View source for Economy of Panama

{{Short description|None}}
{{Update|date=January 2021}}
{{Use American English|date=May 2017}}
{{Infobox economy
| country = [[Panama]]
| image = Panama City skyline.jpg
| image_size = 310px
| caption = [[Panama City]] is the capital and financial center of [[Panama]]
| currency = {{plainlist|
*[[Panamanian balboa]] (PAB, B/.)
*[[U.S. Dollar]] (USD, $)}}
| fixed exchange = 1 PAB = 1 USD
| year = Calendar year
| organs = [[World Trade Organization|WTO]], [[Central American Integration System|SICA]]
| group = {{plainlist|
*[[Developing country|Developing/Emerging]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*High-income economy<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>}}
| population = {{increase}} 4,176,873 (2018)<ref>{{cite web |url=https://data.worldbank.org/indicator/SP.POP.TOTL?locations=PA&name_desc=true |title=Population, total |publisher=[[World Bank]] |website=data.worldbank.org |access-date=22 August 2019}}</ref>
| gdp = {{plainlist|
*{{increase}} $91.73 billion (nominal, 2025)<ref name="IMFWEOPA">{{cite web |url=https://www.imf.org/external/datamapper/profile/PAN |title=IMF DataMapper: Panama |date=22 October 2024 |publisher=[[International Monetary Fund]]|website=imf.org}}</ref>
*{{increase}} $195.28 billion ([[Purchasing power parity|PPP]], 2025)<ref name="IMFWEOPA"/>}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|75th (nominal, 2024)]]
*[[List of countries by GDP (PPP)|77th (PPP, 2024)]]}}
| growth = {{plainlist|   
* {{Increase}} 10.0%&nbsp;(2022)<ref name="IMF_forecast">{{cite web | url=https://www.imf.org/en/Publications/WEO/Issues/2023/04/11/world-economic-outlook-april-2023 | title=The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and four years of COVID|work=[[International Monetary Fund]]|date=April 11, 2023 }}</ref> 
* {{Increase}} 5.0%&nbsp;{{abbr|(2023f)|2023 forecast}}<ref name="IMF_forecast"/> 
* {{Increase}} 4.0%&nbsp;{{abbr|(2024f)|2024 forecast}}<ref name="IMF_forecast"/>
}}
| per capita = {{plainlist|
*{{increase}} $20,090 (nominal, 2025)<ref name="IMFWEOPA"/>
*{{increase}} $42,770 (PPP, 2025)<ref name="IMFWEOPA"/>}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|57th (nominal, 2024)]]
*[[List of countries by GDP (PPP) per capita|45th (PPP, 2024)]]}}
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 2.4%
*[[Secondary sector of the economy|industry]]: 15.7%
*[[Tertiary sector of the economy|services]]: 82% 
*(2017 est.)<ref name="CIAWFPM">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/panama/ |title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=22 August 2019}}</ref>}}
| components = 
| inflation = -0.19% (2024)<ref name="IMFWEOPA"/>
| poverty = {{decreasePositive}} 13.4% (2023)<ref>{{cite web |title=Poverty headcount ratio at national poverty lines (% of population) - Panama |url=https://data.worldbank.org/indicator/SI.POV.NAHC?locations=PA |website=data.worldbank.org |publisher=World Bank |access-date=22 March 2020}}</ref>
| gini = {{decreasePositive}} 48.9 {{color|red|high}} (2023)<ref>{{cite web |url=https://data.worldbank.org/indicator/SI.POV.GINI?locations=PA&name_desc=true |title=GINI index (World Bank estimate) - Panama |publisher=[[World Bank]] |website=data.worldbank.org |access-date=22 March 2020}}</ref>
| hdi = {{plainlist|
*{{increase}} 0.839 {{color|darkgreen|very high}} (2023)<ref name="UNHDR">{{Cite web |date=6 May 2025 |title=Human Development Report 2025 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2025reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20250506051232/https://hdr.undp.org/system/files/documents/global-report-document/hdr2025reporten.pdf |archive-date=6 May 2025 |access-date=6 May 2025 |publisher=[[United Nations Development Programme]]}}</ref> ([[List of countries by Human Development Index|59th]])
*{{increase}} 0.664 {{color|darkorange|medium}} [[List of countries by inequality-adjusted HDI|(70th) IHDI]] (2023)<ref name="UNHDR"/>}}
| labor = {{plainlist|
*{{increase}} 2,063,132 (2019)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=PA&name_desc=true |title=Labor force, total - Panama |publisher=[[World Bank]] |website=data.worldbank.org |access-date=12 January 2020}}</ref>
*{{increase}} 61.5% employment rate (2018)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=PA&name_desc=true |title=Employment to population ratio, 15+, total (%) (national estimate) - Panama |publisher=[[World Bank]] |website=data.worldbank.org |access-date=12 January 2020}}</ref>
*shortage of skilled labor, but an oversupply of unskilled labor<ref name="CIAWFPM"/>}}
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 17%
*[[Secondary sector of the economy|industry]]: 18.6%
*[[Tertiary sector of the economy|services]]: 64.4% (2009 est.)<ref name="CIAWFPM"/>}}
| unemployment = {{increaseNegative}} 6% (2017 est.)<ref name="CIAWFPM"/>
| industries = [[construction]], [[brewing]], [[cement]] and other [[construction materials]], [[sugar]] [[Mill (grinding)|milling]]
| exports = {{plainlist|
*{{increase}} $15.5 billion (2017 est.)<ref name="CIAWFPM"/>
*includes the Colón Free Zone}}
| export-goods = fruit and nuts, fish, iron and steel waste, wood
| export-partners = {{plainlist|
*{{flag|United States}} 18.9%
*{{flag|Netherlands}} 16.6%
*{{flag|China}} 6.5%
*{{flag|Costa Rica}} 5.4%
*{{flag|India}} 5.1%
*{{flag|Vietnam}} 5% 
*(2017)<ref name="CIAWFPM"/>}}
| imports = {{plainlist|
*{{increase}} $21.91 billion (2017 est.)<ref name="CIAWFPM"/>
*includes the Colón Free Zone}}
| import-goods = fuels, machinery, vehicles, iron and steel rods, pharmaceuticals
| import-partners = {{plainlist|
*{{flag|United States}} 24.4%
*{{flag|China}} 9.8%
*{{flag|Mexico}} 4.9%
*(2017)<ref name="CIAWFPM"/>}}
| current account = {{increase}} −$3.036 billion (2017 est.)<ref name="CIAWFPM"/>
| FDI = {{plainlist|
*{{increase}} $56.7 billion (31 December 2017 est.)<ref name="CIAWFPM"/>
*{{increase}} Abroad: $11.38 billion (31 December 2017 est.)<ref name="CIAWFPM"/>}}
| gross external debt = {{increaseNegative}} $91.53 billion (31 December 2017 est.)<ref name="CIAWFPM"/>
| debt = {{increaseNegative}} 37.8% of GDP (2017 est.)<ref name="CIAWFPM"/>
| revenue = 12.43 billion (2017 est.)<ref name="CIAWFPM"/>
| expenses = 13.44 billion (2017 est.)<ref name="CIAWFPM"/>
| balance = −1.6% (of GDP) (2017 est.)<ref name="CIAWFPM"/>
| aid = 
| credit = {{plainlist|
*[[Standard & Poor's]]:<ref>{{cite web |title= Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=26 May 2011}}</ref>
*BBB (Domestic)
*BBB (Foreign)
*AAA (T&C Assessment)
*Outlook: Stable<ref name=guardian>{{cite news |title=How Fitch, Moody's and S&P rate each country's credit rating |date=15 April 2011 |first1=Simon |last1=Rogers |first2=Ami |last2=Sedghi |work=The Guardian |url=https://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |access-date=28 May 2011}}</ref>
*[[Moody's]]:<ref name=guardian/>
*Baa2
*Outlook: Stable
*[[Fitch Group|Fitch]]:<ref name=guardian/>
*BBB
*Outlook: Positive}}
| reserves = {{decrease}} $2.703 billion (31 December 2017 est.)<ref name="CIAWFPM"/>
| spelling = US
}}

