|
Panama ECONOMY
Gross Domestic Product (GDP): US$4.9 billion in 1985,
more than US$2,000 per capita. Growth of GDP estimated at 2.8
percent for 1986, demonstrating some economic recovery following
very low or negative growth as a result of recession after 1982.
Agriculture: About 9 percent of GDP in 1985. Crops
represented just over 63 percent of value added in agriculture.
Main crops--bananas, sugarcane, rice, corn, coffee, beans, tobacco,
melons, and flowers. Livestock (producing primarily red meat)
accounted for nearly 30 percent of value added in agriculture;
fishing (primarily shrimp), just over 4 percent; and forestry,
nearly 3 percent. Largely self-sufficient in foods except wheat.
Industry: Nearly 18 percent of GDP in 1985, including
primarily manufacturing and mining (over 9 percent of GDP),
construction (nearly 5 percent of GDP), and energy (over 3 percent
of GDP). Manufacturing consisted mainly of import substitution,
consumer goods. A few larger plants, including oil refining,
electric power, cement, and sugar. Manufacturing concentrated near
major cities.
Services: Over 73 percent of GDP in 1985. Sector included
transportation, banking and other financial services, government
services, wholesale and retail trade, and other services.
Currency: Balboa equal to United States dollar. Balboas
available only in coins. Dollars circulated as the only paper
currency.
Imports: US$1.34 Billion in 1985, including primarily
manufactured goods, crude oil, machinery and transportation
equipment, chemicals, and food products.
Exports: US$414.5 million in 1985, mainly refined
petroleum, bananas, sugar, manufactured goods, shrimp, and
clothing.
Balance of Payments: Traditionally, no short-run
constraints because of monetary system. Large exports of services,
including those to former Canal Zone, nearly compensated for
deficits in merchandise trade balance. Substantial inflow of
capital. Beginning in June 1987, however, extensive capital flight,
bank closures, and cutoffs of United States aid as a result of the
volatile political situation posed serious short- and long-term
financial problems for Panama.
Fiscal Year: Calendar year.
Fiscal Policy: Public-sector expenditures considerably
above revenues, resulting in large external public debt--one of the
world's largest on a per capita basis. Austerity and structural
adjustment programs imposed in 1983-84 successful in reducing
deficit, but debt service remained a major burden in the late
1980s.
Data as of December 1987
|
