The Panamanian Association of Business Executives (APEDE) warned that Panama is facing a decisive moment for its economic credibility after Moody's and S&P affirmed the investment grade with a negative outlook, following a prior downgrade by Fitch.
In the guild president's weekly column, Giulia De Sanctis stated that these moves should motivate concrete actions to strengthen the country's institutions, fiscal discipline, and governance.
APEDE emphasized that maintaining the investment grade has direct effects on daily life, as it impacts interest rates, the cost of state financing, foreign investment inflows, and the stability of the financial system. The association argues that if Panama were to lose this category, it would affect employment, growth, competitiveness, and the state's ability to finance public services.
The association noted that the credit rating agencies agree on five central points: reducing the deficit; correcting spending rigidities; increasing revenue; enhancing fiscal transparency; and guaranteeing legal security and fighting corruption.
For APEDE, these aspects are essential to protect the most vulnerable sectors and ensure sustainable investments in areas such as education, health, infrastructure, and long-term pensions.
The business group also highlighted the importance of the government's announcement regarding the start of the accession process to the Organisation for Economic Co-operation and Development (OECD), noting that this body promotes better practices in public spending, regulation, transparency, and policy evaluation.
APEDE believes that if Panama approaches this process with technical rigor and political will, it can become a means to strengthen the country's fiscal and institutional credibility.
The association stressed that the international context demands competitiveness and stability to attract investment and talent, and therefore called for prioritizing political, social, and economic agreements.
For APEDE, stability is not achieved with declarations, but with sustained decisions based on evidence and responsibility.
Finally, De Sanctis reiterated that fiscal policy must become a state policy and that reforms should not be postponed. She affirmed that Panama has the capacity to regain its regional economic leadership and that the private sector is willing to actively participate in building solutions.