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 [[Transport in Panama|flagship registry]], medical and health and [[Tourism in Panama|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.<ref>{{Cite journal |last=Guerrón Montero |first=Carla |date=2024 |title=Panama's Path Since the US Invasion |url=https://online.ucpress.edu/currenthistory/article/123/850/69/199813/Panama-s-Path-Since-the-US-Invasion |journal=Current History |volume=123 |issue=850 |pages=69–73 |doi=10.1525/curh.2024.123.850.69|url-access=subscription }}</ref> 

The country's industry includes the manufacturing of aircraft spare parts, cement and ceramics, drinks, adhesives, and textiles. Additionally, exports from Panama include bananas, shrimp, sugar, coffee, and clothing. [[Panama]]'s economy is fully [[dollarized]],<ref name="fully dollarized">{{cite web| url=http://www.imf.org/external/pubs/ft/issues/issues24/index.htm | title=Full Dollarization The Pros and Cons | last1=Berg | first1=Andrew |last2=Borensztein |first2= Eduardo | publisher=[[International Monetary Fund]] | date=2008-12-01 |access-date=2009-06-16 }}</ref><ref>{{cite web|url=http://data.worldbank.org/country/panama |title=Panama |publisher=[[World Bank]] |access-date=21 August 2019}}</ref> 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.

