Moody’s, the world known rating agency, confirmed Panama’s rating at Baa2 with “Stable” forecast. The economy of Panama is mostly based on services and does not depend on raw materials. Besides the agency emphasizes good fiscal environment and medium term debts (2015-2017), plus the commitment of the administration to implement Social Responsibility and Tax Laws.
“Panama is a service-based economy, unlike its majority of regional peers. The country is mostly resistant to market volatility”, announces Moody’s.
Moody’s stressed that economic performance of the country has been driven by investment in infrastructure, which amounted to 47% of GDP in 2014, driven mostly by large projects like the Expansion of Panama Canal, the construction of 1st metro line in Panama City and the new terminal in Tocumen International Airport.
“Investment in public sector has led to the positive investment inflow in private sector and the capital formation”, added Moody’s analysts.
The rating agency expects that the mentioned infrastructure projects along with major economic activity in tourism, mining and other sectors will add 6.5% to the economy between 2015-2017 annually.
