Extended Lockdown Measures Will Drive Deeper Recession In Panama

• Fitch Solutions has revised its 2020 real GDP growth forecast for Panama to -6.4% y-o-y, from -2.9% previously, to reflect the impact of Panama’s extended lockdown measures on economic activity.
• Extended shutdowns of major sectors of the Panamanian economy will contribute to a significant decline in private consumption over the coming months. Furthermore, fiscal stimulus measures will be insufficient to offset the COVID-19-induced fall in demand over the short term.
• The risks to Panama’s economic outlook are skewed heavily to the downside, as sustained Covid-19 lockdowns into Q4 2020 could delay a recovery in key sectors of the economy.

(Source: Fitch Solutions)