==Economic history==
{{Main|Economic history of Panama}}
Since the early 16th century, Panama's geographic location gave the country a comparative advantage. From the earliest Spanish times, ports on each coast and a trail between them handled much of Spain's colonial trade to the benefit of the inhabitants of the port cities.<ref name="csecon" />

Panama has always been dependent on world commerce for its prosperity,<ref name="csecon">{{Country study |country=Panama |abbr=pa|editor=Sandra W. Meditz & Dennis M. Hanratty |date=December 1987 |section=Growth and Structure of the Economy |author=Scott D. Tollefson }}</ref> and it is affected by the cyclical nature of international trade. The economy stagnated in the 18th century as colonial exchange via the isthmus declined. In the mid-19th century, Panama's economy boomed as a result of increased cargo and passengers associated with the [[California Gold Rush]]. A railroad across the isthmus, completed in 1855, extended economic growth for about fifteen years until completion of the first transcontinental railroad in the United States led to a decline in trans-isthmian traffic.

France's efforts to construct a canal across the isthmus in the 1880s and efforts by the United States in the early 20th century stimulated the Panamanian economy.<ref name="csecon" /> The United States completed the canal in 1914.<ref>{{cite web |title=Building the Panama Canal, 1903–2030 |url=https://history.state.gov/milestones/1899-1913/panama-canal |website=history@state.gov |publisher=Office of the Historian, Bureau of Public Affairs}}</ref> However, the world depression of the 1930s reduced international trade and canal traffic, causing widespread unemployment in the terminal cities and generating a flow of workers to subsistence farming. During [[World War II]], canal traffic did not increase, but the economy boomed as the convoy system and the presence of United States forces, sent to defend the canal, increased foreign spending in the canal cities. The end of the war was followed by an economic depression and another movement of unemployed people into agriculture.<ref name="csecon" />

The postwar depression gave way to rapid economic expansion between 1950 and 1970. All sectors contributed to the growth. Agricultural output rose, and commerce evolved into a relatively sophisticated wholesale and retail system. Banking, tourism, and the export of services to the Canal Zone grew rapidly. Most importantly, an increase in world trade provided a major stimulus to use of the canal and to the economy.<ref name="csecon" />

In the 1970s and 1980s, Panama's growth fluctuated with the vagaries of the world economy. After 1973, economic expansion slowed considerably as a result of a number of international and domestic factors. In the early 1980s, the economy rebounded. The acute recession in Latin America after 1982, however, wreaked havoc on Panama's economy.<ref name="csecon" /> This period coincided with the rise to power of General [[Manuel Noriega]] during which Panama became increasingly indebted.<ref name="IMFhistory">{{cite book | url=https://www.imf.org/external/pubs/ft/history/2001/ch16.pdf | pages=799–803 | title=Silent Revolution - The International Monetary Fund 1979–1989 | first=James M. | last= Boughton | date= 1 October 2001 | publisher=IMF}}</ref>

The United States started to pursue Noriega, culminating in sanctions that froze Panama's assets in the United States, and because Panama used the US dollar it was forced to default on its IMF debt in 1987.<ref name="IMFhistory" /> Economic turmoil in the country included a general strike and the banking system closing down for two months.<ref name="IMFhistory" /> The [[US invasion of Panama|United States invaded Panama]] in 1989 and forced the surrender of Noriega.<ref name="IMFhistory" /> Panama regained access to IMF funds in 1992.<ref>Boughton (2001), p763</ref>

After taking office in 1994, President [[Ernesto Perez Balladares]] instituted an economic liberalization program designed to liberalize the trade regime, attract foreign investment, privatize state-owned enterprises, institute fiscal discipline. After two years of near-stagnation, there was strong GDP growth in 1997–1998. The most important sectors which drove growth were the Panama Canal and the shipping and port activities of the [[Colón Free Trade Zone]].

During the Moscoso administration beginning in 1999, Moscoso attempted to strengthen social programs. Moscoso's administration successfully handled the Panama Canal transfer and was effective in the administration of the Canal.

Under the [[Martín Torrijos]] administration beginning in 2004, Panama continued strong economic growth and initiated the 2007–2016 [[Panama Canal expansion project]].<ref name=NYT062016>{{cite news | url=https://www.nytimes.com/aponline/2016/06/26/world/americas/ap-lt-panama-canal-expansion.html?ref=world&_r=0 | title=Panama Canal Opens $5B Locks, Bullish Despite Shipping Woes | author=The Associated Press | author-link=The Associated Press | work=[[The New York Times]] | date=2016-06-26 | access-date=2016-06-26}}</ref> The canal expansion doubled the waterway capacity.<ref name=NYT062016/> Strong economic performance had reduced the national poverty level to 29% in 2008.

In 2008, Panama had the second most unequal income distribution in Latin America. The Torrijos government implemented tax reforms, as well as social security reforms, and backed regional trade agreements and development of tourism. Not a [[CAFTA]] signatory, Panama in December 2006 independently negotiated a free trade agreement with the US.

