LatinNews Daily - 06 February 2026

*Panama’s President José Raúl Mulino has said that since taking office in July 2024, his government has reduced the country’s fiscal deficit from 6.43% of GDP to 3.68%. Speaking at the same press conference yesterday, Panama’s economy and finance minister, Felipe Chapman, said that the figure is not only lower than the target established in the state budget but also exceeds the requirements of the fiscal social responsibility law of 4.0%. Underlining that the figure is significantly lower than the 4.4% deficit anticipated by international markets and rating agencies, Chapman said that the reduction in fiscal deficit has already been reflected in a fall in interest rates, and a reduction in the country risk premium by more than 54%, despite a volatile global environment. He added that the government has saved nearly US$475m through reducing the cost of debt which he said covers almost 50% of pension subsidies for the social security fund (CSS). Chapman also said that the Mulino government had reduced government spending by 6% through a “progressive policy” which aimed to balance public finances and halt the growth of debt without affecting people’s quality of life, maintaining assistance programmes and fundamental subsidies for electricity and gas. He announced a 6.5% rise in revenue through fiscal discipline as well as the application of technology and digitalisation to boost tax collection, while also noting that state debt was reduced by over US$900m in a year, which Chapman said was a reduction of nearly 46%.

End of preview - This article contains approximately 252 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial