## Panama: First Review Under the Arrangement Under the Precautionary and Liquidity Line-Press Release; Staff Report; and Statement by the Executive Director for Panama

_IMF Staff Country Reports, August 2, 2021_

## Source details

**Canonical URL:** [Panama: First Review Under the Arrangement Under the Precautionary and Liquidity Line-Press Release; Staff Report; and Statement by the Executive Director for Panama](https://www.imf.org/en/publications/cr/issues/2021/08/02/panama-first-review-under-the-arrangement-under-the-precautionary-and-liquidity-line-press-463338)

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## Bibliographic details
- Published: August 2, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513592794.002

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### Executive summary and macroeconomic outlook
- Macroeconomic vulnerabilities have declined since the peak of the COVID-19 pandemic in 2020.
- The economy is expected to rebound swiftly in 2021 as activities return to normality and the population is increasingly vaccinated.
- External imbalances are contained.
- The fiscal position is gradually consolidated as the authorities remain committed to the revised fiscal rule, which will ensure a declining path for the NFPS debt.
- The outlook remains subject to elevated risks, including uncertainties arising from possible more contagious variants of the COVID-19 virus.

### Key domestic risks and vulnerabilities
- Setbacks in implementing the FATF action plan to exit the grey list.
- Delays in fiscal consolidation.
- A prolonged pandemic that could exacerbate socioeconomic hardship and derail economic policies and the recovery.

### Policy focus and implications
- Continued commitment to the revised fiscal rule to secure a declining path for NFPS debt.
- Need to prioritize implementation of the FATF action plan to address AML/CFT vulnerabilities.
- Monitor pandemic developments and vaccination progress to support the projected swift rebound in 2021.

### Subjects and keywords (as listed)
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), COVID-19, Credit, Crime, External debt, Health, International organization, Monetary policy, Money, Public debt
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banco Nacional de Panamá, Central America, COVID-19, Credit, GDP contraction, Global, macroeconomic policy framework, PLL qualification criteria, PLL review, PLL's goal, policy support

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_Source: https://www.imf.org/en/publications/cr/issues/2021/08/02/panama-first-review-under-the-arrangement-under-the-precautionary-and-liquidity-line-press-463338_