ECONOMY IN PANAMA
PANAMA XXI CENTURY IT MEANS PROGRESS
Panama, with a population of just over 3.5 million inhabitants, has a privileged position in various rankings of growth and development of Latin America, such as the human development index, the economy in Panama is located at the top of Central America and second Latin America.
Panama’s economy due to the needs of international trade rather than domestic demand. It is a sparsely populated country, has only 3.5 million inhabitants and yet now stands as the second most competiutiva economy of the region.
After the permanent transfer of the Canal in 1999, its international business conditioned changes in the legal framework that promoted and encouraged Panama’s economy.
Some data reflecting the rapid development of the Panamanian economy and are growth factors and attracting foreign investment:
- The economy in Panama is dollarized. No central bank to set monetary tightening inorganic or print money. However has a Superintendency of Banks, which establishes criteria and provides assurances to international agencies to prevent fraudulent origin capitals use the Panama economy for legal entry into the banking system.
- It has important Free Zones where circulating goods and capital without restrictions and taxes are not paid.
- Panama is among the countries with the largest merchant fleet. Many shipping companies use so-called “flags of convenience”.
- The economy in Panama has a greater focus on the tertiary sector, particularly in international trade and the financial sector, which has more than a quarter of the GDP.
- Panama’s banking system has been recognized internationally as one of the strongest in the continent.
- Tourism is one of the main activities of the country, with emphasis on tourism for commercial exploration, beaches and trade.
The Panamanian economy has some particular aspects as its rapid growth despite not having oil or mining or raw materials of high international prices riches.
The structure of the GDP of Panama is also unique:
- Sector Services (Canal, Banking, Ports-Airports, Trade and Tourism) 76.5%
- Primary Sector (Agriculture 4.3% Industrial 11.9% Mining 0.9%) 17.1%
- Public Sector 6.4%
The per capita income of Panamanians is also higher than in many other countries in the region, currently averaging USD $ 13,000 levels have been increasing over the years.
Inflation in Panama around two percentage points and this generates significant savings capacity moving to local and foreign society living permanently Panama.
The Panama Canal expansion since 2007 has had a major impact on the economy over the past eight years. It has generated more than 40,000 direct jobs, has generated a significant flow of families who have moved to Panama, also has fostered the growth of sectors such as construction, lodging, telecommunications, transportation, materials and services.
It is projected that the Canal expansion will raise the number of visitors for tourism and business to the isthmus. That the throughput of larger vessels which will increase toll rates and a significant increase of qualified personnel to manage both channel operation directly, as the corelacionados sectors have increased their be required to double productivity directly.