Panama Economy 1997

Economy - overview Because of its key geographic location, Panama's economy is service-based,heavily weighted toward banking, commerce, and tourism. Panama's former protectionistpolicies have taken their toll, and the economy has been sluggish the lasttwo years, with GDP growth at 1.9% in 1995 and 1.5% in 1996. Although tourismand the Panama Canal posted growth in 1996, most sectors remained stagnant,and some, like the Colon Free Zone, banana and shrimp exports, and construction,were down from 1995. Although the PEREZ BALLADARES administration has advancedan economic reform program designed to liberalize the trade regime, attractforeign investment, privatize state-owned enterprises, institute fiscal reform,and encourage job-creation through labor code reform, the positive effectsof this program have not yet been felt at the macroeconomic level. In 1996,the government concluded a Brady-type plan to restructure the country's commercialdebt - one of the highest in the world in per capita terms - allowing it toreenter international financial markets. Panama also completed all requirementsto join the World Trade Organization (WTrO) and is awaiting legislative ratificationto become a full member.

GDP purchasing power parity - $14 billion (1996 est.)

GDP - real growth rate 1.5% (1996 est.)

GDP - per capita purchasing power parity - $5,300 (1996 est.)

GDP - composition by sector
agriculture: 10%
industry : 16%
services: 74% (1995 est.)

Inflation rate - consumer price index 1.3% (1996 est.)

Labor force
total : 1.015 million (1996 est.)
by occupation: government and community services 31.8%, agriculture, hunting, and fishing26.8%, commerce, restaurants, and hotels 16.4%, manufacturing and mining 9.4%,construction 3.2%, transportation and communications 6.2%, finance, insurance,and real estate 4.3%
note: shortage of skilled labor, but an oversupply of unskilled labor

Unemployment rate 14% (1996 est.)

Budget
revenues : $1.86 billion
expenditures: $1.86 billion, including capital expenditures of $NA (1995)

Industries construction, petroleum refining, brewing, cement and other constructionmaterials, sugar milling

Industrial production growth rate 0.4% (1995 est.)

Electricity - capacity 1.1405 billion kW (1995)

Electricity - production 3.519 billion kWh (1995)

Electricity - consumption per capita 1,069 kWh (1995 est.)

Agriculture - products bananas, rice, corn, coffee, sugarcane, vegetables; livestock; fishing(shrimp)

Exports
total value: $570 million (f.o.b., 1996 est.)
commodities: bananas 43%, shrimp 11%, sugar 4%, clothing 5%, coffee 2%
partners: US 39%, EU, Central America and Caribbean

Imports
total value: $2.512 billion (c.i.f., 1996 est.)
commodities: capital goods 21%, crude oil 11%, foodstuffs 9%, consumer goods, chemicals
partners: US 40%, EU, Central America and Caribbean, Japan

Debt - external $5.6 billion (1996 est.)

Economic aid
recipient: ODA, $58 million (1993)

Currency 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 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Panama Economy 1997 information contained here. All suggestions for corrections of any errors about Panama Economy 1997 should be addressed to the CIA.