Overview: The GDP contracted an estimated 7.5% in 1989, following a drop of 20% in 1988. Political instability, lack of credit, and the erosion of business confidence prompted declines of 20-70% in the financial, agricultural, commercial, manufacturing, and construction sectors between 1987 and 1989. Transits through the Panama Canal were off slightly, as were toll revenues. Unemployment remained about 23% during 1989. Imports of foodstuffs and crude oil increased during 1989, but capital goods imports continued their slide. Exports were widely promoted by Noriega trade delegations, but sales abroad remained stagnant.

GDP: $3.9 billion, per capita $1,648; real growth rate - 7.5% (1989 est.)

Inflation rate (consumer prices): - 0.1% (1989 est.)

Unemployment rate: 23% (1989 est.)

Budget: revenues $598 million; expenditures $750 million, including capital expenditures of $NA (1989 est.)

Exports: $220 million (f.o.b., 1989 est.); commodities--bananas 40%, shrimp 27%, coffee 4%, sugar, petroleum products; partners--US 90%, Central America and Caribbean, EC (1989 est.)

Imports: $830 million (f.o.b., 1989 est.); commodities--foodstuffs 16%, capital goods 9%, crude oil 16%, consumer goods, chemicals; partners--US 35%, Central America and Caribbean, EC, Mexico, Venezuela (1989 est.)

External debt: $5.2 billion (November 1989 est.)

Industrial production: growth rate - 4.1% (1989 est.)

Electricity: 1,113,000 kW capacity; 3,270 million kWh produced, 1,380 kWh per capita (1989)

Industries: manufacturing and construction activities, petroleum refining, brewing, cement and other construction material, sugar mills, paper products

Agriculture: accounts for 10% of GDP (1989 est.), 26% of labor force (1987); crops--bananas, rice, corn, coffee, sugarcane; livestock; fishing; importer of food grain, vegetables, milk products

Aid: US commitments, including Ex-Im (FY70-88), $515 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-87), $568 million; Communist countries (1970-88), $4 million

Currency: balboa (plural--balboas); 1 balboa (B) = 100 centesimos

Exchange rates: balboas (B) per US$1--1.000 (fixed rate)

Fiscal year: calendar year

NOTE: The information regarding Panama on this page is re-published from the 1990 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Panama Economy 1990 information contained here. All suggestions for corrections of any errors about Panama Economy 1990 should be addressed to the CIA.