Panama’s economy largely depends on its service sector. Tourism and foreign direct investment has helped the country to flourish. Panama Canal also contributes to the nation’s economy.

Gross domestic product

Gross domestic product (GDP) at the end of Q3 2010 was PAB 15.29 billion, an increase of 7% over Q3 2009 GDP of PAB 14.29 billion.

(Source: Central Statistics)

(Source: Central Statistics)

In 2009, GDP per capita was PAB 5,627 as compared to PAB 5,541 in 2008.

(Source: Central Statistics)

Gross national income

Gross National Income (GNI) of Panama in 2009 was PAB 21,066.3 million. In 2008, the country’s GNI was PAB 19,726 million.

GNI per capita for 2009 and 2008 was PAB 6,106 and PAB 5,810 respectively.

GNI per capita at PPP in 2010 was USD 13,347 as compared to USD 9,222 in 2005.

(Source: Central Statistics, UNDP.org)

Tax rates

Individual income tax rate

The highest tax rate on individual income in the country is 27%.

(Source: heritage.org)

Corporate tax rate:

Corporate tax is levied at 30% of net income or 1.401% of gross taxable income (whichever is greater).

(Source: heritage.org)

Inflation

In 2010, inflation rate was registered at 4.2% as compared to 2.4% in 2009. The inflation rate dipped to less than half of the inflation rate of 8.8% registered in 2008.

(Source: World Bank, newsroompanama.com)

FDI inflow

Foreign direct Investment inflow at the end of Q3 2010 was PAB 1,656.6 million. In 2009, FDI inflow was PAB 1,772.8 million.

(Source: Central Statistics)

Portfolio investment inflow

(Source: Central Statistics)

Central bank assets

In 2010, total assets of national banking system of Panama amounted to PAB 57,566 million. The total assets increased by 7.5% from 2009; when total assets were valued at PAB 53,538 million.

(Source: Central Statistics)

Consumer Price Index

Consumer price index in 2010 was 127.2. In 2009 the CPI was registered at 122.9.

Base, October, 2002 = 100.

(Source: Central Statistics)

Interest rates

Banks in Panama offer up to 3.5% interest rates on USD savings accounts and up to 5% on USD time deposits or Certificates of Deposit.

(Source: global-money.com)

External debt

Total external debt level in 2009 was USD 10,150.2 million. The amount of debt in 2008 was 19.7% lesser than 2009 and was registered at USD 8,477.3 million.

(Source: eclac.cl)

Money supply

According to the World Bank, money and quasi money in 2008 was PAB 19.6 billion as compared to USD 17.1 billion in 2007.

(Source: World Bank)

Official exchange rate

Panama uses US dollar as their currency. Balboa, the national currency of Panama, is used as a secondary currency.

(Source: erols.com)

The exchange rate of US dollar per Euro in 2010 was registered at 1.33. The exchange rate for 2009 was USD 1.44 per EUR.

(Source: European Central Bank)

Government finances

Fiscal balance

The government’s fiscal surplus in 2010 amounted to 2% of the GDP as compared to 1.35% in 2009.

(Source: economywatch.com)

Total revenue

According to preliminary estimates, central government revenue in 2010 was PAB 6,323.57 million. Central government revenues decreased by 2.3% over the previous year. Revenue in 2009 was PAB 6,474.15 million.

(Source: Central Statistics)

Tax revenue

Total tax revenue collected by the government in 2010 was PAB 3,101.84 million. In 2009, tax revenue generated by the country was PAB 4,333.9 million.

(Source: Central Statistics)

Current account balance

The country recorded a current account deficit of PAB 2,523.3 million for the first three quarters of 2010. In 2009, the current account deficit was PAB 43.5 million.

(Source: Central Statistics)

Balance of payments

(Source: Central Statistics)

In 2010, the economically active population was recorded at 1.46 million individuals, an increase of 1.3% from 2009. In 2009, the country’s economically active population included 1.44 million persons.

(Source: Central Statistics)

In 2010, number of employed persons was 1.36 million as compared to 1.34 million in 2009.

Total labour force participation rate in August 2010 was 63.5. In urban areas, the participation rate was 64% against 62.7% in rural areas. Labour force participation rate amongst males and females was 80.4% and 47.5% respectively.

(Source: Central Statistics)

Total number of people working in agriculture, forestry, fishing and hunting was 252,122.

(Source: Central Statistics)

(Source: Central Statistics)

Unemployment rate

Unemployment rate in the country in 2010 was 6.8%, with the number of people being unemployed at 100,178. The rate of unemployment in last few years has dropped down to single digits. In 2009, the unemployment rate was 6.9%.

(Source: Central Statistics)

Minimum wage

The minimum wage prevailing in Panama since January 2010 is USD 416 per month.

(Source: panama-guide.com)

Median monthly wages in the country according to urban and rural areas of Panama is:

(Source: Central Statistics)

Level of unionisation

The country’s public sector employees do not have the right to form unions. However, they can form associations and their right to strike is restricted.

Few of the trade unions in the country are:

• Sindicato Nacional de Trabajadores de la Universidad de Panamá (SINTUP) - University workers’ union
• Sindicato Único Nacional de Trabajadores de la Industria de la Construcción y Similares (SUNTRACS) - Construction workers’ union

(Source: ITUC)

Panama has a democratic system of government. Regulatory environment in the country includes three branches –

• Executive (President and the Vice President)
• Legislative (71 member single member chamber)
• Judiciary

The President is the Head of the state and the current President of the country is Ricardo Martinelli. The term of President is of five years. President and members of legislative chamber are elected by votes at the same time.

The country’s parliament, known as the Asamblea Nacional or National Assembly is unicameral. The National Assembly is comprised of 71 members, who are directly elected for a term of five years.

