In the News
April 13, 2012
Tax-News.com
Future Bright For Panama: IMF
By: Mike Godfrey
The International Monetary Fund has published its Article IV report in respect of Panama, noting that the country has exited the global downturn robustly, with a well-capitalised banking system, but efforts should continue to build upon the tax revenue base to reverse poor revenue performance witnessed last year. 
April 26, 2012
The Wall Street Journal
Preservation Meets Paradise
By: Edward Helmore
When celebrated garden designer Edwina von Gal journeyed to the dry forests of Panama, she found an idyllic spot for an off-the-grid home—and an outlet for her lifelong passion for sustaining landscapes.
Panama Snapshot
ECONOMY
GDP (current):
$24.1 billion (2009)
$26.8 billion (2010)
GDP (annual growth rate):
10.5% (projection for 2011)
Both the IMF and the UN estimate that Panama will have the fastest GDP growth rate in 2011 and 2012, in the Latin America and Caribbean region.
Source: Contraloría General de la República, IMF, ECLAC.org reports
Unemployment (open):
6.5% (Aug, 2010)
5.6% (Mar, 2011)
4.5% (Aug, 2011)
Inflation:
5% (2011 est.)
Public sector debt stock:
$11 billion or 41.1% of GDP (2010 est.)
$12.8 billion or 42.6% of GDP (Nov, 2011)
Source: (Contraloría General de la República)
External debt stock:
$10.1 billion or 37.7% of GDP (2010 est.)
$10.7 billion or 35% of GDP (Nov, 2011)
Imports (goods):
$17.2 billion (YT Sep, 2011)
Source: (Contraloría General de la República)
Imports (services):
$2.5 billion (YT Sep, 2011)
Source: (Contraloría General de la República)
Exports (goods):
$12.5 billion (YT Sep, 2011)
Exports (services):
$5.3 billion (YT Sep, 2011)
Foreign Direct Investment:
$1.8 billion (2009)
$2.36 billion (2010)
$2.1 billion (YT Sep, 2011)
INDUSTRY
Competitiveness rank (World Economic Forum):
#58 out of 134 countries (2008)
#59 out of 134 countries (2009)
#53 out of 134 countries (2010)
#49 out of 142 countries (2011)
Panama is the 2nd most competitive country in Latin America.
Panama Canal:
$1.5 billion in income from operations or a growth rate of 7.9% (2009)
$1.51 billion in income from tolls (year 2010) or a growth rate of 3.1% vs. 2009
Source: (Contraloría General de la República)
Tourism:
3.5 million passengers (2009) for an annual growth rate of 10.5%. Spending by visitors grew 5.3% for a total of $1.5 billion (2009).
3.9 million passengers (2010) for an annual growth rate of 11.3% vs. 2009. Spending by visitors grew 13% vs. 2009 for a total of $1.7 billion (2010).
Source: (Contraloría General de la República)
RAISING PANAMA’S INVESTMENT GRADE
Fitch’s rating:
Upgraded from BB+ / positive perspective to BBB-/ positive perspective
Moody’s rating:
Upgraded from Ba1 to Baa3 / stable outlook
S&P rating:
Upgraded from BB+ to BBB- / outlook stable
PANAMA TRADE AGREEMENTS
Operating Free Trade Agreements (8):
Chile, Singapore, China (Taiwan), Central America (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua).
Agreements under implementation (1):
European Union (all countries are adjusting their local norms)
Agreements requiring partner’s formal sanction (2):
Canada and United States.
Limited Commercial Agreements (3):
Colombia, México and the Dominican Republic
Agreements under negotiation (1):
Peru
Agreements on hold (1):
Colombia (Free Trade Agreement)
SOCIAL
Human Development Index rank:
#60 of 182 countries (2009) -- High Human Development. (Source: UN)
#54 of 169 countries (2010) – High Human Development. (Source: UN)
Population
3.5 Million (1.8 MM men, 1.7 MM women; 1.8 MM in Province of Panama)
Source: (Contraloría General de la República)
Annual growth rate: 1.6%
Literacy rate:
95% (General Lifestyle Survey, 2008. Contraloría General de la República)
Public spending on education and culture:
4.6% of GDP (Contraloría General de la República, 2009)
Life expectancy:
76 years; 4th highest in Latin America (World Health Organization, year 2008)
Political Rights:
1 (1= most free; 7= least free) (Freedom House)
