMF Staff Country Reports).*

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/panama-staff-report-for-the-2004-article-iv-consultation-18799_