Flag: divided into four, equal rectangles; the top quadrants are white (hoist side) with a blue five-pointed star in the center and plain red, the bottom quadrants are plain blue (hoist side) and white with a red five-pointed star in the center
Economy ———-
Economic overview: Because of its key geographic location, Panama's economy is service-based, heavily weighted toward banking, commerce, and tourism. The manufacturing and agriculture sectors have become inefficient under protectionist policies. After fast growth during the early 1990s, the economy has slowed down in the last two years, with GDP growth at 2.8% in 1994 and in 1995. The slowdown has been due mostly to a reduction in construction activities and stagnation in the Colon Free Zone and financial services, the three fastest growing sectors early in the decade. To counter the slowdown, the PEREZ BALLADARES administration has launched an economic reform program designed to reverse unemployment, attract foreign investment, cut back the size of government, and modernize the economy. In 1995, Panama reached an agreement in principle to reschedule its commercial debt - one of the highest in the world in per capita terms - which will allow the country to reenter international financial markets. Panama should complete all requirements to join the World Trade Organization (WTrO) in 1996.
GDP: purchasing power parity - $13.6 billion (1995 est.)
GDP real growth rate: 2.8% (1995 est.)
GDP per capita: $5,100 (1995 est.)
GDP composition by sector: agriculture: 10% industry: 16% services: 74% (1995 est.)
Inflation rate (consumer prices): 1.1% (1995)
Labor force: 979,000 (1994 est.) by occupation: government and community services 31.8%, agriculture, hunting, and fishing 26.8%, commerce, restaurants, and hotels 16.4%, manufacturing and mining 9.4%, construction 3.2%, transportation and communications 6.2%, finance, insurance, and real estate 4.3% note: shortage of skilled labor, but an oversupply of unskilled labor
Unemployment rate: 13.8% (1995)