Recovery of the investment level, the key challenge of the new government

New government will have the key challenge of investment grade recovery of the national debt by the risk assessment agency Fitch Ratings, which has just lowered this rating from BBB- to BB+, warned this Sunday the Chamber of Commerce, Industry and Agriculture of Panama.

Adolfo Fábrega, president of CCIAP, reminds that investment grade is a measure assigned by credit rating agencies that shows the country’s financial strength and ability to meet its financial obligations.

This classification is essential for accessing financing under favorable conditions and maintaining investor confidence. All this affects the price of money, which in turn affects the price of goods that people need to live.

The manager points out that in recent years, The management of state finances affected the country’s credit rating and reputation as a safe investment destination. Factors such as the continued increase in public debt, the perception of corruption and the lack of progress in transparency and the rule of law have contributed to the erosion of investor confidence.

“Efforts to achieve investment grade have been enormous, so there is no time to waste in starting the works, as this is necessary to stimulate economic growth and lay the foundations for long-term sustainable growth. The new Government must respond decisively to these challenges and adopt bold measures to restore confidence of investors, both local and international,” said Fábrega.

In this sense, he adds that the new authorities will have to implement the Fiscal Consolidation Plan, which ensures macroeconomic stability and restores fiscal stability. This will help reassure the market and demonstrate the country’s ability to manage its finances responsibly.

In Fábrega’s opinion, it will be essential to strengthen institutions, including those with oversight obligations, and improve transparency in public administration to fight corruption and guarantee accountability. This will send a positive signal to investors about the country’s commitment to transparent practices.

It is also stated that the priority will be the development of a strategy for attracting foreign direct investment in key sectors of the economy, such as logistics, infrastructure, renewable energy sources, tourism, and technology and information. This will not only stimulate economic growth, but also create new jobs and knowledge.

“The urgency of starting the works i regaining market confidence cannot be underestimated. “The new authorities must act decisively and decisively to implement the necessary reforms and lay the foundations for a prosperous and sustainable future,” he added.

For Fábrega, the coming months will be critical in this regard and will require a firm commitment from all political and social forces to work together in search of solutions.

“Panama has enormous potential and, with the right political will, can regain its position as a regional leader in attracting investment and economic growth for Panamanians,” he said.