Panama: Current Economic Conditions
Panama - Real GDP Growth
1990 Prices
Percent Change, Year Ago
• •
Economy suffered in 1998. GDP growth slowed from 1997. Runaway inflation is under control since the early 1980s. Prices are stable as consumer prices have risen less than 1% in Panama City. Services sector accounts for roughly 72% of Panama’s GDP. Continued growth of Canal-associated services will lead to greater capital inflows. Should resolve future current account deficits. Equities declined in mid-1998. Russian devaluation.
20 15 10 5 0 -5 -10 -15 80 82 84 86 88 90 92 94 96 98
• •
•
Source: IFS
Panama - Inflation Rate
Consumer Price Index
Percent Change, Year Ago Percent
Panama - Current Account Balance
As Percent of GDP
15 10 5 0
14 12 10 8 6 4 2 0 80 82 84 86 88 90 92 94 96 98
-5 -10 -15
80
82
84
86
88
90
92
94
96
98
Source: IFS
Source: IFS
Panama - Exchange Rate
Balboas per US Dollar
PB/US$
Index
Panama - Equity Index
Panama Stock Exchange Index
800 700 600 500
0.4 0.6 0.8 1.0
400 1.2 1.4
Note: Balboas are pegged to the US dollar
300 200 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Source: IFS
1.6
100
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Source: Bloomberg
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Panama: Current Economic Conditions
Panama - Official Reserves
Total Reserves Minus Gold and as Percent of GDP
US$ Billions Percent
• •
Official reserves at highest level in nearly 20 years. Labor markets under pressure and high unemployment. Working-age population growing faster than the total population. Privatization of industry continues – government sold electricity holdings. Multilateral debt declined in the late 1980s. Risen recently to finance new Canal facilities and related services.
1.2 1.0 0.8 0.6
Reserves Minus Gold - L Reserves as % of GDP - R
14 12 10 8 6
• •
0.4 0.2 0.0
4 2 80 82 84 86 88 90 92 94 96 98 0
Sources: IFS; Datastream
Panama - Industrial Output
Industrial Output
Percent Change, Year Ago Percent
Panama - Unemployment Rate
Unemployment Rate
17 16
20 10
15 0 -10 -20 11
Note: Data not available for 1989-90
14 13 12
-30
80
82
84
86
88
90
92
94
96
98
10
80
82
84
86
88
90
92
94
96
98
Source: Datastream
Source: IFS
Panama - Multilateral Debt
As Percent of Total Debt
Percent Percent
Panama - Short Term Debt
As Percent of Total Debt
45 40 35 30 25 20 15
20 18 16 14 12 10 8
75
80
85
90
95
75
80
85
90
95
Source: World Bank
Source: World Bank
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V-52
Panama: International Trade
Panama - Composition of Exports 1997
•
In 1997, Panama exported $133.8 million of bananas. Number declined to $98 million in 1998 due to labor strikes. Shrimp exports proved to be Panama’s most valuable export in 1998. Panama expanded trade agreement with Costa Rica – leading Central American trading partner. More goods like jewelry and food products can be exported duty-free. The trade deficit continues to grow. Reduction of net exports from the Colon Free Zone.
•
Bananas 27% Other 54% Shrimp 15% Sugar 4%
So urce: Eco no mist Intelligence Unit
•
•
Panama - Composition of Imports 1997
Panama - Trade Balance
Merchandise Exports, Imports, and Balance
US$ Billions
0.4 0.3
Exports Imports Trade Balance
Capital goods 25%
0.2 0.1 -0.0
Other 56% Oil 9%
Food products 10%
-0.1 -0.2 -0.3
Note: Data not available for Nov. - Dec. 1996
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Source: IFS
So urce: Eco no mist Intelligence Unit
Panama - Destination of Exports 1997
Panama - Origin of Imports 1997
Other 30% Honduras 4% BelgiumLuxembourg 5% Costa Rica 6% US 47%
Other 32%
US 37%
Mexico 5% Sweden 8% Ecuador 6% Japan 7% Colon Free Zone 13%
So urce: Eco no mist Intelligence Unit
So urce: Eco no mist Intelligence Unit
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Panama: Finance and Demographics
Panama - Foreign Debt Service
As Percent of GDP
Percent
•
Public-sector investment in construction has increased in 1998. Banking sector suffered. Asset drops due to a decline of offshore deposits and interactions with foreign banks. Recent government actions have lowered debtservices costs. Foreign direct investment increased in the Canal and related services. The life expectancy for both males and females has increased more than 10 years since 1962.
25 20 15 10 5 0
•
• • •
80 82 84 86 88 90 92 94 96 98
Sources: Datastream; IFS
Panama - Foreign Direct Investment
Foreign Investment Flows
US$ Billions US$ Billions
Panama - Portfolio Investment
Portfolio Investment Liabilities
2.5 2.0
Inflows from Panama Outflows from Panama
1.5 1.0
1.5 0.5 0.0 -0.5 -0.5 -1.0 80 82 84 86 88 90 92 94 96 98 -1.0 80 82 84 86 88 90 92 94 96 98 1.0 0.5 0.0
Source: IFS
Source: IFS
Panama - Life Expectancy at Birth
Total Years
Years Percent
Panama - Literacy Rate
Adult Literacy Rate
95 90 85
80
Males Females Total
75
70 80 65 75 70
60
1962
Source: World Bank
1996
1960
Source: World Bank
1995
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