The Minister of Economy and Finance of Panama, Felipe Chapman, emphasized during his participation in the II Economic Forum organized by the National Council of Private Enterprise (CONEP) that the country is not facing an economic or fiscal crisis. Chapman highlighted that, despite the challenges facing public finances, the problems have been identified and action plans are in place to address them.
Among the issues addressed, Chapman explained that Panama has one of the lowest tax collection rates compared to the size of its economy. Although financing with a rate of 5.94% was recently accepted, the minister emphasized the importance of a recently approved bill that introduces modifications to the Law of Fiscal Social Responsibility.
The budget of Panama, amounting to B/.30,111 million, remains one of the lowest in the last twenty-five years, despite the adjustments made. Chapman stated that fiscal measures are being taken and confidence has been generated among bondholders, exceeding the Ministry's expectations and allowing for a reduction in the country risk premium.
Chapman expressed optimism regarding the growth prospects of the Gross Domestic Product (GDP), highlighting that it is essential to strengthen tax collection to increase state revenues. He emphasized the importance of a responsible budget that reflects a clear understanding of the current situation, avoiding drastic changes.
The minister also highlighted the relevance of a project aimed at curbing the growth of debt, organizing public finances, and maintaining debt at manageable levels over time. Chapman emphasized that measures are being taken to improve the efficiency of tax collection and to ensure a balance between operating expenses and investment, with the goal of guaranteeing economic stability and prosperity for all Panamanians.
