Because of its key geographic location, Panama's
economy is service-based, heavily weighted toward banking, commerce,
and tourism. The hand-over of the canal and military installations by
the US has given rise to new construction projects. The MOSCOSO
administration inherited an economy that is much more structurally
sound and liberalized than the one inherited by its predecessor. Even
though export demand is likely to remain slack in some key markets -
especially the Andean countries - GDP growth in 2000 probably will be
3% to 4%. Key reform initiatives from the previous administration -
including the privatization of public utilities - remain uncompleted.
Although President MOSCOSO is unlikely to overturn any previous
reforms, her populist leanings make it unlikely any new initiatives
will be undertaken in the near future. Indeed, the government has
failed to formulate a comprehensive economic policy framework, and the
only concrete step it has taken by yearend 1999 has been a hike in
agricultural tariffs.

purchasing power parity - $21 billion (1999 est.)

4.4% (1999 est.)

purchasing power parity - $7,600 (1999 est.)

agriculture: 8%
industry: 25%
services: 67% (1997 est.)

NA%

lowest 10%: 0.5%
highest 10%: 42.5% (1991)

1.5% (1999 est.)

1.044 million (1997 est.)
note: shortage of skilled labor, but an oversupply of unskilled labor

agriculture 18%, industry 18%, services
64% (1997 est.)

13.1% (1997 est.)

revenues: $2.4 billion
expenditures: $2.4 billion, including capital expenditures of $341
million (1997 est.)

construction, petroleum refining, brewing, cement and
other construction materials, sugar milling

0.4% (1995 est.)

4.523 billion kWh (1998)

fossil fuel: 25.56%
hydro: 73.78%
nuclear: 0%
other: 0.66% (1998)

4.329 billion kWh (1998)

13 million kWh (1998)

136 million kWh (1998)

bananas, rice, corn, coffee, sugarcane,
vegetables; livestock; shrimp

$4.7 billion (f.o.b., 1999 est.)

bananas, shrimp, sugar, coffee

US 40%, Sweden, Costa Rica, Spain, Benelux,
Honduras (1998)

$6.4 billion (f.o.b., 1999 est.)

capital goods, crude oil, foodstuffs, consumer
goods, chemicals

US 40%, Central America and Caribbean, Japan
(1998)

$7 billion (1999)

$197.1 million (1995)

1 balboa (B) = 100 centesimos

balboas (B) per US$1 - 1.000 (fixed rate)

calendar year