## Panama: Selected Issues

_IMF Staff Country Reports, April 21, 2020_

## Source details

**Canonical URL:** [Panama: Selected Issues](https://www.imf.org/en/publications/cr/issues/2020/04/21/panama-selected-issues-49355)

## Other formats

- [Markdown version](/en/publications/cr/issues/2020/04/21/panama-selected-issues-49355/index.md)
- [Structured JSON version](/en/publications/cr/issues/2020/04/21/panama-selected-issues-49355/index.json)
- [Bundle manifest](/en/publications/cr/issues/2020/04/21/panama-selected-issues-49355/bundle-manifest.json)

## Bibliographic details
- Published: April 21, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513541679.002

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### Summary and strategic context
- Panama stands at a crossroad between taking the leap to become an advanced economy or getting stuck in the middle-income trap.
- The beginning of a new administration provides a window of opportunity to initiate and implement ambitious reforms.
- This Selected Issues paper takes stock of fiscal issues in Panama and proposes policy options.

### Key fiscal findings and priorities
- The new administration’s fiscal agenda should feature a comprehensive reform of tax and customs administrations.
- The fiscal agenda should include a review of tax incentives and exemptions and consider steps toward a broader tax policy reform.
- Efforts to further strengthen the fiscal framework with the appointment of the members of the Fiscal Council should continue going forward.
- Panama should adopt best practice fiscal accounting and reporting methods.
- A comprehensive assessment and management of fiscal risks is necessary to create buffers and safeguard public finances given fiscal policy’s exclusive stabilization role.

### Policy recommendations (enumerated)
- Comprehensive reform of tax administration.
- Comprehensive reform of customs administration.
- Review of tax incentives and exemptions.
- Consideration of broader tax policy reform.
- Appointment and continued strengthening of the Fiscal Council membership.
- Adoption of best practice fiscal accounting and reporting.
- Comprehensive assessment and management of fiscal risks to build buffers and safeguard public finances.

### Thematic coverage (subjects and keywords as listed)
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Financial institutions, Fiscal policy, Housing prices, Mortgages, Prices, Real estate prices, Revenue administration
- Keywords include: academia Panamá para el Futuro, Anti-money laundering and combating the financing of terrorism (AML/CFT), bank, bank resolution framework, Caribbean, Central America, CFT cross-agency cooperation, CFT regime, CFT statistics, CR, Europe, Global, government, Housing prices, innovation Panama, ISCR, labor productivity growth, lending, Mortgages, Panama, property price, Real estate prices, regime

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## Content in this bundle

- **Panama: Selected Issues; IMF Country Report No. 20/125; March 9, 2020**
  - [Panama: Selected Issues; IMF Country Report No. 20/125; March 9, 2020 (Markdown version)](/-/media/files/publications/cr/2020/english/1panea2020002.pdf.md){rel="alternate" type="text/markdown"}
  - [Panama: Selected Issues; IMF Country Report No. 20/125; March 9, 2020 (PDF)](/-/media/files/publications/cr/2020/english/1panea2020002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2020/04/21/panama-selected-issues-49355_