Economy Panama
Economy - overview:
Panama's dollarised economy rests primarily on a well-developed
services sector that accounts for three-fourths of GDP. Services
include operating the Panama Canal, banking, the Colon Free Zone,
insurance, container ports, flagship registry, and tourism. A slump
in the Colon Free Zone and agricultural exports, the global
slowdown, and the withdrawal of US military forces held back
economic growth in 2000-03; growth picked up in 2004 and 2005 led by
export-oriented services and a construction boom stimulated by tax
incentives. The government has implemented tax reforms, as well as
social security reforms, and backs regional trade agreements and
development of tourism. Unemployment remains high.
GDP (purchasing power parity):
$23.33 billion (2005 est.)
GDP (official exchange rate):
$14.89 billion (2005 est.)
GDP - real growth rate:
6.4% (2005 est.)
GDP - per capita (PPP):
$7,400 (2005 est.)
GDP - composition by sector:
agriculture: 6.8%
industry: 15.6%
services: 77.6% (2005 est.)
Labor force:
1.39 million
note: shortage of skilled labor, but an oversupply of unskilled
labor (2005 est.)
Labor force - by occupation:
agriculture: 20.8%
industry: 18%
services: 61.2% (1995 est.)
Unemployment rate:
9.8% (2005 est.)