In May 2009, [[Ricardo Martinelli]] was elected president, and promised to promote free trade, establish a [[Panama Metro|metro system]],<ref>{{cite web |url=http://www.thepanamanews.com/pn/v_15/issue_19/economy_01a.html |title=Route for Panama City's Metro rail system unveiled |access-date=2010-07-25 |url-status=dead |archive-url=https://web.archive.org/web/20100119165135/http://www.thepanamanews.com/pn/v_15/issue_19/economy_01a.html |archive-date=2010-01-19 }}</ref> and complete the expansion plan for the Panama Canal.

Panama's economic role has been compared to that of [[Singapore]]: commentators have described the country as "the Singapore of central America",<ref>Montero, C. G. (2020), [https://books.google.com/books?id=EX_iDwAAQBAJ From Temporary Migrants to Permanent Attractions: Tourism, Cultural Heritage, and Afro-Antillean Identities in Panama], p. 4, quoting from ''[[The Economist]]'', 14 July 2011</ref> although Panama's involvement in the [[Odebrecht scandal]] has dealt a blow to official attempts to market Panama using this expression.<ref>Simpson, P., [https://www.cips.org/supply-management/analysis/2019/april/brazils-corruption-crisis/ Behind Brazil’s corruption crisis], ''Supply Management'', published 5 April 2019, accessed 22 April 2022</ref>

== Economic sectors ==

===Financial services===

Panama has a substantial financial services sector and no central bank to act as a [[lender of last resort]] to rescue banks that get in trouble. As a result, Panamanian banks are very conservatively run, with an average [[capital adequacy ratio]] of 15.6% in 2012, nearly double the legal minimum.<ref name="ECLAC12">{{cite web | url=http://www.cepal.org/publicaciones/xml/6/46986/Panama-completo-web-ing4sep12.pdf | title=Macroeconomic Report - Panama | date=June 2012 | publisher=United Nations Economic Commission for Latin America and the Caribbean | access-date=2014-08-20 | archive-date=2014-08-21 | archive-url=https://web.archive.org/web/20140821070549/http://www.cepal.org/publicaciones/xml/6/46986/Panama-completo-web-ing4sep12.pdf | url-status=dead }}</ref> The sector grew up providing trade finance for trade passing through the Canal, and later evolved into [[money laundering]] for the drug trade under Noriega. Since the [[2008 financial crisis]], the country has been trying to shake off its reputation [[Panama as a tax haven|as a tax haven]], signing [[Double taxation treaty|double taxation treaties]] with many (mostly OECD) countries and in April 2011 a treaty on the exchange of financial information with the United States.<ref name="ECLAC12" />

===Agriculture===
{{Excerpt|agriculture in Panama}}

=== Mining ===
{{Excerpt|Mineral industry of Panama}}[[File:Panama econ 1981.jpg|thumb|550px|An economic activity map of Panama, 1981.]]

=== Real estate ===
{{Excerpt|Real estate in Panama}}

==Taxation==
Taxation in Panama, which is governed by the Fiscal Code, is on a territorial basis; this is to say, that taxes apply only to income or gains derived through business carried on in Panama itself.<ref>[http://www.panamataxes.com/ "Panama Taxes Explained", ''Panama Taxes''] Feb, 2012.</ref>  The existence of a sales or administration office in Panama, or the re-invoicing of external transactions at a profit, does not of itself give rise to taxation if the underlying transactions take place outside Panama. Dividends paid out of such earnings are free of taxation.

In February 2005, Panama's unicameral legislature approved a major fiscal reform package in order to raise revenues from new business taxes, and increases the country's level of debt. The legislature voted 46 to 28 in favour of the measures, which include a new 1.4% tax on companies’ gross revenues, and a 1% levy on firms operating in the Colón Free Trade Zone – the largest free port in the Americas.

===Further reforms===
[[President of Panama|President]] [[Ricardo Martinelli]] had promised to implement a [[flat tax]] system with a flat tax of 10% and which promised to raise revenues, put inflation under control and which will allow enormous [[real wage]] gains.{{Citation needed|date=December 2009}} Instead the Martinelli government increased sales tax to 7% from 5%, as well as increasing other taxes, in order to finance many infrastructure projects around the country.

The current VAT rates are: 7% (standard rate); 15% (tobacco); 10% (alcohol and hotels); 5% (essential goods). The corporate tax rate is 25%, while the highest marginal income tax rate is 27%.

=== As tax haven ===
{{Excerpt|Panama as a tax haven}}

==Transportation==
{{main|Transport in Panama}}
In Panama City there are six highways: the Panama-Arraijan [[Bridge of the Americas]], Panama-Arraijan [[Centennial Bridge, Panama|Centennial Bridge]], Arraijan-Chorrera, [[Corredor Norte]], [[Corredor Sur]], and [[Autopista Panama-Colon]].

