Panama Economy - 2006

Economy - overview:
Panama's dollarised 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. A slump in the Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth in 2000-03; growth picked up in 2004 and 2005 led by export-oriented services and a construction boom stimulated by tax incentives. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. Unemployment remains high.

GDP (purchasing power parity):
$22.33 billion (2005 est.)

GDP (official exchange rate):
$15.11 billion (2005 est.)

GDP - real growth rate:
4.9% (2005 est.)

GDP - per capita (PPP):
$7,100 (2005 est.)

GDP - composition by sector:
agriculture: 7.6%
industry: 17.9%
services: 74.5% (2005 est.)

Labor force:
1.39 million
note: shortage of skilled labor, but an oversupply of unskilled labor (2005 est.)

Labor force - by occupation:
agriculture: 20.8%
industry: 18%
services: 61.2% (1995 est.)

Unemployment rate:
8.7% (2005 est.)

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:
56.4 (2000)

Inflation rate (consumer prices):
2.5% (2005 est.)

Investment (gross fixed):
17.8% of GDP (2005 est.)

Budget:
revenues: $3.426 billion
expenditures: $3.959 billion; including capital expenditures of $471 million (2005 est.)

Public debt:
73.2% of GDP (2005 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:
3.5% (2005 est.)

Electricity - production:
5.398 billion kWh (2003)

Electricity - consumption:
4.87 billion kWh (2003)

Electricity - exports:
175 million kWh (2003)

Electricity - imports:
25 million kWh (2003)

Oil - production:
0 bbl/day (2004 est.)

Oil - consumption:
78,000 bbl/day (2003 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day; note - imports oil

Natural gas - production:
0 cu m (2003 est.)

Natural gas - consumption:
0 cu m (2003 est.)

Current account balance:
-$559 million (2005 est.)

Exports:
$7.481 billion f.o.b.; note - includes the Colon Free Zone (2005 est.)

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

Exports - partners:
US 50.5%, Sweden 6.6%, Spain 5.1%, Netherlands 4.4%, Costa Rica 4.2% (2004)

Imports:
$8.734 billion f.o.b. (includes the Colon Free Zone) (2005 est.)

Imports - commodities:
capital goods, foodstuffs, consumer goods, chemicals

Imports - partners:
US 33.3%, Netherlands Antilles 8.1%, Japan 6%, Costa Rica 5.7%, Mexico 4.6%, Colombia 4.2% (2004)

Reserves of foreign exchange and gold:
$981 million (2005 est.)

Debt - external:
$9.859 billion (2005 est.)

Economic aid - recipient:
$197.1 million (1995)

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

Exchange rates:
balboas per US dollar - 1 (2005), 1 (2004), 1 (2003), 1 (2002), 1 (2001)