Economy of Panama
| Economy - overview: | Panama's dollarized economy rests primarily on a well-developed services sector that accounts for three-fourths of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump in the Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth in 2000-03; growth picked up in 2004-06 led by export-oriented services and a construction boom stimulated by tax incentives. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. Unemployment remains high. In October 2006, voters passed a referendum to expand the Panama Canal to accommodate ships that are now too large to transverse the transoceanic crossway. Not a CAFTA signatory, Panama in December 2006 independently negotiated a free trade agreement with the US, which, when implemented, will help promote the country's economic growth. |
| GDP (purchasing power parity): | $26.04 billion (2006 est.) |
| GDP (official exchange rate): | $16.47 billion (2006 est.) |
| GDP - real growth rate: | 8.1% (2006 est.) |
| GDP - per capita (PPP): | $8,200 (2006 est.) |
| GDP - composition by sector: | agriculture: 7.2% industry: 16.4% services: 76.4% (2006 est.) |
| Labor force: | 1.441 million note: shortage of skilled labor, but an oversupply of unskilled labor (2006 est.) |
| Labor force - by occupation: | agriculture: 20.8% industry: 18% services: 61.2% (1995 est.) |
| Unemployment rate: | 8.8% (2006 est.) |
| Population below poverty line: | 37% (1999 est.) |
| Household income or consumption by percentage share: | lowest 10%: 1.2% highest 10%: 35.7% (1997) |
| Distribution of family income - Gini index: | 56.4 (2000) |
| Inflation rate (consumer prices): | 2.6% (2006 est.) |
| Investment (gross fixed): | 17.5% of GDP (2006 est.) |
| Budget: | revenues: $4.157 billion expenditures: $4.489 billion; including capital expenditures of $471 million (2006 est.) |
| Public debt: | 61.3% of GDP (2006 est.) |
| Agriculture - products: | bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp |
| Industries: | construction, brewing, cement and other construction materials, sugar milling |
| Industrial production growth rate: | 3% (2006 est.) |
| Electricity - production: | 7.545 billion kWh (2004) |
| Electricity - production by source: | fossil fuel: 37% hydro: 61.3% nuclear: 0% other: 1.7% (2001) |
| Electricity - consumption: | 6.888 billion kWh (2004) |
| Electricity - exports: | 207 million kWh (2004) |
| Electricity - imports: | 78 million kWh (2004) |
| Oil - production: | 0 bbl/day (2004 est.) |
| Oil - consumption: | 79,000 bbl/day (2004 est.) |
| Oil - exports: | NA bbl/day |
| Oil - imports: | NA bbl/day |
| Oil - proved reserves: | 0 bbl |
| Natural gas - production: | 0 cu m (2004 est.) |
| Natural gas - consumption: | 0 cu m (2004 est.) |
| Current account balance: | -$467 million (2006 est.) |
| Exports: | $8.087 billion f.o.b.; note - includes the Colon Free Zone (2006 est.) |
| Exports - commodities: | bananas, shrimp, sugar, coffee, clothing |
| Exports - partners: | Spain 26.8%, US 18.9%, Italy 5.7%, Germany 5.4% (2006) |
| Imports: | $9.365 billion f.o.b. (includes the Colon Free Zone) (2006 est.) |
| Imports - commodities: | capital goods, foodstuffs, consumer goods, chemicals |
| Imports - partners: | Japan 33.2%, China 16%, US 11.2%, Singapore 11.2% (2006) |
| Reserves of foreign exchange and gold: | $1.236 billion (2006 est.) |
| Debt - external: | $9.993 billion (2006 est.) |
| Economic aid - recipient: | $197.1 million (1995) |
| Currency (code): | balboa (PAB); US dollar (USD) |
| Currency code: | PAB; USD |
| Exchange rates: | balboas per US dollar - 1 (2006), 1 (2005), 1 (2004), 1 (2003), 1 (2002) |
| Fiscal year: | calendar year |