An Overview of the Economy
Panama is politically stable with a government dedicated to
improving the welfare of its population through investment and
economic growth. The country currently has the most stable economy
in Latin America and growth has outperformed expectations in
recent years averaging at 7.3%. Medical facilities are first
class and education is improving, though an estimated 40% of the
population still live in poverty, and unemployment, though falling,
currently stands at 8.6%. Although it is still classed as an
undeveloped country, Panama is showing steady economic growth with
a growing tourist industry and government plans which will develop
the country. The construction industry is the backbone of the
country, and among Latin America, Panama is expected to show the
highest GDP growth in 2008, of between 7.5% and 9%.
| statistics |
|
| GDP (PPP) (IMF) (US$Billions) |
34.5 |
| GDP (PPP) (CIA) (US$Billions) |
34.5 |
| GDP Growth (IMF) (%) |
11.2% |
| GDP Growth (CIA) (%) |
11.2% |
| GDP Per Capita (PPP) (IMF) (US$) |
10,322 |
| GDP Per Capita (PPP) (CIA) (US$) |
10,300 |
| GDP by Sector |
Agriculture: 6.6%
Services: 77%
Industry: 16.4% |
| Inflation (%) |
4.2% |
| Population Below the poverty Line (%) |
37% |
| Labour Force (Millions) |
1.36 |
| Labour Force by Occupation (%) |
Agriculture: 15%
Services: 67%
Industry: 18% |
| Unemployment (%) |
6.4% |
| Main Industries |
Construction, brewing, cement and other
construction materials, sugar milling. |
Source: CIA World Factbook
GDP
| economic indicators |
2003 |
2004 |
2005 |
2006 |
2007 |
| GDP (US$Billions) |
12.93 |
14.18 |
15.47 |
17.13 |
19.74 |
| GDP Annual Growth (%) |
4.2% |
7.6% |
7.2% |
8.7% |
11.2% |
| GDP Per Capita (US$) |
4,155 |
4,474 |
4,793 |
5,217 |
5,904 |
| GDP Per Capita (PPP) (US$) |
7,136 |
7,735 |
8,359 |
9,203 |
10,322 |
| Inflation (%) |
0.6% |
0.5% |
2.9% |
2.5% |
4.2% |
| Unemployment (%) |
16.0% |
13.8% |
12.6% |
9.8% |
6.4% |
| Mobile Phone Users |
17,000 |
834,000 |
834,000 |
1,352,000 |
1,694,000 |
| Internet Users |
45,000 |
120,000 |
120,000 |
120,000 |
220,000 |
Source: IMF, CIA World Factbook
Major Exports & Imports
Panama has the second largest trade free zone in the world.
Services are currently the country's biggest import and export
sector. Panama exports more goods to Spain than any other country;
the exports include manufactured goods, bananas and shrimp. Japan
is one of the country's main importing partners of food, capital
goods and fuel. As a developing country, the number of imports into
the country is growing faster than the number of exported
goods, although exports are expected to rise with the growing
economy.
Major Exports 2007
Agriculture (81.1%), manufactures (8%), fuels and mining
products (4.4%), bananas, shrimp, coffee, sugar, clothing.
Major Imports 2007
Manufactures (67.3%), fuels and mining products (18.8),
agriculture (12.8%), capital goods, foodstuffs, consumer goods,
chemicals.
| export partners 2007 |
% of total |
| US |
39.1% |
| Spain |
8.1% |
| Netherlands |
6.7% |
| Sweden |
5.6% |
| Costa Rica |
4.5% |
| import partners 2007 |
% of total |
| US |
27% |
| Netherland Antilles |
10.1% |
| Costa Rica |
5.1% |
| Japan |
4.7% |
Source: CIA World Factbook
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