Panama Economy 2008

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. Economic growth will be bolstered by the Panama Canal expansion project that began in 2007 and should be completed by 2014 at a cost of $5.3 billion (about 30% 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. 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):
$29.14 billion (2007 est.)

GDP (official exchange rate):
$18.17 billion (2007 est.)

GDP - real growth rate:
7.8% (2007 est.)

GDP - per capita (PPP):
$9,000 (2007 est.)

GDP - composition by sector:
agriculture: 6.8%
industry: 16.2%
services: 77% (2007 est.)

Labor force:
1.471 million
note: shortage of skilled labor, but an oversupply of unskilled labor (2007 est.)

Labor force - by occupation:
agriculture: 15%
industry: 18%
services: 67% (2006 est.)

Unemployment rate:
7.2% (2007 est.)

Population below poverty line:
37% (1999 est.)

Household income or consumption by percentage share:
lowest 10%: 0.7%
highest 10%: 43% (2003)

Distribution of family income - Gini index:
56.1 (2003)

Inflation rate (consumer prices):
5.1% (2007 est.)

Investment (gross fixed):
20.5% of GDP (2007 est.)

Budget:
revenues: $5.206 billion
expenditures: $5.089 billion (2007 est.)

Public debt:
53.6% of GDP (2007 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:
7.8% (2007 est.)

Electricity - production:
5.661 billion kWh (2005)

Electricity - consumption:
4.735 billion kWh (2005)

Electricity - exports:
51 million kWh (2005)

Electricity - imports:
55 million kWh (2005)

Oil - production:
0 bbl/day (2005 est.)

Oil - consumption:
93,000 bbl/day (2006 est.)

Oil - exports:
4,140 bbl/day (2004)

Oil - imports:
92,170 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
0 cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
0 cu m (1 January 2006 est.)

Current account balance:
-$861 million (2007 est.)

Exports:
$9.662 billion f.o.b.; note - includes the Colon Free Zone (2007 est.)

Exports - commodities:
bananas, shrimp, sugar, coffee, clothing

Exports - partners:
US 39.8%, Spain 8.1%, Netherlands 6.7%, Sweden 5.6%, Costa Rica 4.5% (2006)

Imports:
$12.1 billion f.o.b. (includes the Colon Free Zone) (2007 est.)

Imports - partners:
US 27%, Netherlands Antilles 10.1%, Costa Rica 5.1%, Japan 4.7% (2006)

Economic aid - recipient:
$19.54 million (2005)

Reserves of foreign exchange and gold:
$1.26 billion (31 December 2007 est.)

Debt - external:
$10.56 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:
$5.074 billion (2005)

Currency (code):
balboa (PAB); US dollar (USD)

Exchange rates:
balboas per US dollar - 1 (2007), 1 (2006), 1 (2005), 1 (2004), 1 (2003)