Panama Economy Profile 2009

Economy - overview

Panama's dollarized economy rests primarily on a well-developed services sector that accounts for 80% of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. Economic growth will be bolstered by the Panama Canal expansion project that began in 2007 and is scheduled to be completed by 2014 at a cost of $5.3 billion - about 25% of current GDP. The expansion project will more than double the Canal's capacity, enabling it to accommodate ships that are now too large to transverse the transoceanic crossway, and should help to reduce the high unemployment rate. Strong economic performance has reduced the national poverty level to 29% in 2008; however, Panama has the second most unequal income distribution in Latin America. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. 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)

$38.83 billion (2008 est.)
$35.56 billion (2007 est.)
$31.89 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$23.09 billion (2008 est.)

GDP - real growth rate

9.2% (2008 est.)
11.5% (2007 est.)
8.5% (2006 est.)

GDP - per capita (PPP)

$11,700 (2008 est.)
$10,900 (2007 est.)
$9,900 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 6.4%
industry: 17.2%
services: 76.4% (2008 est.)

Population below poverty line

28.6% (2006 est.)

Labor force

1.392 million
note: shortage of skilled labor, but an oversupply of unskilled labor (2008 est.)

Labor force - by occupation

agriculture: 15%
industry: 18%
services: 67% (2006)

Unemployment rate

5.6% (2008 est.)
6.4% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 0.8%
highest 10%: 41.4% (2006)

Distribution of family income - Gini index

56.1 (2003)
48.5 (1997)

Investment (gross fixed)

25.7% of GDP (2008 est.)

Budget

revenues: $6.02 billion
expenditures: $5.923 billion (2008 est.)

Public debt

45.3% of GDP (2008 est.)
69.2% of GDP (2004 est.)

Inflation rate (consumer prices)

8.8% (2008 est.)
4.2% (2007 est.)

Commercial bank prime lending rate

NA% (31 December 2008)
8.25% (31 December 2007)

Stock of money

$NA (31 December 2008)
$3.054 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$14.26 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$17.4 billion (31 December 2007)

Industries

construction, brewing, cement and other construction materials, sugar milling

Industrial production growth rate

14.2% (2008 est.)

Electricity - production

5.805 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 37%
hydro: 61.3%
nuclear: 0%
other: 1.7% (2001)

Electricity - consumption

4.768 billion kWh (2006 est.)

Electricity - exports

124.9 million kWh (2007 est.)

Electricity - imports

8.74 million kWh (2007 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

92,790 bbl/day (2006 est.)

Oil - imports

88,790 bbl/day (2005)

Oil - exports

4,447 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$2.792 billion (2008 est.)
-$1.422 billion (2007 est.)

Agriculture - products

bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp

Exports

$10.29 billion (2008 est.)
$9.338 billion (2007 est.)
note: includes the Colon Free Zone

Exports - commodities

bananas, shrimp, sugar, coffee, clothing

Exports - partners

US 17.2%, Germany 14.6%, Italy 9%, Greece 6.1%, Netherlands 4.8%, Denmark 4.2%, Spain 4.2% (2008)

Imports

$15 billion (2008 est.)
$12.52 billion (2007 est.)
note: includes the Colon Free Zone

Imports - commodities

capital goods, foodstuffs, consumer goods, chemicals

Imports - partners

Japan 29.5%, Singapore 17.6%, China 15.4%, US 13.2%, France 4.5% (2008)

Reserves of foreign exchange and gold

$2.443 billion (31 December 2008 est.)
$1.935 billion (31 December 2007 est.)

Debt - external

$10.89 billion (31 December 2008 est.)
$10.45 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$6.568 billion (31 December 2008)
$6.219 billion (31 December 2007)
$5.716 billion (31 December 2006)

Economic aid - recipient

$19.54 million (2005)

Currency (code)

PAB; USD

Currency (code)

balboa (PAB); US dollar (USD)

Exchange rates

balboas (PAB) per US dollar - 1 (2008 est.), 1 (2007), 1 (2006), 1 (2005), 1 (2004)
note: the US dollar is the legal currency

Fiscal year

calendar year