Phoenix 24
Market confidence is rising, but fiscal discipline remains the decisive test.
Panama City
Panama is attracting renewed attention from major international banks and investment firms as the government seeks to reinforce the country’s image as one of Latin America’s most resilient financial and logistics platforms. Economy and Finance Minister Felipe Chapman said investors increasingly describe Panama as one of the continent’s preferred markets, citing economic growth, fiscal adjustment and institutional continuity. The claim followed a series of high level meetings in New York with banks, asset managers and credit rating agencies.
The government delegation held more than 15 meetings with international financial institutions, including Citi, JPMorgan, Bank of America, Morgan Stanley and BBVA. Discussions also involved major investment firms and rating agencies evaluating Panama’s fiscal trajectory, debt management and economic outlook. According to Chapman, the level of interest reflected growing confidence that the country can combine expansion with greater control over public finances.
Recent economic data support part of that narrative. Panama’s economy grew 6.4 percent year over year in the second quarter of 2026, reinforcing expectations that activity could remain stronger than the regional average. The government has also emphasized stronger Panama Canal revenues, infrastructure investment and its strategic position between global trade routes as structural advantages capable of attracting long term capital.
Yet investor optimism coexists with significant fiscal constraints. Panama continues to carry historically high public debt, and international rating agencies remain cautious. S&P has maintained the country’s investment grade rating with a stable outlook, while Moody’s remains at the lowest investment grade level with a negative outlook. Fitch continues to rate Panama below investment grade. Those differences show that stronger growth has not eliminated concerns about debt sustainability and institutional reform.
Chapman himself has acknowledged that further measures will be required to strengthen Panama’s credit profile. The government’s challenge is therefore to convert stronger market sentiment into durable fiscal credibility rather than relying on short term enthusiasm. Reducing deficits, managing debt maturities and sustaining reforms will remain central to that process.
Panama’s current advantage lies in the convergence of geography, financial infrastructure, trade connectivity and improving economic performance. But international capital is rarely permanent in its preferences. The country’s ability to remain attractive will depend on whether positive momentum is translated into stronger institutions, predictable public finances and sustainable growth.
Behind every data point, the intention.