Capital Expenditures To Underpin Panama's Modest Deficits

• Fitch Solutions expect Panama's fiscal deficit will narrow modestly in 2019 and 2020, with revenues supported by strong economic growth and receipts from the expanded Panama Canal. 
• An ambitious public infrastructure agenda will drive capital expenditures and likely keep the budget in deficit over the coming years. 
• A change to the fiscal responsibility law will modestly relax the government’s fiscal targets, although we expect debt as a percentage of GDP to remain contained in the coming years. 

(Source: Fitch)