Panama's roads, traffic and transportation systems are generally safe, with older traffic lights having undergone a recent overhaul and most have been replaced by traffic lights that are capable of being controlled [and changed] remotely, even at busy intersections where they are not needed. Driving during the midday is usually slow and demanding due to dense traffic, frequent traffic jams, and street renovation programs. On roads where poor lighting and driving conditions prevail, night driving is difficult and in many cases, restricted by local authorities, this usually occurs in informal settlements. Night driving is particularly hazardous in these areas.<ref name=travel>{{citation-attribution|1=[https://travel.state.gov/travel/cis_pa_tw/cis/cis_994.html "Panama: Country-specific information"] . [[U.S. Department of State]] (March 18, 2009). }}</ref> Traffic in Panama moves on the right, and Panamanian law requires that drivers and passengers wear seat belts.<ref name=travel/>

Currently, Panama used to have an extensive and efficient, yet confusing to tourists, form of public transportation consisting of colorful painted buses colloquially known as ''{{lang|es|diablo rojo}}''. A ''{{lang|es|diablo rojo}}'' is usually "customized" or painted with bright colors, usually depicting famous actors, politicians or singers. It is now popular all over the city (and also in neighboring towns) for bus drivers to personally customize the interior and exterior of their ''{{lang|es|diablo rojo}}''. Panama City's streets experience frequent [[traffic jams]] due to poor planning.

"Diablos Rojos" are not allowed to operate in Panama city since 2010, except for recreational purposes. The Metrobus and the Metro are the only available public transportation methods.

