Economy of Panama
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Overview
Because of its key geographic location, Panama's economy is service-based, heavily weighted toward banking, commerce, and tourism. The hand-over of the canal and military installations by the US has given rise to new construction projects.
Panama's economy is based primarily on a well-developed services sector that accounts for nearly 80% of GDP. Services include the Panama Canal, banking, the Colon Free Zone, insurance, container ports, and flagship registry, medical and health, and other business.
GDP growth for 2000 was about 2.3% compared to 3.0% in 1999. Though Panama has the highest GDP per capita in Central America, about 40% of its population lives in poverty. The unemployment rate surpassed 14% in 2002.
Statistics
GDP: purchasing power parity - $18.78 billion (2003 est.)
GDP - real growth rate: 4.1% (2003 est.)
GDP - per capita: purchasing power parity - $6,300 (2003 est.)
GDP - composition by sector:
agriculture:
8.3%
industry:
14.7%
services:
77.1% (2003 est.)
Household income or consumption by percentage share:
lowest 10%:
0.5%
highest 10%:
42.5% (1991)
Investment (gross fixed): 24.8% of GDP (2003)
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: 48.5 (1997)
Inflation rate (consumer prices):
1.4% (2003 est.)
Labor force:
1.19 million
note: shortage of skilled labor, but an oversupply of unskilled labor (2003 est.)
Labor force - by occupation: agriculture 20.8%, industry 18%, services 61.2% (1995 est.)
Unemployment rate: 13.8% (2003 est.)
Budget:
revenues:
$2.995 billion
expenditures:
$3.421 billion, including capital expenditures of $471 million (2003 est.)
Agriculture - products: bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp
Industries: construction, petroleum refining, brewing, cement and other construction materials, sugar milling
Industrial production growth rate: 7% (2003 est.)
Electricity - production: 4.039 TWh (2001)
Electricity - production by source:
fossil fuel:
25.56%
hydro:
73.78%
nuclear:
0%
other:
0.66% (1998)
Electricity - consumption: 3.681 TWh (2001)
Electricity - exports: 0.118 TWh (2001)
Electricity - imports: 0.043 TWh (2001)
Oil - production: 0 barrel/d (2001 est.)
Oil - consumption: 52,000 barrel/day (8,300 m³/d) 2001 est.
Oil - exports: NA (2001)
Oil - imports: NA (2001)
Current account balance: $-408 million (2003)
Exports: $5.237 billion f.o.b. (2003 est.)
Exports - commodities: bananas, shrimp, sugar, coffee, clothing (1999)
Exports - partners: United States 13.9%, Nigeria 9.8%, Germany 8.1%, South Korea 7.8%, Peru 5.1%, Costa Rica 4.9%, Belgium 4.8%, Japan 4.5% (2003)
Imports: $6.622 billion f.o.b. (2003 est.)
Imports - commodities: capital goods, crude oil, foodstuffs, consumer goods, chemicals (1999)
Imports - partners: Japan 33.2%, US 11.4%, China 9.1%, South Korea 7.7%, Singapore 7.1% (2003)
Reserves of foreign exchange & gold: $1.011 billion (2003)
Debt - external: $8.834 billion (2003 est.)
Economic aid - recipient: $197.1 million (1995)
Currency: balboa (PAB); US dollar (USD)
Exchange rates: balboas per US dollar - 1 (2003), 1 (2002), 1 (2001), 1 (2000), 1 (1999) (fixed rate)
Fiscal year: calendar year