Economy of Panama


Panama is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Panama may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Panama exports around $18.87 billion and imports roughly $26.61 billion. 5.6% of population in the country are unemployed. The total number of unemployed people in Panama is 233,107. In Panama, 23% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Panama is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 3.8% of GDP. The Gini Index of the country is 51.9. Panama is experiencing inequality. The gap between the richest and poorest citizens in this country is significant and obvious, resulting in a drastically different standard of living for rich and poor citizens. Panama has a Human Development Index (HDI) of 0.765. Panama has a high HDI score. This indicates that the majority of citizens will be able to attain a desirable life while providing substantial aid and assistance to citizens with lower living standards. The Global Peace Index (GPI) for Panama is 1.903. Due to strong law enforcement presence and high social responsibility, Panama is very safe by international standards. The strength of legal rights index for Panama is 7. Overall, it is considered to be rather adequate - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders at least decently; credit information is msotly sufficient and generally available.

Currency

The currency of Panama is Panamanian balboa. The plural form of the word Panamanian balboa is balboas. The symbol used for this currency is B/., and it is abbreviated as PAB. The Panamanian balboa is divided into Centesimo; there are 100 in one balboa.

Credit rating

The depth of credit information index for Panama is 8, which means that information is mostly sufficient and quite detailed; accessibility is not a problem. According to the S&P credit-rating agency, Panama has a credit rating score of BBB, and the prospects of this rating are stable. According to the Fitch credit-rating agency, Panama has a credit rating score of BBB, and the prospects of this rating are stable. According to the Moody’s credit-rating agency, Panama has a credit rating score of Baa2, and the prospects of this rating are stable.

Central bank

In Panama, the institution that manages the state’s currency, money supply, and interest rates is called National Bank of Panama. Locally, the central bank of Panama is called Banco Nacional de Panamá. The average deposit interest rate offered by local banks in Panama is 2.2%.

Public debt

Panama has a government debt of 97.02% of the country’s Gross Domestic Product (GDP), as assessed in 2012.

Tax information

The corporate tax in Panama is set at 25%. Personal income tax ranges from 0% to 27%, depending on your specific situation and income level. VAT in Panama is 7%.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Panama is $76770 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Panama was last recorded at $18 million. PPP in Panama is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Panama is 40,467 billion. Based on this statistic, Panama is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Panama was last recorded at $10 million. The average citizen in Panama has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries.