The Minister of Economy and Finance aims to reduce Panama's fiscal deficit from 3.88% in 2025 to 1.5% in 2030, while also seeking to steadily decrease the debt/Gross Domestic Product (GDP) ratio. By the end of 2024, the country recorded a deficit of 7.4% of GDP, which amounts to 6.416 billion dollars when comparing revenues to expenditures.
According to the minister, it is essential to implement measures that contribute to a gradual reduction of the fiscal deficit to achieve a more solid and sustainable economy in the long term. In this regard, it is anticipated that strategies will be developed to allow for more efficient management of public resources and greater transparency in the State's financial management.
In the minister's words, "it is crucial to move towards greater fiscal stability that guarantees the economic well-being of the country and strengthens investor confidence." To achieve this objective, a comprehensive plan is being considered that includes reviewing public expenditures, generating new sources of income, and optimizing public debt.
Moreover, it is expected that these measures will not only contribute to reducing the fiscal deficit but also allow for a gradual decrease in the debt/GDP ratio, which in turn will strengthen Panama's financial health and its position in international markets. Therefore, the Government is committed to working towards responsible and sustainable fiscal management that promotes the country's long-term economic development.
