Economy of Panama

Economy of Panama
	Panama City is the capital and financial center of Panama
Currency	Panamanian balboa (PAB, B/.); U.S. Dollar (USD, $);
Fiscal year	Calendar year
Trade organizations	WTO, SICA
Country group	Developing/Emerging; High-income economy;
Statistics
Population	4,176,873 (2018)
GDP	$87 billion (nominal, 2024); $202 billion (PPP, 2024);
GDP rank	75th (nominal, 2024); 77th (PPP, 2024);
GDP growth	10.0% (2022); 5.0% (2023f); 4.0% (2024f);
GDP per capita	$19,369 (nominal, 2024); $44,797 (PPP, 2024);
GDP per capita rank	57th (nominal, 2024); 45th (PPP, 2024);
GDP by sector	agriculture: 2.4%; industry: 15.7%; services: 82%; (2017 est.);
Inflation (CPI)	2.1% (2023 est.)
Population below poverty line	13.4% (2023)
Gini coefficient	49.2 high (2018)
Human Development Index	0.820 very high (2022) (57th); 0.647 medium (69th) IHDI (2022);
Labor force	2,063,132 (2019); 61.5% employment rate (2018); shortage of skilled labor, but an oversupply of unskilled labor;
Labor force by occupation	agriculture: 17%; industry: 18.6%; services: 64.4% (2009 est.);
Unemployment	6% (2017 est.)
Main industries	construction, brewing, cement and other construction materials, sugar milling
External
Exports	$15.5 billion (2017 est.); includes the Colón Free Zone;
Export goods	fruit and nuts, fish, iron and steel waste, wood
Main export partners	United States 18.9%; Netherlands 16.6%; China 6.5%; Costa Rica 5.4%; India 5.1%; Vietnam 5%; (2017);
Imports	$21.91 billion (2017 est.); includes the Colón Free Zone;
Import goods	fuels, machinery, vehicles, iron and steel rods, pharmaceuticals
Main import partners	United States 24.4%; China 9.8%; Mexico 4.9%; (2017);
FDI stock	$56.7 billion (31 December 2017 est.); Abroad: $11.38 billion (31 December 2017 est.);
Current account	−$3.036 billion (2017 est.)
Gross external debt	$91.53 billion (31 December 2017 est.)
Public finances
Government debt	37.8% of GDP (2017 est.)
Budget balance	−1.6% (of GDP) (2017 est.)
Revenues	12.43 billion (2017 est.)
Expenses	13.44 billion (2017 est.)
Credit rating	Standard & Poor's:; BBB (Domestic); BBB (Foreign); AAA (T&C Assessment); Outlook: Stable; Moody's:; Baa2; Outlook: Stable; Fitch:; BBB; Outlook: Positive;
Foreign reserves	$2.703 billion (31 December 2017 est.)
	Main data source: CIA World Fact Book ; All values, unless otherwise stated, are in US dollars.

The economy of Panama is based mainly on the tourism and services sector, which accounts for nearly 80% of its GDP and accounts for most of its foreign income. Services include banking, commerce, insurance, container ports, and flagship registry, medical and health and tourism. Historically, the Panama Canal (and the nearby Colón Free Trade Zone) was the key source of Panama's income, but its importance has been displaced by the services sector.^[14]

The country's industry includes the manufacturing of aircraft spare parts, cement, drinks, adhesives, and textiles. Additionally, exports from Panama include bananas, shrimp, sugar, coffee, and clothing. Panama's economy is fully dollarized,^[15]^[16] with the US dollar being legal tender in the country. Panama was the first foreign country to adopt the U.S. dollar as its legal currency (1903) after its secession from Colombia (with U.S. help) temporarily deprived it of a local currency. Panama is a high income economy with a history of low inflation.

^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
^ "Population, total". data.worldbank.org. World Bank. Retrieved 22 August 2019.
^ ^a ^b ^c ^d ^e "Report for Selected Countries and Subjects: April 2024". imf.org. International Monetary Fund.
^ ^a ^b ^c "The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and three years of COVID". International Monetary Fund. April 11, 2023.
^ ^a ^b ^c ^d ^e ^f ^g ^h ⁱ ^j ^k ^l ^m ⁿ ^o ^p ^q "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 22 August 2019.
^ "Poverty headcount ratio at national poverty lines (% of population) - Panama". data.worldbank.org. World Bank. Retrieved 22 March 2020.
^ "GINI index (World Bank estimate) - Panama". data.worldbank.org. World Bank. Retrieved 22 March 2020.
^ ^a ^b "Human Development Report 2023/2024" (PDF). United Nations Development Programme. 13 March 2024. Archived (PDF) from the original on 13 March 2024. Retrieved 6 May 2024.
^ "Labor force, total - Panama". data.worldbank.org. World Bank. Retrieved 12 January 2020.
^ "Employment to population ratio, 15+, total (%) (national estimate) - Panama". data.worldbank.org. World Bank. Retrieved 12 January 2020.
^ "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011.
^ ^a ^b ^c Rogers, Simon; Sedghi, Ami (15 April 2011). "How Fitch, Moody's and S&P rate each country's credit rating". The Guardian. Retrieved 28 May 2011.
^ Guerrón Montero, Carla (2024). "Panama's Path Since the US Invasion". Current History. doi:10.1525/curh.2024.123.850.69.
^ Berg, Andrew; Borensztein, Eduardo (2008-12-01). "Full Dollarization The Pros and Cons". International Monetary Fund. Retrieved 2009-06-16.
^ "Panama". World Bank. Retrieved 21 August 2019.

