Panama : Staff Report for the 2003 Article IV Consultation

This 2003 Article IV Consultation for Panama reports that the medium-term outlook is sound, assuming continued pursuit of prudent fiscal policies and growth-enhancing structural reforms. Sustained compliance with the fiscal responsibility law will require structural reforms, including improvement of tax administration. Comprehensive reform of the pension system is needed to ensure its viability. The authorities are taking some administrative steps to reduce the deficit, but comprehensive reform will have to be done by the new government.