UPCG assures that Panama is on the path of fiscal consolidation

He Minister of Economy and Finance, Héctor Alexander He stated that the country has embarked on the path of fiscal consolidation, its economy has recovered strongly, so the economic prospects are favorable.

He raised yes Government Since 2019, it has had to deal with crisis after crisis, amid an economic slowdown, starting with late payments to suppliers and then the global covid-19 pandemic, but there is a strong economic recovery.

He emphasized the following: “My strategy has to do with capacity Government generate more savings, because it enables us to play a much more important social role”.

He explained that “in 2020, for every 100 balbos that entered from non-tax and state tax revenueswhich do not imply debt, you had to borrow 20 balbos to pay for the operations.

However, “in 2023, for every 100 balbos we receive, we spend almost 86 on operations and we still have 14 left to invest, he explained.

Owner MEF shared statistical data on the subject, in which it was proven that the percentage relationship current savings/current income in 2020 it was negative at 20.7, and in 2021 at 14.2%, while in 2022 it was positive at 6.7%, and this year in 2023 it increased to +14.3%.

He added yes Panama it records deficits similar to those in advanced economies. The deficit in the country amounted to 10.2% in 2020, 6.5% in 2021 and 3.9% in 2022, while in developed economies it was 10.2%, 7.5% and 4.3% in the same year.

“In 2023, 14.3% of savings will finance approximately 43% of investments Central governmentwhich shows that we’re going from a point where we took on debt to pay for the business and for 100% of the investment to another situation where we’re saving,” said Alexander.

“The perspectives of panama are favorable, we will continue to be one of the countries with the highest growth in the region and the world, inflation will continue to be one of the lowest in the world, we will maintain the level of investment we have had since 2010 and this year we will have full compliance with the 15 actions of the FATF Action Plan “, concluded the minister.

The statements were made during the presentation of a report on the current state of the country’s economy to the members Council of the National Conference on Development.