Standard & Poor’s (S&P) has reaffirmed Panama’s investment-grade rating of BBB- with a stable outlook, following its evaluation of the country's economic and fiscal performance for 2024 and 2025. In its report, the agency noted that the Panamanian economy maintains resilience and a diversified structure supported by sectors such as logistics, global services, construction, energy, and technology. The rating agency explained that its decision is based on the deficit reduction path established under the Social and Fiscal Responsibility Law, the adoption of a more prudent debt policy, and advances in fiscal governance, including improvements in spending, digital processes, and budgetary transparency. S&P also projects that Panama will preserve macroeconomic stability and continue to increase revenue to sustain manageable debt levels in the medium term. Following S&P's action, the Government stated that it will continue to execute its strategy to gradually reduce the deficit to a target of 4% of GDP by 2025, strengthen debt management, boost strategic investments, and advance the modernization of the state.