[1] "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.

[2] "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.

[3] "Population, total". data.worldbank.org. World Bank. Retrieved 22 August 2019.

[IMFWEOPA-4] "Report for Selected Countries and Subjects: April 2024". imf.org. International Monetary Fund.

[IMF_forecast-5] "The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and three years of COVID". International Monetary Fund. April 11, 2023.

[CIAWFPM-6] ^ ^a ^b ^c ^d ^e ^f ^g ^h ⁱ ^j ^k ^l ^m ⁿ ^o ^p ^q "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 22 August 2019.

[7] "Poverty headcount ratio at national poverty lines (% of population) - Panama". data.worldbank.org. World Bank. Retrieved 22 March 2020.

[8] "GINI index (World Bank estimate) - Panama". data.worldbank.org. World Bank. Retrieved 22 March 2020.

[pahdi-9] "Human Development Report 2023/2024" (PDF). United Nations Development Programme. 13 March 2024. Archived (PDF) from the original on 13 March 2024. Retrieved 6 May 2024.

[10] "Labor force, total - Panama". data.worldbank.org. World Bank. Retrieved 12 January 2020.

[11] "Employment to population ratio, 15+, total (%) (national estimate) - Panama". data.worldbank.org. World Bank. Retrieved 12 January 2020.

[12] "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011.

[guardian-13] Rogers, Simon; Sedghi, Ami (15 April 2011). "How Fitch, Moody's and S&P rate each country's credit rating". The Guardian. Retrieved 28 May 2011.

[14] Guerrón Montero, Carla (2024). "Panama's Path Since the US Invasion". Current History. doi:10.1525/curh.2024.123.850.69.

[fully_dollarized-15] Berg, Andrew; Borensztein, Eduardo (2008-12-01). "Full Dollarization The Pros and Cons". International Monetary Fund. Retrieved 2009-06-16.

[16] "Panama". World Bank. Retrieved 21 August 2019.

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Statistics
Panama City is the capital and financial center of Panama
Currency	Panamanian balboa (PAB, B/.) U.S. Dollar (USD, $)
Fiscal year	Calendar year
Trade organizations	WTO, SICA
Country group	Developing/Emerging^[1] High-income economy^[2]
Population	4,176,873 (2018)^[3]
GDP	$87 billion (nominal, 2024)^[4] $202 billion (PPP, 2024)^[4]
GDP rank	75th (nominal, 2024) 77th (PPP, 2024)
GDP growth	10.0% (2022)^[5] 5.0% (2023f)^[5] 4.0% (2024f)^[5]
GDP per capita	$19,369 (nominal, 2024)^[4] $44,797 (PPP, 2024)^[4]
GDP per capita rank	57th (nominal, 2024) 45th (PPP, 2024)
GDP by sector	agriculture: 2.4% industry: 15.7% services: 82% (2017 est.)^[6]
Inflation (CPI)	2.1% (2023 est.)^[4]
Population below poverty line	13.4% (2023)^[7]
Gini coefficient	49.2 high (2018)^[8]
Human Development Index	0.820 very high (2022)^[9] (57th) 0.647 medium (69th) IHDI (2022)^[9]
Labor force	2,063,132 (2019)^[10] 61.5% employment rate (2018)^[11] shortage of skilled labor, but an oversupply of unskilled labor^[6]
Labor force by occupation	agriculture: 17% industry: 18.6% services: 64.4% (2009 est.)^[6]
Unemployment	6% (2017 est.)^[6]
Main industries	construction, brewing, cement and other construction materials, sugar milling
External
Exports	$15.5 billion (2017 est.)^[6] includes the Colón Free Zone
Export goods	fruit and nuts, fish, iron and steel waste, wood
Main export partners	United States 18.9% Netherlands 16.6% China 6.5% Costa Rica 5.4% India 5.1% Vietnam 5% (2017)^[6]
Imports	$21.91 billion (2017 est.)^[6] includes the Colón Free Zone
Import goods	fuels, machinery, vehicles, iron and steel rods, pharmaceuticals
Main import partners	United States 24.4% China 9.8% Mexico 4.9% (2017)^[6]
FDI stock	$56.7 billion (31 December 2017 est.)^[6] Abroad: $11.38 billion (31 December 2017 est.)^[6]
Current account	−$3.036 billion (2017 est.)^[6]
Gross external debt	$91.53 billion (31 December 2017 est.)^[6]
Public finances
Government debt	37.8% of GDP (2017 est.)^[6]
Budget balance	−1.6% (of GDP) (2017 est.)^[6]
Revenues	12.43 billion (2017 est.)^[6]
Expenses	13.44 billion (2017 est.)^[6]
Credit rating	Standard & Poor's:^[12] BBB (Domestic) BBB (Foreign) AAA (T&C Assessment) Outlook: Stable^[13] Moody's:^[13] Baa2 Outlook: Stable Fitch:^[13] BBB Outlook: Positive
Foreign reserves	$2.703 billion (31 December 2017 est.)^[6]
Main data source: *CIA World Fact Book* All values, unless otherwise stated, are in US dollars.