*Panama’s national assembly has approved a reform to the country’s fiscal responsibility law to allow a higher non-financial public sector deficit. The reform, approved with 47 votes in favour in the 71-seat national assembly, will allow a deficit of 4.0% of GDP in 2025, up from the maximum 2.0% that was permitted under the original fiscal responsibility law that was introduced in 2008. The maximum permitted deficit will then be lowered to 3.5% in 2026, 3.0% in 2027, 2.5% in 2028, 2.0% in 2029, and 1.5% in 2030 and subsequent years. President José Raúl Mulino’s government has argued that the reform is necessary as the previous fiscal rule restricting the deficit to 2.0% of GDP was not being adhered to, with the deficit standing at 4% of GDP in 2024.