Major political parties in the country include –

• Panameñista Party (formally Arnulfista Party)
• Partido Popular or Popular Party (PP)
• Democratic Change (Cambio Democratico)
• Democratic Revolutionary Party (PRD)
• Nationalist Republican Liberal Movement (MOLIRENA)
• Patriotic Union
• Liberal Party
• The Moral Vanguard Party

(Source:fco.gov.uk, IPU)

Regulatory Environment in Panama

Panama’s economic freedom score is 64.9 and is ranked 59^th in the 2011 Index of Economic Freedom. The country ranks 13^th out of 29 regional countries in the South and Central America/Caribbean region. Panama’s overall score is well above the global and regional averages.

(Source:Heritage.org)

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Panama is ranked 73^rd on this list which indicates that the corruption levels in the public departments in the country is fairly high.

Panama climbed on the CPI rankings since 2009 – it was ranked 84^th with a score of 3.4 which indicates the perceived levels of corruption have decreased in the country.

(Source:transparency.org)

Freedom of Information

Media in the country has the freedom to report without any interference. It has been observed by the organisation – Reporters without Borders that Panama’s media is an exception in the Central American region which is unsafe for journalists.

Panama is ranked 81^st in the world Press Freedom Index 2010 ranks Panama at 81^st rank with a score of 21.83 which indicates that media in Panama is restricted to some extent.

(Source: rsf.org)

Newspapers

• La Prensa
• El Siglo
• La Critica Libre
• El Panama America
• La Estrella de Panama
• Panama News

(Source: BBC)

Judicial system

The judicial branch in the country includes the Supreme Court, court of review and trial courts.

Supreme Court of the nation is comprised of nine Supreme Court magistrates who are appointed by the President. These magistrates appoint appellate judges. Three Supreme Court magistrates take a permanent position in the four chambers of the Supreme Court. The four chambers of the Supreme Court are:

• First Chamber - Civil matters
• Second Chamber – Criminal matters
• Third Chamber – Administrative litigations
• Fourth Chamber – General business

(Source: oas.org)

Switzerland is a multilingual and multiethnic country. The geographic location has its influence on the country’s languages and culture, with German, French, Italian and Romansch as the languages spoken in the country. The foreign population accounts for 22% of the total resident population. The country has no state religion but is majorly Roman Catholicism and Protestantism are followed by the people.

Total population

Switzerland recorded a population of 7.7858 million in 2009, increasing 1.1% over 2008.

(Source: Swiss Statistics)

In 2009, the gender representation in Switzerland was almost equal with males and females accounting for 49.2% and 50.8% of the population respectively.

(Source: Swiss Statistics)

Population by age

In 2009, the population of those between 40 and 64 years accounted for the highest share, followed by 20 to 39 year olds.

 

(Source: Swiss Statistics)

Life expectancy for men is 79.8 years and for women it is 84.4 years. Life expectancy has increased over previous years primarily due to easily available medical support across the country.

(Source: Swiss Statistics)

 

(Source: Swiss Statistics)

Birth rate and death rate

In 2009, the crude birth rate (per 1,000 people) was registered as 10, and the death rate (per 1,000 people) was registered as 8.

(Source: unicef.org)

Switzerland is ranked 13^th on the Human Development Index (HDI) 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income). 

(Source: UNDP)

In 2009, 59,236 people emigrated from Switzerland, increasing 1.66%, compared to 2008. 138, 269 people immigrated to the country in 2009, decreasing of 14.45% over 2008.

The net migration decreased by almost 24% as compared to the previous year.

(Source: Swiss Statistics)

Consumer price index (CPI)

CPI is the main indicator of inflation in the country. The CPI Index rose to 99.7 points in 2010, over 99.0 points in 2009.

(Source: Swiss statistics)

Interest rates

(Source: Swiss National Bank)

Money supply (currency in circulation)

M1 includes all physical currency, deposits in checking accounts and negotiable orders withdrawal accounts. It does not include certificates of deposit, savings accounts or money market accounts.

M2 refers to time deposits, exchange bills, mortgage bonds, and real estate bonds. 

M3 refers to M1 plus M2 plus foreign currency time deposits, commercial paper, and shares of mutual funds or market funds held by residents.

 (Source: Swiss National Bank)

Official exchange rate

(Source: Swiss National Bank)

Government financial well-being

Total revenue

Total revenue estimated for 2010 amounted to CHF 187,043 million, decreasing 5.46% over 2009. In 2010, the estimated government expenditure amounted to CHF 194,232 million, increasing 2.81% over 2009.

(Source: Swiss National Bank)

Public sector borrowing requirement / fiscal balance

In 2010, the government reported an estimated deficit of CHF 7,189 million, while in 2009, the government reported an estimated surplus of CHF 8,928 million.

(Source: Swiss National Bank)

Balance of payments

(Source: Swiss National Bank)

Mass public transit

Public transport in the country is primarily through buses. In February 2011, construction started on the first metro line in the country and in Central America. The metro is expected to be ready for public transport by 2011.

Ports: Major ports in Panama are:

(Source: worldportsource.com)

Airports:

There are about 25 airports in the country. Few of the major airports are:

(Source: aircraft-charter-world.com)

Telecommunications networks

In 2009, number of fixed telephone lines in the country was 537,100 which increased by 4.8% since 2004. Number of fixed line telephone in 2004 was 424,800.

(Source: itu.int)

The number of mobile phone subscribers in 2009 was 5.67 million. The total mobile phone subscribers increased by 35% between 2004 and 2009. In 2004, the mobile phone users were registered at 1.26 million.

(Source: itu.int)

As of June 2010, 959,900 people or 28.1% of the total population used internet services. In 2008 and 2009, the percentage of people using internet was only 8% of the population.

(Source:internetworldstats.com)