==Statistics==
The following table shows the main economic indicators in 1980–2019 (with IMF staff estimates in 2020–2026). Inflation below 5% is in green.<ref>{{Cite web|title=Report for Selected Countries and Subjects|url=https://www.imf.org/en/Publications/WEO/weo-database/2021/October/weo-report|access-date=2022-02-07|website=IMF|language=en}}</ref>
{| class="wikitable" style="text-align:center;"
!Year
!GDP
<small>(in Bil. US$PPP)</small>
!GDP per capita
<small>(in US$ PPP)</small>
!GDP
<small>(in Bil. US$nominal)</small>
!GDP per capita
<small>(in US$ nominal)</small>
!GDP growth
<small>(real)</small>
!Inflation rate
<small>(in Percent)</small>
!Unemployment
<small>(in Percent)</small>
!Government debt
<small>(in % of GDP)</small>
|-
|1980
|7.0
|3,530.8
|4.1
|2,071.0
|{{Increase}}4.5%
|{{IncreaseNegative}}13.8%
|8.4%
|n/a
|-
|1981
|{{Increase}}8.4
|{{Increase}}4,120.3
|{{Increase}}4.6
|{{Increase}}2,288.4
|{{Increase}}9.2%
|{{IncreaseNegative}}7.3%
|{{IncreaseNegative}}9.2%
|n/a
|-
|1982
|{{Increase}}9.4
|{{Increase}}4,501.2
|{{Increase}}5.1
|{{Increase}}2,469.1
|{{Increase}}5.3%
|{{Increase}}4.3%
|{{IncreaseNegative}}11.0%
|n/a
|-
|1983
|{{Decrease}}9.3
|{{Decrease}}4,365.3
|{{Increase}}5.3
|{{Increase}}2,477.1
|{{Decrease}}-4.5%
|{{Increase}}2.1%
|{{IncreaseNegative}}11.6%
|n/a
|-
|1984
|{{Increase}}9.9
|{{Increase}}4,540.9
|{{Increase}}5.5
|{{Increase}}2,527.5
|{{Increase}}2.7%
|{{Increase}}1.6%
|{{IncreaseNegative}}12.2%
|n/a
|-
|1985
|{{Increase}}10.7
|{{Increase}}4,807.3
|{{Increase}}5.8
|{{Increase}}2,614.8
|{{Increase}}4.9%
|{{Increase}}1.0%
|{{IncreaseNegative}}14.4%
|n/a
|-
|1986
|{{Increase}}11.3
|{{Increase}}4,969.0
|{{Increase}}6.0
|{{Increase}}2,658.3
|{{Increase}}3.6%
|{{Increase}}-0.1%
|{{DecreasePositive}}12.5%
|n/a
|-
|1987
|{{Increase}}11.4
|{{Decrease}}4,893.2
|{{Increase}}6.1
|{{Decrease}}2,613.1
|{{Decrease}}-1.8%
|{{Increase}}1.0%
|{{IncreaseNegative}}14.1%
|n/a
|-
|1988
|{{Decrease}}10.2
|{{Decrease}}4,295.8
|{{Decrease}}5.3
|{{Decrease}}2,211.7
|{{Decrease}}-13.4%
|{{Increase}}0.4%
|{{IncreaseNegative}}18.8%
|n/a
|-
|1989
|{{Increase}}10.8
|{{Increase}}4,440.3
|{{Steady}}5.3
|{{Decrease}}2,171.7
|{{Increase}}1.6%
|{{Increase}}0.1%
|{{IncreaseNegative}}18.9%
|n/a
|-
|1990
|{{Increase}}12.1
|{{Increase}}4,878.5
|{{Increase}}5.7
|{{Increase}}2,313.0
|{{Increase}}8.1%
|{{Increase}}0.8%
|{{DecreasePositive}}16.7%
|n/a
|-
|1991
|{{Increase}}13.7
|{{Increase}}5,402.2
|{{Increase}}6.3
|{{Increase}}2,489.7
|{{Increase}}9.4%
|{{Increase}}1.5%
|{{DecreasePositive}}16.0%
|n/a
|-
|1992
|{{Increase}}15.1
|{{Increase}}5,853.3
|{{Increase}}7.2
|{{Increase}}2,771.0
|{{Increase}}8.2%
|{{Increase}}1.8%
|{{DecreasePositive}}14.7%
|n/a
|-
|1993
|{{Increase}}16.3
|{{Increase}}6,188.0
|{{Increase}}7.8
|{{Increase}}2,963.3
|{{Increase}}5.5%
|{{Increase}}0.5%
|{{DecreasePositive}}13.3%
|n/a
|-
|1994
|{{Increase}}17.1
|{{Increase}}6,367.1
|{{Increase}}8.3
|{{Increase}}3,095.2
|{{Increase}}2.8%
|{{Increase}}1.3%
|{{IncreaseNegative}}14.0%
|81.2%
|-
|1995
|{{Increase}}17.8
|{{Increase}}6,480.3
|{{Increase}}8.5
|{{Increase}}3,099.9
|{{Increase}}1.8%
|{{Increase}}0.9%
|{{IncreaseNegative}}14.0%
|{{DecreasePositive}}79.5%
|-
|1996
|{{Increase}}19.5
|{{Increase}}6,941.6
|{{Increase}}10.0
|{{Increase}}3,580.9
|{{Increase}}7.4%
|{{Increase}}1.3%
|{{IncreaseNegative}}14.3%
|{{DecreasePositive}}67.4%
|-
|1997
|{{Increase}}21.1
|{{Increase}}7,366.9
|{{Increase}}10.8
|{{Increase}}3,791.3
|{{Increase}}6.5%
|{{Increase}}1.3%
|{{DecreasePositive}}13.4%
|{{DecreasePositive}}62.4%
|-
|1998
|{{Increase}}22.9
|{{Increase}}7,834.9
|{{Increase}}11.8
|{{Increase}}4,027.3
|{{Increase}}7.3%
|{{Increase}}0.6%
|{{DecreasePositive}}11.6%
|{{DecreasePositive}}60.3%
|-
|1999
|{{Increase}}24.1
|{{Increase}}8,088.6
|{{Increase}}12.3
|{{Increase}}4,136.1
|{{Increase}}3.9%
|{{Increase}}1.3%
|{{DecreasePositive}}9.5%
|{{DecreasePositive}}57.4%
|-
|2000
|{{Increase}}25.3
|{{Increase}}8,328.9
|{{Increase}}12.5
|{{Decrease}}4,111.7
|{{Increase}}2.7%
|{{Increase}}1.4%
|{{IncreaseNegative}}13.5%
|{{DecreasePositive}}55.8%
|-
|2001
|{{Increase}}26.0
|{{Increase}}8,394.2
|{{Increase}}12.7
|{{Decrease}}4,095.0
|{{Increase}}0.6%
|{{Increase}}0.3%
|{{IncreaseNegative}}14.0%
|{{IncreaseNegative}}60.2%
|-
|2002
|{{Increase}}27.0
|{{Increase}}8,545.6
|{{Increase}}13.2
|{{Increase}}4,172.7
|{{Increase}}2.2%
|{{Increase}}1.0%
|{{DecreasePositive}}13.5%
|{{DecreasePositive}}59.3%
|-
|2003
|{{Increase}}28.7
|{{Increase}}8,907.5
|{{Increase}}13.9
|{{Increase}}4,312.6
|{{Increase}}4.2%
|{{Increase}}0.1%
|{{DecreasePositive}}13.0%
|{{DecreasePositive}}58.8%
|-
|2004
|{{Increase}}31.7
|{{Increase}}9,647.3
|{{Increase}}15.3
|{{Increase}}4,638.7
|{{Increase}}7.5%
|{{Increase}}0.5%
|{{DecreasePositive}}11.7%
|{{IncreaseNegative}}61.2%
|-
|2005
|{{Increase}}35.1
|{{Increase}}10,466.2
