Panama Growth Forecast Revised Down

• Fitch Solutions has revised its forecast for Panama’s real GDP growth to -13.2% and 7.9% y-o-y in 2020 and 2021, from -8.9% and 4.8% previously, as severe mobility restrictions caused the region’s deepest contraction in Q220.
• While the government has begun to phase out many public health restrictions, limited fiscal support suggests a sluggish recovery over the coming quarters.
• Over the medium-term, however, the agency maintains an upbeat growth forecast for Panama, as a robust private sector, supportive international trade trends, and major infrastructure investments will drive sustained growth.

(Source: Fitch Solutions)