Panama

Click here for more Latin America Links and Resources

FITA helps you find
service providers for:

Market Research

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The beginning of the work to expand the Panama canal and the influx of foreign capital, more than Euro 1.64 billion, boosted growth which reached 8.5% in 2007, the highest rate in the Americas. President Torrijos congratulated himself on the drop in unemployment, which dropped to 7.3% and the elimination of the tax deficit. The public debt (Euro 7.2 billion) went from 70% of the GDP in 2004 to 60% in 2007.
Tourism had a prosperous year with growth near 20%. Almost a third of the visitors, a total of 1.4 million came from Europe. The building sector progressed by more than 17% thanks to the commencement of the new skyscraper building project and a highway joining the capital to Colon.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	17.13	19.49	23.09e	25.05e	26.85
GDP (constant prices, annual % change)	8.5	11.5	9.2e	3.0e	4.0
GDP per capita (USD)	5,217e	5,829	6,784	7,231	7,613e
Inflation rate (%)	2.5	4.2	8.8	3.7e	2.9
Unemployment rate (% of the labor force)	-	-	6.3	-	-
Current Account (billions USD)	-0.54	-1.43	-2.86	-2.54	-3.12e
Current Account (in % of GDP)	-3.1	-7.3	-12.4	-10.1	-11.6e

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

Panama has limited resources: construction wood, copper (the only product that is exported) and gold. Agriculture represents around 8% of the GDP and employs 20% of the active population, the main produce is bananas and all other fruits, corn, sugar, rice, coffee, prawns, construction wood, vegetables and livestock. The industrial sector is moderate and only contributes 12% of the GDP. Industrial activities are based mainly on industrial food preparations, dairy products, sugar refinery, clothes manufacturing, petroleum products, chemical products, paper and paper products, printing, furniture manufacturing and construction.
The service industry at almost 80% of the GDP is the real driver of the country's economy and involves: finances, insurance, health and medicine, transport, telecommunication, the canal and maritime services, tourism, the trade-free zone of the two points, public administration and trade. The free zone of Colon, which was established in 1953, is the foreign investment center of the manufacturing industry.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	15.7	17.2	67.1
Value added (in % of GDP)	6.7	16.5	76.8
Value added (annual % change)	1.7	11.7	11.7

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Panamean Balboa (PAB) - Average annual exchange rate for 1 USD	1.00	1.00	1.00	1.00	1.00

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 64.7/100
Position:: moderately free
World Rank:: 55 out of 179
Regional Rank:: 10 out of 29

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Panama is a country that is mainly directed towards export. The Colon Free-trade Zone, which is the 2nd largest free-trade zone in the world, behind Hong Kong, manifests to the country's openness to external trade. The external trade's portion in the GDP is more than 25%.

In 2007, Panamanian export accounted for a total of US $ 9.3 billion; main exported goods were fishing and sea products, bananas, petroleum products, sugar and coffee. Its three import partners are: the United States, Costa Rica and Japan. Imports in 2007 equalled US $ 12.6 billion; they were mainly electrical equipment, crude oil, food products, chemical products, cars and pharmaceutical products. Panama's main supplier was the United States (29.7% of the total).

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	6,274	7,617	8,933	10,190	12,521
Exports of goods (millions USD)	5,072	6,080	7,375	8,478	9,338
Imports of services (millions USD)	1,300	1,457	1,811	1,728	2,107
Exports of services (millions USD)	2,540	2,794	3,231	3,938	4,924
Imports of goods and services (annual % change)	-3.5	14.4	11.2	7.4	19.3
Exports of goods and services (annual % change)	-10.1	18.5	11.3	11.1	15.0
Imports of goods and services (in % of GDP)	58.5	63.9	69.1	69.5	75.0
Exports of goods and services (in % of GDP)	63.6	67.6	75.5	76.7	80.0
Trade Balance (millions USD)	-1,202	-1,537	-1,558	-1,712	-3,182
Trade Balance (including service) (millions USD)	38	-200	-138	498	-365
Foreign trade (in % of GDP)	122.1	131.5	144.5	146.2	155.0

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
United States	39.2%
Netherlands	10.7%
Costa Rica	5.8%
Sweden	5.5%
United Kingdom	5.4%
Spain	5.0%
China	4.3%
Italy	2.6%
Honduras	1.5%
Dominican Republic	1.5%
Nicaragua	1.2%
Colombia	1.1%
Belgium	1.0%
Mexico	0.8%
Guatemala	0.7%
El Salvador	0.7%
India	0.6%
Jamaica	0.5%
Germany	0.4%
South Korea	0.4%
See more countries	33.5%

