Dealing with economic challenges at Panama's electoral crossroads in 2024
With the approach of 2024, in which an electoral contest will be the protagonist, Panama finds itself at an economic crossroads with significant challenges that could shape its financial and labor outlook. Recent actions, such as the court ruling against a mining contract, could lead the country to an inevitable drop in investment grade, loss of confidence in attracting new foreign investments and an increase in unemployment.
These challenges add to the current crisis that the Central American nation faces in its public finances, marked by a growing fiscal deficit and increased debt that increasingly compromises available resources.
The closure of the Cobre Panamá project, carried out by Minera Panamá, a subsidiary of the Canadian First Quantum Minerals, adds an additional layer of complexity, since an urgent approach to the management of natural resources in a sustainable manner must now be taken. before the clamor of society.
In the midst of these circumstances, the country will have to work more quickly on its economic resilience to maintain its global position, according to several experts who participated in the 2024 Economic Perspectives Forum, organized by Capital Financiero, together with the sponsorship of the Embassy of the People's Republic of China in Panama and AV Securities.
Amid these concerns, Dulcidio De La Guardia, Partner and CFO of Morgan & Morgan referred to the fiscal projections for 2024 and their possible impact on Panama's risk rating, in addition to the scenarios that are about to happen given the proximity of the electoral period.
The current economic situation in Panama demands immediate and strategic attention from the authorities, as well as close collaboration between the public and private sectors to face these challenges effectively. Making informed decisions and implementing policies that foster economic stability and attract investment will be crucial for the country's future.
As we approach 2024, it is imperative that concrete and sustainable plans are established to address the financial and labor issues facing Panama. Only through a comprehensive and collaborative approach will we be able to overcome this crossroads and lay the foundations for sustainable economic development in the future.
The electoral contest in 2024 not only represents a political challenge, but also an opportunity for Panama to demonstrate its capacity for adaptation and resilience in times of economic uncertainty. With committed leadership and a long-term vision, the country will be able to overcome current obstacles and lay the foundation for a prosperous and equitable future for all its citizens.
In conclusion, the economic crossroads that Panama faces as 2024 approaches requires decisive and coordinated action by all actors involved. With a proactive and strategic approach, it is possible to overcome current challenges and lay the foundation for a strong and sustainable economic future.
Carrying out an exhaustive analysis of the tax reforms that could be addressed in Panama in 2024, the intervention of José Galindez, partner of Galindez, Medrano & Associates, in a highly relevant forum. During this event, Galindez addressed several crucial aspects that the next government must consider in relation to the CSS deficit, the execution of the 2024 Budget and the ruling of the Panamanian Supreme Court that declared Law 406 unconstitutional, which rethinks the economic issue of Panama. .
Among the tax reform proposals for the year 2024 presented by Galindez, the evaluation of tax expenditure is included, the implementation of a tax on digital services, the application of the Global Minimum Tax of 15% for multinational groups with a high monetary potential, the promotion of a value added tax (Social VAT) and a reorganization of the Income Tax. These proposals seek to address the current challenges that the Central American nation faces in its public finances, marked by a growing fiscal deficit and an increase in debt that compromises available resources.
In addition, the closure of the Cobre Panamá project, run by Minera Panamá, a subsidiary of the Canadian First Quantum Minerals, must be taken into account, which adds an additional layer of complexity to the situation. The sustainable management of natural resources becomes urgent in the face of society's clamor, and it is crucial to address this issue promptly.
In this context, it is evident that the country will have to work quickly to strengthen its economic resilience to maintain its global position. Various experts who participated in the 2024 Economic Perspectives Forum, organized by Capital Financiero, together with the sponsorship of the Embassy of the People's Republic of China in Panama and AV Securities, agree on the importance of addressing these issues effectively.
In summary, the tax reform proposals presented by José Galindez offer a starting point to address the financial challenges that Panama faces in the year 2024. It is crucial that the country acts with determination and effectiveness to guarantee its economic stability and its position in the global scope.
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