Panama: Country risk summary
TMCnet
TMC Launches New Sites ::  NGC  |  4GWE  |  Green Tech  |  Satellite  |  IT |  IVR |  ITEXPO SHOW NEWS  |  Healthcare  |  Cisco News  |  Skype News  |  Microsoft News  |  AVAYA News
  INDUSTRIES
  VERTICALS
  HORIZONTAL
  PUBLICATIONS
  FREE RESOURCES
  INTERNATIONAL
  EVENTS
  ABOUT TMC
  COMMUNITIES
Share
TMCnews
[September 25, 2007]

Panama: Country risk summary

(EIU Viewswire Via Thomson Dialog NewsEdge) COUNTRY VIEW

FROM THE ECONOMIST INTELLIGENCE UNIT

Panama: risk assessmentSovereign riskCurrency riskBanking sector riskPolitical riskEconomic structure riskSeptember 2007BBBBBBBBBBBBSovereign risk

Stable. The nominal public debt stock will continue to increase as the government borrows to finance investment spending. However, barring any unexpected external shocks affecting world trade growth, robust GDP growth in Panama will continue to see public debt ratios improve.



Currency risk

Stable. Dollarisation has underpinned price stability, but moderate fluctuations in the US dollars value against other major currencies has not affected Panamas competitiveness significantly, owing to the nature of its services-based economy.



Banking sector risk

Stable. Panamas fully integrated banking system is strongly capitalised and highly liquid. However, there is a risk of a rapid expansion in mortgage lending, leaving the sector exposed if the current construction boom proves overly speculative.

Political risk

Broad consensus among political parties on the importance of an economy open to trade and foreign investment minimises the risk of a deterioration in Panamas attractive operating environment for foreign companies.

Economic structure risk

A structurally large current-account deficit, reliance on Canal revenue and a heavy public debt burden will continue to weigh on economic structure risk.

The Country Risk Service (CRS) provides sovereign credit risk analysis for 120 developing and highly indebted countries. CRS is distinct from our Risk Briefing service, which analyses a broader spectrum of risks relating to the operating environment.

Copyright 2007 Economist Intelligence Unit

[ Back To TMCnet.com's Homepage ]


Discussions:
Be the first to post a comment on this page!
 
By  
TMCnet
TMCnet Videos
Featured White Papers
Top Stories
Related VoIP News

Today @ TMC
Upcoming Events
ITEXPO West 2009
September 1-3, 2009
Los Angeles Convention Center
Los Angeles, CA
4G Wireless Evolution Conference
Collocated with ITEXPO
September 1-3, 2009
Los Angeles Convention Center
Los Angeles, CA
Subscribe FREE to all of TMC's monthly magazines. Click here now.