Why did Panama lose its investment grade? This is the question that many are asking after this information has been released.
For him the presidential candidate of the Alliance to Save Panama, José Raúl Mulinothe country got into this situation because the last two governments have dedicated themselves to “destroying instead of continuing what we built with (Ricardo) Martinelli.”
Mulino, standard bearer Goal Realization (RM) and alliancehe recalled that during the government of Ricardo Martinelli, Panama achieved investment grade for the first time in its history.
“The economy grew like never before, there were many jobs and ‘chen chen'”described a candidate who was part of Martinelli’s government team.
Now it prevails restore investment grade, Mulino thoughtas well as to reactivate the economy and create jobs, “s buco chen chen pa’ ti”, he expressed.
Another member of Martinelli’s government who reacted to this news was former Minister of Economy, Frank De Limawho classified it as a “severe blow to the country”.
“I would expect the rating agencies to favor the new government correct the course of public financesDe Lima thought.
The Fitch Ratings downgradethus the country loses its investment rating reflects fiscal and management challenges exacerbated by events surrounding the closure of the copper mine.
The report of the rating agency adds that large fiscal deficits and poor income they fueled some of the biggest increases in public debt/GDP and peer-to-peer interest/income since 2019, before the pandemic.
“This limited the space for countercyclical policies that were already more limited in the context of dollarization and represents greater vulnerability in light of the sovereign’s strong dependence on external markets for financing“, says the report.
The public debt in the current government has grown to unprecedented levels, which is not in line with the public spending policy that He does not behave with the rigor that is required.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
