Page last updated on February 5, 2013
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 Zone, insurance, container ports, flagship registry, and tourism. Economic growth will be bolstered by the Panama Canal expansion project that began in 2007 and is scheduled to be completed by 2014 at a cost of $5.3 billion - about 10% of current GDP. The expansion project will more than double the Canal's capacity, enabling it to accommodate ships that are too large to traverse the existing canal. The United States and China are the top users of the Canal. Panama also plans to construct a metro system in Panama City, valued at $1.2 billion and scheduled to be completed by 2014. Panama's booming transportation and logistics services sectors, along with aggressive infrastructure development projects, have lead the economy to continued high growth in 2012. Strong economic performance has not translated into broadly shared prosperity, as Panama has the second worst income distribution in Latin America. About 30% of the population lives in poverty; however, from 2006 to 2012 poverty was reduced by 10 percentage points, while unemployment dropped from 12% to 4.4% of the labor force in 2012. A US-Panama Trade Promotion Agreement was approved by Congress and signed into law in October 2011. Seeking removal from the Organization of Economic Development's gray-list of tax havens, Panama has also recently signed various double taxation treaties with other nations.
GDP (purchasing power parity):
$55.8 billion (2012 est.)
country comparison to the world: 92
$51.43 billion (2011 est.)
$46.51 billion (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP country ranks ]
GDP (official exchange rate):
$34.82 billion (2012 est.)
[see also: GDP (official exchange rate) country ranks ]
GDP - real growth rate:
8.5% (2012 est.)
country comparison to the world: 11
10.6% (2011 est.)
7.6% (2010 est.)
[see also:
GDP - real growth rate country ranks ]
GDP - per capita:
$15,300 (2012 est.)
country comparison to the world: 84
$14,300 (2011 est.)
$13,200 (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP - per capita country ranks ]
GDP - composition by sector:
agriculture: 3.8%
[see also: GDP - composition by sector - agriculture country ranks ]
industry:
16.8%
services:
79.4% (2012 est.)
Labor force:
1.509 million
country comparison to the world: 129
note:
shortage of skilled labor, but an oversupply of unskilled labor (2012 est.)
[see also: Labor force country ranks ]
Labor force - by occupation:
agriculture: 17%
[see also: Labor force - by occupation - agriculture country ranks ]
industry:
18.6%
services:
64.4% (2009 est.)
Unemployment rate:
4.4% (2012 est.)
country comparison to the world: 41
4.5% (2011 est.)
[see also:
Unemployment rate country ranks ]
Population below poverty line:
29% (2011 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%:
40.1% (2010 est.)
Distribution of family income - Gini index:
51.9 (2010 est.)
country comparison to the world: 17
56.1 (2003)
[see also:
Distribution of family income - Gini index country ranks ]
Investment (gross fixed):
30.1% of GDP (2012 est.)
country comparison to the world: 18
[see also: Investment (gross fixed) country ranks ]
Budget:
revenues: $9.219 billion
[see also: Budget revenues country ranks ]
expenditures:
$10.21 billion (2012 est.)
Taxes and other revenues:
26.5% of GDP (2012 est.)
country comparison to the world: 117
[see also: Taxes and other revenues country ranks ]
Budget surplus (+) or deficit (-):
-2.9% of GDP (2012 est.)
country comparison to the world: 103
[see also: Budget surplus (+) or deficit (-) country ranks ]
Public debt:
37% of GDP (2012 est.)
country comparison to the world: 97
40% of GDP (2011 est.)
[see also:
Public debt country ranks ]
Inflation rate (consumer prices):
6.1% (2012 est.)
country comparison to the world: 160
5.9% (2011 est.)
[see also:
Inflation rate (consumer prices) country ranks ]
Commercial bank prime lending rate:
6.6% (31 December 2012 est.)
country comparison to the world: 129
6.91% (31 December 2011 est.)
[see also:
Commercial bank prime lending rate country ranks ]
Stock of narrow money:
$7.488 billion (31 December 2012 est.)
country comparison to the world: 87
$6.107 billion (31 December 2011 est.)
[see also:
Stock of narrow money country ranks ]
Stock of broad money:
$29.72 billion (31 December 2012 est.)
country comparison to the world: 78
$25.73 billion (31 December 2011 est.)
[see also:
Stock of broad money country ranks ]
Stock of domestic credit:
$31.47 billion (31 December 2012 est.)
country comparison to the world: 71
$28.1 billion (31 December 2011 est.)
[see also:
Stock of domestic credit country ranks ]
Market value of publicly traded shares:
$10.68 billion (31 December 2011)
country comparison to the world: 70
$10.92 billion (31 December 2010)
$8.048 billion (31 December 2009)
[see also:
Market value of publicly traded shares 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:
10.9% (2011 est.)
country comparison to the world: 9
[see also: Industrial production growth rate country ranks ]
Current account balance:
-$4.191 billion (2012 est.)
country comparison to the world: 158
-$3.892 billion (2011 est.)
[see also:
Current account balance country ranks ]
Exports:
$17.97 billion (2012 est.)
country comparison to the world: 76
$16.93 billion (2011 est.)
note:
includes the Colon Free Zone
[see also:
Exports country ranks ]
Exports - commodities:
gold, bananas, shrimp, sugar, iron and steel waste, pineapples, watermelons
Exports - partners:
US 13.1%, South Korea 12.5%, Honduras 10.2%, Japan 9.3%, India 7%, Canada 4.4%, Mexico 4.2% (2011)
Imports:
$24.04 billion (2012 est.)
country comparison to the world: 70
