Can private-sector investment finance help reduce the income gap in Panama?
This is the first Private-Sector Investment Finance project in Panama. With huge income disparities being a significant developmental issue in the country, the promotion of MSMEs is expected to contribute to reducing the income gap by boosting employment growth.
Will Panama's economic growth rebound in -?
Panama's economic growth is expected to rebound gradually in -, recovering from an estimated +2.5% in to an average of +3.5%. This growth will be supported by base effects following the closure of Cobre Panamá, the country’s second‑largest export source after the Canal, and investment in the construction sector.
Will Panama's fiscal outlook worsen?
Panama's fiscal outlook is expected to worsen as the government's inability to secure congressional backing for more rapid fiscal consolidation underscores the legislative hurdles President Mulino is likely to encounter in advancing his agenda.
Will public protests affect Panama's logistical reputation?
Public protests may also interfere with Panama’s logistical reputation. In late , a massive protest movement erupted over a newly enacted law regularizing the contract of a major copper mine, bringing the economy to a standstill.
Why is Panama's fiscal deficit so high?
Despite these strengths, fiscal pressures are mounting. Falling revenues and rising expenditures pushed Panama’s fiscal deficit to 7.1% of GDP in the first nine months of , the highest on record, including during the pandemic.
World Bank Document
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Signing of a Loan Agreement with Panama-based
This is the first Private-Sector Investment Finance project in Panama. With huge income disparities being a significant developmental issue in the country, the promotion of MSMEs is expected to contribute to reducing the
World Bank
World Bank
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World Bank Document
A. Country Context Despite Panama’s high economic growth, social inclusion and equity have lagged. Strong growth over the past two decades, fueled by large investment projects and
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