Country Profile Panama

 


  • Capital: Panama city
  • Population: 3,360,474 (July 2009 est.)
  • Currency:  Balboa (PAB) at part with the US dollar (USD). US dollar is the currency used.                             
  • Language:  Spanish but business community is generally bilingual
  • Time zone:  GMT/UTC minus 5 hours (Eastern Standard Time. Panama is one hour ahead of the rest of Central America
  • Government: Constitutional Democracy
  • Chief of State: President Ricardo Martinelli

  • GDP real growth rate 2008:

    • 8.3% (2008)
    • 11.2% (2007 est.) 
    • 8.7% (2006 est.)
  • Exports(2008 est): $10.37 billion f.o.b.; note - includes the Colon Free Zone    

  • Main Export Partners(2007):

    • US 35.6%
    • Netherlands 10.2%
    • China 6%
    • Sweden 5.5%
    • UK 5.4%
    • Costa Rica 5.1%
    • Spain 5%
  •  Imports(2008 est.): $15.18 billion f.o.b. note: includes the Colon Free Zone

  •  Main Import partners(2007):

    • US 32.8%
    • Netherlands Antilles 7.6%
    • China 5.6%
    • Japan 5.1%
    • Costa Rica 5.1%
    • South Korea 4.1%
  • Country dialing code: +507
  • Emergency number:  911
  • National Airline: Copa Airlines (partner with Sky Team alliances)
  • Voltage: 110V

 

Detailed country profile


ECONOMY

GDP real growth rate:

  • 8.3% (2008) 
  • 11.2% (2007 est.) 
  • 8.7% (2006 est.)

GDP-Composition by sectors(2008)

  • Agriculture: 6.2%
  • Industry: 16.1%
  • Services: 77.6%

Labor force by occupation(2006):

  • Agriculture: 15%
  • Industry: 18%
  • Services: 67%

Agriculture products:

  • Bananas
  • Rice
  • Corn
  • Coffee
  • Sugarcane
  • Vegetables
  • Livestock
  • Shrimp

Industries:

  • Construction
  • Brewing
  • Cement and other construction materials
  • Sugar milling

Export: $10.37 billion f.o.b.; note - includes the Colon Free Zone (2008 est.)

Export Commodities:

  • Bananas
  • Shrimp
  • Sugar
  • Coffee
  • Clothing

Main Export Partners:

  • US 35.6%
  • Netherlands 10.2%
  • China 6%
  • Sweden 5.5%
  • UK 5.4%
  • Costa Rica 5.1%
  • Spain 5%

Imports:$15.18 billion f.o.b.
note: includes the Colon Free Zone (2008 est.)

Import commodities:

  • Capital goods
  • Foods
  • Consumer goods
  • Chemicals

Import partners:

  • US 32.8%
  • Netherlands Antilles 7.6%
  • China 5.6%
  • Japan 5.1%
  • Costa Rica 5.1%
  • South Korea 4.1%

Ports and Terminal:

  • Balboa
  • Manzanillo (part  of Colon)
  • Cristobal
  • Coco Solo
  • Vacamonte

Unemployment rate:6.3% (2008 est.)

GOVERNMENT

Government Type:Constitutional Democracy

Executive Branch:

Chief of state: President Ricardo Martinelli (since July 1st 2009)
Vice President: Juan Carlos Varela (since July1st 2009)
*note - the president is both the chief of state and head of government
Cabinet: Cabinet appointed by the president
Elections: president and vice presidents elected on the same ticket by popular vote for five-year terms (not eligible for immediate reelection; president and vice presidents must sit out two additional terms (10 years) before becoming eligible for reelection)

Legal system:

Based on civil law system; judicial review of legislative acts in the Supreme Court of Justice; accepts compulsory ICJ jurisdiction with reservations

Supreme Court of Justice or Corte Suprema de Justicia (nine judges appointed for 10-year terms); five superior courts; three courts of appeal

GEOGRAPHY

Land Boundaries:Total: 555 km

Border countries:

Climate:

  • Tropical maritime
  • Hot, humid, cloudy; prolonged rainy season (May to January)
  • Short dry season (January to May)

Terrain:Interior mostly steep, rugged mountains and dissected, upland plains; coastal areas largely plains and rolling hills

Elevation Extremes:

  • Lowest point: Pacific Ocean 0 m
  • Highest point: Volcan Baru 3,475 m

Natural resources:

  • Copper
  • Mahogany forests
  • Shrimp
  • Hydropower

Environment and international agreement:

  • Biodiversity
  • Climate Change
  • Climate Change-Kyoto Protocol
  • Desertification
  • Endangered Species
  • Hazardous Wastes
  • Law of the Sea
  • Marine Dumping
  • Ozone Layer Protection
  • Ship Pollution
  • Tropical Timber 83
  • Tropical Timber 94
  • Wetlands
  • Whaling

           Signed, but not ratified: Marine Life Conservation

Environment and current issues:

  • Water pollution from agricultural runoff threatens fishery resources
  • Deforestation of tropical rain forest
  • Land degradation and soil erosion threatens siltation of Panama Canal
  • Air pollution in urban areas
  • Mining threatens natural resources

PEOPLE

Ethnic groups:

  • Mestizo (mixed Amerindian and white) 70%
  • Amerindian and mixed (West Indian) 14%
  • White 10%
  • Amerindian 6%

Languages:

  • Spanish (official)
  • English 14%

       note - many Panamanians in the business community are  bilingual

Religion:

  • Roman Catholic 85%
  • Protestant 10%
  • Other 5%

HISTORY

Express History

Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Ecuador, and Venezuela - named the Republic of Gran Colombia. When dissolved in 1830, Panama remained part of Colombia.

With US backing, Panama separated from Colombia in 1903 and promptly signed a treaty with the US allowing for the construction of a canal and US sovereignty over a strip of land on either side of the structure (the Panama Canal Zone). The Panama Canal was built by the US Army Corps of Engineers between 1904 and 1914.

In 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of the century. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the subsequent decades.

With US help, Dictator Manuel NORIEGA was deposed in 1989.

The entire Panama Canal, the area supporting the Canal, and remaining US military bases were transferred to Panama by the end of 1999.

In October 2006, Panamanians approved an ambitious plan to expand the Canal. The project, which began in 2007 and could double the Canal's capacity, is expected to be completed in 2014-15 at a cost of 5.5 billion USD

Source: The world factbook www.cia.gov

More resources about Panama is available on MercaTrade.com

>>Search for business opportunities in Panama, click here B2B Marketplace

>>Learn about etiquette in Panama, click here Etiquette Panama 

>>Get the list of embassies and consulates in Panama, click here Embassy Panama

>>Find the latest Trade Agreements with Panama, click here Trade Agreement Panama

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