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	$77 billion (nominal, 2023); $179 billion (PPP, 2023);
GDP rank	81st (nominal, 2023); 79th (PPP, 2023);
GDP growth	10.0% (2022); 5.0% (2023f); 4.0% (2024f);
GDP per capita	$17,350 (nominal, 2023); $44,880 (PPP, 2024);
GDP per capita rank	59th (nominal, 2023); 51st (PPP, 2023);
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	0.805 very high (2021) (61st); 0.640 medium IHDI (2021);
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.

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, 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.

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