Panama - Total natural resources rents (% of GDP)

Total natural resources rents (% of GDP) in Panama was 0.079 as of 2019. Its highest value over the past 49 years was 0.651 in 1982, while its lowest value was 0.079 in 2019.

Definition: Total natural resources rents are the sum of oil rents, natural gas rents, coal rents (hard and soft), mineral rents, and forest rents.

Source: Estimates based on sources and methods described in "The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium" (World Bank, 2011).

See also:

Year Value
1970 0.296
1971 0.238
1972 0.259
1973 0.378
1974 0.353
1975 0.446
1976 0.420
1977 0.512
1978 0.409
1979 0.411
1980 0.509
1981 0.409
1982 0.651
1983 0.295
1984 0.167
1985 0.123
1986 0.120
1987 0.125
1988 0.130
1989 0.141
1990 0.270
1991 0.271
1992 0.241
1993 0.187
1994 0.191
1995 0.244
1996 0.175
1997 0.200
1998 0.151
1999 0.138
2000 0.137
2001 0.124
2002 0.123
2003 0.144
2004 0.160
2005 0.097
2006 0.127
2007 0.118
2008 0.110
2009 0.145
2010 0.235
2011 0.268
2012 0.260
2013 0.194
2014 0.204
2015 0.135
2016 0.126
2017 0.125
2018 0.105
2019 0.079

Development Relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future.

Limitations and Exceptions: This definition of economic rent differs from that used in the System of National Accounts, where rents are a form of property income, consisting of payments to landowners by a tenant for the use of the land or payments to the owners of subsoil assets by institutional units permitting them to extract subsoil deposits.

Statistical Concept and Methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the world price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs (including a normal return on capital). These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Environment Indicators

Sub-Topic: Natural resources contribution to GDP