A comfortable parliamentary majority, firm poll ratings for the president, Martin Torrijos, and a strongly performing economy will continue to favour the government of the Partido Revolucionario Democratico (PRD) in the run-up to the legislative and presidential elections in May 2009, giving the PRD a strong chance of being elected to a second term. The fiscal adjustment introduced by the government will contribute to the substantial improvements in fiscal stability. Rising private investment, construction and Canal-related activities will make an increasingly important contribution to growth in 2008-09.