|{{Increase}}16.6
|{{Increase}}4,965.2
|{{Increase}}7.2%
|{{Increase}}2.9%
|{{DecreasePositive}}9.8%
|{{IncreaseNegative}}61.7%
|-
|2006
|{{Increase}}39.2
|{{Increase}}11,496.5
|{{Increase}}18.4
|{{Increase}}5,401.6
|{{Increase}}8.5%
|{{Increase}}2.5%
|{{DecreasePositive}}8.7%
|{{DecreasePositive}}56.9%
|-
|2007
|{{Increase}}45.2
|{{Increase}}12,999.8
|{{Increase}}21.3
|{{Increase}}6,127.0
|{{Increase}}12.1%
|{{Increase}}4.2%
|{{DecreasePositive}}6.4%
|{{DecreasePositive}}49.4%
|-
|2008
|{{Increase}}50.6
|{{Increase}}14,298.8
|{{Increase}}25.2
|{{Increase}}7,110.2
|{{Increase}}9.9%
|{{IncreaseNegative}}8.8%
|{{DecreasePositive}}5.6%
|{{DecreasePositive}}41.6%
|-
|2009
|{{Increase}}51.5
|{{Increase}}14,318.3
|{{Increase}}27.1
|{{Increase}}7,532.4
|{{Increase}}1.2%
|{{Increase}}2.4%
|{{IncreaseNegative}}6.6%
|{{DecreasePositive}}41.6%
|-
|2010
|{{Increase}}55.2
|{{Increase}}15,076.0
|{{Increase}}29.4
|{{Increase}}8,039.8
|{{Increase}}5.8%
|{{Increase}}3.5%
|{{DecreasePositive}}6.5%
|{{DecreasePositive}}40.5%
|-
|2011
|{{Increase}}62.7
|{{Increase}}16,845.1
|{{Increase}}34.7
|{{Increase}}9,314.7
|{{Increase}}11.3%
|{{IncreaseNegative}}5.9%
|{{DecreasePositive}}4.5%
|{{DecreasePositive}}37.8%
|-
|2012
|{{Increase}}70.4
|{{Increase}}18,596.3
|{{Increase}}40.4
|{{Increase}}10,674.5
|{{Increase}}9.8%
|{{IncreaseNegative}}5.7%
|{{DecreasePositive}}4.1%
|{{DecreasePositive}}36.0%
|-
|2013
|{{Increase}}79.8
|{{Increase}}20,727.2
|{{Increase}}45.6
|{{Increase}}11,841.9
|{{Increase}}6.9%
|{{Increase}}4.0%
|{{IncreaseNegative}}4.1%
|{{DecreasePositive}}35.6%
|-
|2014
|{{Increase}}89.3
|{{Increase}}22,827.4
|{{Increase}}49.9
|{{Increase}}12,757.0
|{{Increase}}5.1%
|{{Increase}}2.6%
|{{IncreaseNegative}}4.8%
|{{IncreaseNegative}}36.6%
|-
|2015
|{{Increase}}100.5
|{{Increase}}25,275.2
|{{Increase}}54.1
|{{Increase}}13,606.6
|{{Increase}}5.7%
|{{Increase}}0.1%
|{{IncreaseNegative}}5.1%
|{{DecreasePositive}}36.0%
|-
|2016
|{{Increase}}112.3
|{{Increase}}27,828.8
|{{Increase}}57.9
|{{Increase}}14,344.1
|{{Increase}}5.0%
|{{Increase}}0.7%
|{{IncreaseNegative}}5.5%
|{{DecreasePositive}}35.3%
|-
|2017
|{{Increase}}125.0
|{{Increase}}30,511.0
|{{Increase}}62.2
|{{Increase}}15,178.3
|{{Increase}}5.6%
|{{Increase}}0.9%
|{{IncreaseNegative}}6.1%
|{{DecreasePositive}}35.3%
|-
|2018
|{{Increase}}132.6
|{{Increase}}31,891.9
|{{Increase}}64.9
|{{Increase}}15,612.3
|{{Increase}}3.6%
|{{Increase}}0.8%
|{{DecreasePositive}}6.0%
|{{IncreaseNegative}}37.3%
|-
|2019
|{{Increase}}139.1
|{{Increase}}32,973.2
|{{Increase}}66.8
|{{Increase}}15,831.0
|{{Increase}}3.0%
|{{Increase}}-0.4%
|{{IncreaseNegative}}7.1%
|{{IncreaseNegative}}42.2%
|-
|2020
|{{Decrease}}115.5
|{{Decrease}}26,998.8
|{{Decrease}}52.9
|{{Decrease}}12,373.0
|{{Decrease}}-17.9%
|{{Increase}}-1.6%
|{{IncreaseNegative}}18.5%
|{{IncreaseNegative}}66.3%
|-
|2021
|{{Increase}}134.0
|{{Increase}}30,889.2
|{{Increase}}60.1
|{{Increase}}13,861.1
|{{Increase}}12.0%
|{{Increase}}1.4%
|{{DecreasePositive}}10.2%
|{{DecreasePositive}}62.2%
|-
|2022
|{{Increase}}144.6
|{{Increase}}32,886.6
|{{Increase}}64.4
|{{Increase}}14,643.9
|{{Increase}}5.0%
|{{Increase}}2.0%
|{{DecreasePositive}}9.2%
|{{DecreasePositive}}61.2%
|-
|2023
|{{Increase}}155.4
|{{Increase}}34,896.8
|{{Increase}}68.9
|{{Increase}}15,481.4
|{{Increase}}5.0%
|{{Increase}}2.0%
|{{DecreasePositive}}8.9%
|{{DecreasePositive}}60.6%
|-
|2024
|{{Increase}}166.9
|{{Increase}}37,005.5
|{{Increase}}73.8
|{{Increase}}16,372.1
|{{Increase}}5.0%
|{{Increase}}2.0%
|{{Steady}}8.9%
|{{DecreasePositive}}59.1%
|-
|2025
|{{Increase}}179.0
|{{Increase}}39,212.6
|{{Increase}}79.1
|{{Increase}}17,319.3
|{{Increase}}5.0%
|{{Increase}}2.0%
|{{Steady}}8.9%
|{{DecreasePositive}}57.2%
|-
|2026
|{{Increase}}191.9
|{{Increase}}41,522.5
|{{Increase}}84.7
|{{Increase}}18,326.5
|{{Increase}}5.0%
|{{Increase}}2.0%
|{{Steady}}8.9%
|{{DecreasePositive}}55.4%
|}
Nominal GDP per capita in Panama was (in balboas or US dollars) 11,691 in 2002, 13,099 in 2004, 14,004 in 2005 (Prelim), 15,141.9 in 2006 (est), as reported by Office of Statistics and Census, Government of Panama.<ref>{{Cite web |url=http://www.contraloria.gob.pa/dec/Publicaciones/16-17/Cuadro1.pdf |title=Archived copy |access-date=2007-08-14 |archive-date=2012-03-05 |archive-url=https://web.archive.org/web/20120305013707/http://www.contraloria.gob.pa/dec/Publicaciones/16-17/Cuadro1.pdf |url-status=dead }}</ref>  Growth from 2002 to 2006 was especially strong in the transport and communications sector, which became the biggest component of GDP, although many sectors also saw strong growth.  Real GDP rose 7.5% (2003–04), 6.9% (2004–05), 8.1% (2005–06).<ref>{{Cite web|url=http://www.contraloria.gob.pa/dec/|title=Dirección de Estadística y Censo - Panamá<!-- Bot generated title -->|website=Contraloria.gob.pa|access-date=14 January 2022}}</ref>