Main suppliers (% of imports)	2008
United States	29.7%
Costa Rica	5.1%
China	5.0%
Japan	4.3%
Mexico	3.5%
Colombia	3.0%
South Korea	2.9%
Guatemala	1.7%
Spain	1.6%
Brazil	1.6%
Germany	1.4%
Peru	1.2%
El Salvador	1.0%
Ecuador	1.0%
Thailand	0.9%
Canada	0.8%
Italy	0.7%
Denmark	0.6%
Dominican Republic	0.6%
Chile	0.6%
See more countries	52.4%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	36.7%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	30.7%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	3.7%
Iron and steelIron and steel	3.1%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	2.6%
Meat and edible meat offalMeat and edible meat offal	2.1%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	2.0%
Aluminium and articles thereofAluminium and articles thereof	1.9%
Pharmaceutical productsPharmaceutical products	1.6%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	1.5%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.5%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	1.5%
Sugars and sugar confectionerySugars and sugar confectionery	1.4%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.7%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	0.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.6%
Copper and articles thereofCopper and articles thereof	0.5%
Plastics and articles thereofPlastics and articles thereof	0.5%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.5%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.5%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.4%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.4%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.2%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.1%
Lead and articles thereofLead and articles thereof	0.1%
Articles of iron or steelArticles of iron or steel	0.1%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.1%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.1%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.1%
Glass and glasswareGlass and glassware	0.1%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	0.1%
See more products	23.2%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	21.1%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	11.1%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	10.0%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	8.5%
Iron and steelIron and steel	4.7%
Pharmaceutical productsPharmaceutical products	3.0%
Plastics and articles thereofPlastics and articles thereof	3.0%
Articles of iron or steelArticles of iron or steel	2.6%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	2.2%
CerealsCereals	2.1%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.6%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.5%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.4%
Miscellaneous chemical productsMiscellaneous chemical products	1.3%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.2%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	1.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	1.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.1%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	1.1%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	1.1%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.0%
Aluminium and articles thereofAluminium and articles thereof	0.9%
FertilizersFertilizers	0.8%
Rubber and articles thereofRubber and articles thereof	0.8%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.8%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.8%
Ceramic productsCeramic products	0.7%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.7%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.7%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.6%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.6%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.5%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.5%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.4%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.4%
Glass and glasswareGlass and glassware	0.4%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.4%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.4%
Organic chemicalsOrganic chemicals	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.3%
Meat and edible meat offalMeat and edible meat offal	0.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.3%
Man-made filamentsMan-made filaments	0.3%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.1%
See more products	44.7%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Foreign Affairs (Spanish only)
Ministry of Economy and Finance (Spanish only)
Ministry of Commerce and Industry (Spanish only)
Ministry of Public Works (Spanish only)
Statistical Office: Statistics Office (Spanish only)
Central Bank: Ministry of Economy and Finance (Spanish only)
National Bank of Panama (Sapnish only)
Stock Exchange: Panama Stock Exchange
Search Engines: Google.com.pa
Panama1.com
Economic portals: Panama Canal Authority
Panama Financial Information Standards

Political outline

Executive Power: The President is both the chief of state and head of the government. The President is elected by popular vote to serve a five-year term, and has executive powers which include implementation of the law within the country and running the day-to-day affairs. He also appoints the Cabinet.
Legislative Power: The legislature in Panama is unicameral. The parliament, called the National Assembly, has 78 seats and its members are elected by popular vote for five-year terms. The legislature is a branch of the power which is equal to and independent of the executive. Legislative power is vested in both the government and the National Assembly.
Main political parties: Panama's political system is based on a multi-party system with parties having to get along in order to form coalition governments. The country's major political parties are:
- PRD (Democratic Revolutionary Party) – a centre-left political party,
- PA (Panamenista Party) – party is a homage to Dr. Arnulfo Arias Madrid who was president of Panama three times,
- PS (Socialist Party) – a nationalist party,
- Nationalist Republican Liberal Movement – a liberal party,
- PP (People's Party) – Christian democrats,
- PLN (National Liberal Party) – liberals.
Current political leaders: President: Martin TORRIJOS ESPINO (since September 2004) –PRD, heads the coalition government with PP
Next election dates: Presidential: 2014
National Assembly: 2014

Indicator of freedom of the press

World Rank:: 57/173
Evolution:: 3 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 2/7

Map of freedom 2007
Source: Freedom House

Any comments about this content? Report it to us.