Economy - overview Panama's economy is based primarily on a well-developed services sector that accounts for three-fourths of GDP. Services include the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump in Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth in 2000-01. The government plans public works programs, tax reforms, and new regional trade agreements in order to stimulate growth.

GDP purchasing power parity - $16.9 billion (2001 est.)

GDP - real growth rate 1.4% (2001 est.)

GDP - per capita purchasing power parity - $5,900 (2001 est.)

GDP - composition by sector
agriculture: 7%
industry: 17%
services: 76% (2000 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 48.5 (1997)

Inflation rate (consumer prices) 1% (2000 est.)

Labor force 1.1 million (2000 est.)
note: shortage of skilled labor, but an oversupply of unskilled labor

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

Unemployment rate 13% (2000 est.)

Budget
revenues: $1.9 billion
expenditures: $2 billion, including capital expenditures of $471 million (2000 est.)

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

Industrial production growth rate 2% (2000 est.)

Electricity - production 4.894 billion kWh (2000)

Electricity - production by source
fossil fuel: 29.49%
hydro: 69.11%
other: 1.4% (2000)
nuclear: 0%

Electricity - consumption 4.651 billion kWh (2000)

Electricity - exports 20 million kWh (2000)

Electricity - imports 120 million kWh (2000)

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

Exports $5.9 billion (f.o.b., 2001 est.)

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

Exports - partners US 45.9%, Sweden 8.1%, Benelux 5.3%, Costa Rica 5.1% (2000 est.)

Imports $6.7 billion (f.o.b., 2001 est.)

Imports - commodities capital goods, crude oil, foodstuffs, consumer goods, chemicals

Imports - partners US 33.1%, Ecuador 7.2%, Venezuela 6.6%, Japan 5.5% (2000 est.)

Debt - external $7.6 billion (2001 est.)

Economic aid - recipient $197.1 million (1995)

Currency balboa (PAB); US dollar (USD)

Currency code PAB; USD

Exchange rates balboas per US dollar - 1.000 (fixed rate)

Fiscal year calendar year

NOTE: The information regarding Panama on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Panama Economy 2002 information contained here. All suggestions for corrections of any errors about Panama Economy 2002 should be addressed to the CIA.