Panama adjusts fiscal deficit law to accommodate coronavirus upheaval

PANAMA CITY, Oct 28 (Reuters) - Panama's National Assembly on Wednesday modified the law that limits the fiscal deficit in order to adjust for the effects of the coronavirus pandemic and its impact on the economy, the Latin American nation's finance ministry said.

Finance minister Hector Alexander said the crisis, which led to lower taxes and higher spending, means it was necessary to modify the fiscal spending limits.

The ministry envisages the deficit to be between 9%-10.5% this year, and between 7%-7.5% in 2021. The deficit is forecast to fall to 1.5% by 2025. (Reporting by Eli Moreno Writing by Drazen Jorgic Editing by Shri Navaratnam)