Panama slackens the reins on public spending

After several months of an economic slowdown in the once-booming economy off Panama, legislators have provided a $300 million injection of spending on public works.

The limit of the fiscal deficit has been raised from 1.5 to 2 percent of GDP. The Ministry of the Economy says that the new ceiling will boost projects that are already underway.

After next year, the new ceiling will be cropped from 2 to 1.75 percent for 2020 and 2021, before reaching 1.5 percent in 2022, by which time a new government will be in office.