Panamá closed the year much lower than expected. They anticipated a deficit of 4.4%, but the final result was significantly lower. Minister Felipe Chapman stated that the country not only met its promises but exceeded them. "We are regaining confidence," he affirmed, while explaining that this is already being felt in the lower country risk and the cost of debt. Thanks to increased oversight, technology, digitalization, and measures like the Fiscal Lottery, which encourages asking for receipts, revenues increased by 6.5%. More control, more money coming in, and less floating debt, especially for micro, small, and medium-sized enterprises that live day-to-day and generate the most employment. On the international stage, the government insists that Panamá is on the right track to exit discriminatory tax lists between the end of this year and the beginning of 2027. Chapman recalled that the country took a major step by leaving the list and becoming a cooperative partner after more than a decade of pressure. The minister ensured that the International Economic Forum for Latin America and the Caribbean 2026, held in Panamá, brought together over 10,000 participants, more than double that of Davos, according to the Ministry of Economy and Finance (MEF). For the government, this is another sign that Panamá is back on the map and this time, the numbers back up the discourse. Panamá is starting to breathe a little easier. The country's fiscal deficit dropped from 6.43% to 3.68%, a sharp, historic reduction achieved in just one year of tough adjustments, order in the house, and unpopular but necessary decisions. Minister of Economy and Finance, Felipe Chapman, broke down the precise data: in 2025, the deficit was reduced by over 2,069 million balboas, almost 40% less, something unseen before. The impact was so strong that neither the markets nor the rating agencies had it on their radar. The message: if the economy grows, employment arrives, and something is left in people's pockets. One of the data points that caused the most buzz was the savings from the reduction in the cost of debt. "As simple as that," according to the MEF. Panamá is on track to grow almost double the average for Latin America and to rank among the top 10 to 15 countries with the highest growth in the world. Central Government spending fell by almost 6%, without touching sensitive programs like electricity, gas, and social aid. Chapman insisted that they did not do what other countries have done: lay off people and provoke social crises. The focus, he says, was to bring order without hitting the weakest. On the revenue side, things also improved. "Many asked where the money was going to come from. It's not an optimistic tale, says Chapman, it's numbers that are already in motion. Here they are," he threw out, with a tone of response to the public. He also spoke of "scissors without massive layoffs." Less interest for the State, less pressure for the people. Almost 475 million balboas that, according to the minister, are enough to cover about 50% of the pensions subsidy from the Social Security (CSS).
