Economy - overview:
Panama's dollar-based economy rests primarily on a well-developed services sector that accounts for more than three-quarters of GDP. Services include operating the Panama Canal, logistics, banking, the Colon Free Trade Zone, insurance, container ports, flagship registry, and tourism and Panama is a center for offshore banking. Panama's transportation and logistics services sectors, along with infrastructure development projects, have boosted economic growth; however, public debt surpassed $37 billion in 2016 because of excessive government spending and public works projects. The US-Panama Trade Promotion Agreement was approved by Congress and signed into law in October 2011, and entered into force in October 2012.

Future growth will be bolstered by the Panama Canal expansion project that began in 2007 and was completed in 2016 at a cost of $5.3 billion - about 10-15% of current GDP. The expansion project more than doubled the Canal's capacity, enabling it to accommodate high-capacity vessels such as tankers and neopanamax vessels that are too large to traverse the existing canal. The US and China are the top users of the Canal.

Strong economic performance has not translated into broadly shared prosperity, as Panama has the second worst income distribution in Latin America. About one-fourth of the population lives in poverty; however, from 2006 to 2012 poverty was reduced by 10 percentage points.

GDP (purchasing power parity):
$104.1 billion (2017 est.)
$98.82 billion (2016 est.)
$94.12 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 83
[see also: GDP country ranks ]

GDP (official exchange rate):
$61.84 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
5.4% (2017 est.)
5% (2016 est.)
5.8% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 42
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$25,400 (2017 est.)
$24,500 (2016 est.)
$23,700 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 80
[see also: GDP - per capita country ranks ]

Gross national saving:
38.9% of GDP (2017 est.)
39.2% of GDP (2016 est.)
36.8% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 10
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 45.6% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 10.7% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 42.9% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 3% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 41.9% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -44.2% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 2.4% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 15.7% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 82% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp

Industries:
construction, brewing, cement and other construction materials, sugar milling

Industrial production growth rate:
6.3% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 38
[see also: Industrial production growth rate country ranks ]

Labor force:
1.633 million (2017 est.)
note: shortage of skilled labor, but an oversupply of unskilled labor
country comparison to the world (CIA rank, may be based on non-current data): 129
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 17%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 18.6%
[see also: Labor force - by occupation - industry country ranks ]
services: 64.4% (2009 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
6% (2017 est.)
5.5% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 91
[see also: Unemployment rate country ranks ]

Population below poverty line:
23% (2015 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 1.1%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 38.9% (2014 est.)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
50.7 (2014 est.)
56.1 (2003)
country comparison to the world (CIA rank, may be based on non-current data): 14
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 12.43 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 13.44 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
20.1% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 152
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-1.6% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 94
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
37.8% of GDP (2017 est.)
37.4% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 138
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
0.9% (2017 est.)
0.7% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 47
[see also: Inflation rate (consumer prices) country ranks ]

Commercial bank prime lending rate:
7.52% (31 December 2017 est.)
7.53% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 112
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$8.347 billion (31 December 2017 est.)
$8.249 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 87
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$8.347 billion (31 December 2017 est.)
$8.249 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 89
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$51.05 billion (31 December 2017 est.)
$46.41 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 66
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$12.54 billion (31 December 2012 est.)
$10.68 billion (31 December 2011 est.)
$8.348 billion (31 December 2010 est.)
country comparison to the world (CIA rank, may be based on non-current data): 71
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$3.036 billion (2017 est.)
-$3.16 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 176
[see also: Current account balance country ranks ]

Exports:
$15.5 billion (2017 est.)
$14.7 billion (2016 est.)
note: includes the Colon Free Zone
country comparison to the world (CIA rank, may be based on non-current data): 74
[see also: Exports country ranks ]

Exports - partners:
US 18.9%, Netherlands 16.6%, China 6.5%, Costa Rica 5.4%, India 5.1%, Vietnam 5% (2017)

Exports - commodities:
fruit and nuts, fish, iron and steel waste, wood

Imports:
$21.91 billion (2017 est.)
$20.51 billion (2016 est.)
note: includes the Colon Free Zone
country comparison to the world (CIA rank, may be based on non-current data): 72
[see also: Imports country ranks ]

Imports - commodities:
fuels, machinery, vehicles, iron and steel rods, pharmaceuticals

Imports - partners:
US 24.4%, China 9.8%, Mexico 4.9% (2017)

Reserves of foreign exchange and gold:
$2.703 billion (31 December 2017 est.)
$3.878 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 114
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$91.53 billion (31 December 2017 est.)
$83.81 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 52
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$56.7 billion (31 December 2017 est.)
$50.62 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 57
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$11.38 billion (31 December 2017 est.)
$10.71 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 62
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
balboas (PAB) per US dollar -
1 (2017 est.)
1 (2016 est.)
1 (2015 est.)
1 (2014 est.)
1 (2013 est.)