Panama makes the grade
Moody's rating agency this week awarded Panama investment grade for its sovereign borrowing. Standard & Poors did likewise on May 25, following the first such move, by Fitch Inc. last February.
Centralamercialink agrees that Panama is moving impressively to increase competitiveness, balancing infrastructure development with tax increases, aimed at improving the quality of public services, especially education and health, as well as maintaining healthy public finances.
The country still has a way to go, in terms of improving workforce skills, and of reducing a wide gap between rich and poor. In addition, there may be an excess supply of residential and commercial real estate, following a construction boom in the period 2004-2009. On the other hand, the administration of Ricardo Martinelli is making sound progress since taking office last July.
Investment grade lets countries borrow at low rates, by assuring lenders that their credit is good.
- Investors in:
- Back-office services
- Engineering consulting