GDP growth in 2008 was 9.2%, reflecting a slowing of the robust growth of 11.5% seen in 2007. Although growth slowed to 2.4% in the first half of 2009, due to the global economic downturn, it is expected to improve in 2010 and is still one of the most positive growth rates in the region. Growth has been fueled by the construction sector, transportation, port and Panama Canal-related activities, and tourism. As a result of this growth, government deficit as a percentage of GDP dropped to 43% in 2009, and government-issued debt achieved investment grade in February 2010.<ref>{{Cite web |url=http://www.allbusiness.com/caribbean/558958-1.html  |access-date=2010-07-25 }}{{dead link|date=July 2022|bot=medic}}{{cbignore|bot=medic}}</ref> A recent United Nations report highlighted progress in poverty reduction from 2001 to 2007—overall poverty fell from 37% to 29%, and extreme poverty fell from 19% to 12%. However, Panama still has the second-most unequal income distribution in Latin America.<ref>{{Cite web|url=https://2009-2017.state.gov/r/pa/ei/bgn/2030.htm|title=Panama|website=U.S. Department of State}}</ref>

==See also==
* [[Central America–United Kingdom Association Agreement]]
* [[Mineral industry of Panama]]

==References==
{{Reflist}}

==External links==
* [http://www.mef.gob.pa Ministry of Economics and Finance] {{in lang|es}}
* [http://www.panabolsa.com/ Bolsa de Valores (Panama Stock Exchange)] {{Webarchive|url=https://web.archive.org/web/20090227130704/http://www.panabolsa.com/ |date=2009-02-27 }} {{in lang|es}}
* [https://web.archive.org/web/20060820020226/http://www.conaval.gob.pa/index.asp?id=1 Comisión Nacional de Valores (Panama SEC)] {{in lang|es}}
* [http://www.panamcham.com/ American Chamber of Commerce & Industry of Panama]

{{Panama topics}}
{{Americas topic|Economy of}}
{{World Trade Organization}}

{{DEFAULTSORT:Economy Of Panama}}
[[Category:Economy of Panama| ]]
[[Category:World Trade Organization member economies|Panama]]