Panama will end the year meeting the deficit target of 4 percent that we announced, said President José Raúl Mulino at his weekly press conference. He added that the reduction compared to 2024 «is a clear sign of fiscal discipline, it has been very tough,» and noted that the country is beginning to regain investor confidence. Half a percentage point is all that separates Panama from meeting the 4% fiscal target for this year. The government attributes part of the improvement to the consolidation plan and fiscal modernization. This limits new commitments in the last quarter and seeks to contain spending, although it could affect cash flow for suppliers and year-end economic activity. To achieve this goal, the government has implemented several measures, including a US$1.9 billion cut in June, mainly aimed at administrative and operational expenses. Despite mixed signals in the fiscal balance, Minister of Economy and Finance Felipe Chapman remains «supremely optimistic» and stated, «There is no doubt that it will be met, this year, next year, and the year after.»
