Panama GDP per Capita

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Panama GDP per Capita

Panama GDP per Capita: Understanding the Economic Progress

The Gross Domestic Product (GDP) is one of the essential indicators used to measure the economic performance of a country.

Panama, a Central American country, has experienced significant economic growth in recent years, with its Panama GDP per Capita showing steady growth.

We will discuss the factors contributing to the increase in Panama’s GDP per capita, its current status, and future prospects.

Introduction to Panama’s Economy

Panama is a country located in Central America, bordered by Costa Rica to the west and Colombia to the southeast.

The country’s economy is primarily driven by the Panama Canal, which connects the Pacific and Atlantic Oceans and is a crucial trade route for many countries.

In addition to the Canal, Panama’s economy also relies heavily on the services sector, such as banking, tourism, and logistics.

Understanding Panama GDP per Capita

GDP per capita is an economic indicator that measures a country’s economic output per person. It is calculated by dividing the country’s GDP by its population.

GDP per capita provides a useful measure of a country’s standard of living and economic prosperity.

Panama GDP per Capita Growth

Panama’s GDP per capita has been growing steadily in recent years. According to the World Bank, Panama’s GDP per capita increased from $9,862 in 2010 to $15,423 in 2020, a growth rate of 56.3%. This growth can be attributed to several factors, including:

1. The Panama Canal Expansion

In 2016, the Panama Canal underwent a massive expansion, which allowed it to accommodate larger ships and increased its capacity.

This expansion led to an increase in trade through the Canal, which had a positive impact on Panama’s economy.

2. Growth in the Services Sector

Panama’s services sector, which includes banking, tourism, and logistics, has been growing rapidly in recent years.

This growth has been driven by the country’s favorable business climate and strategic location.

3. Foreign Direct Investment

Panama has been successful in attracting foreign direct investment (FDI) in recent years.

The government has implemented several policies to encourage investment in the country, such as tax incentives and streamlined bureaucratic processes.

4. Infrastructure Development

Panama has made significant investments in infrastructure development in recent years.

The government has focused on building new roads, bridges, and airports to improve connectivity within the country and attract foreign investment.

Challenges Facing Panama’s Economy

Despite the significant progress made in recent years, Panama’s economy still faces several challenges. These challenges include:

1. Income Inequality

Panama has one of the highest levels of income inequality in Latin America. The country’s economic growth has not been evenly distributed, and many people still live in poverty.

2. Dependence on the Panama Canal

While the Panama Canal is a significant source of revenue for the country, Panama’s economy is heavily reliant on it. Any disruption in Canal operations could have a significant impact on the country’s economy.

3. Informal Economy

Panama’s informal economy, which includes unregulated businesses and self-employment, accounts for a significant portion of the country’s economic activity.

This sector is difficult to regulate and tax, making it challenging for the government to collect revenue.

Future Prospects for Panama’s Economy

Despite the challenges facing Panama’s economy, the country has several opportunities for future growth. These opportunities include:

1. Diversification of the Economy

Panama’s economy has historically been heavily reliant on the Canal and services sector.

However, the government is now focusing on diversifying the economy, with a particular emphasis on the manufacturing sector.

2. Investment in Education and Skills Development

Investing in education and skills development can help to address income inequality and increase productivity in the country.

The government has already taken steps to improve education, including increasing funding for schools and implementing programs to train workers in high-demand industries.

3. Expansion of Tourism

Tourism is a significant source of revenue for Panama’s economy, and the government is focusing on expanding this sector.

The country has already seen significant growth in tourism in recent years, and there is potential for further expansion, particularly in eco-tourism and cultural tourism.

 GDP of Panama GDP growth rate (2017)

$62,283,756,584

5.32%
  • Nominal (current) Gross Domestic Product (Panama GDP per Capita is $62,283,756,584 (USD) as of 2017.
  • Real GDP (constant, inflation adjusted) of Panama reached $47,232,508,571 in 2017.
  • GDP Growth Rate in 2017 was 5.32%, representing a change of 2,386,354,184 US$ over 2016, when Real GDP was $44,846,154,387.
  • GDP per Capita in Panama (with a population of 4,106,769 people) was $11,501 in 2017, an increase of $393 from $11,109 in 2016; this represents a change of 3.5% in GDP per capita.
Panama GDP per Capita
Panama GDP per Capita

Gross Domestic Product (GDP) of Panama

Year GDP Nominal
(Current USD)		 GDP Real
(Inflation adj.)		 GDP
change		 GDP per capita Pop.
change		 Population
2017 $62,283,756,584 $47,232,508,571 5.32% $11,501 1.73 % 4,106,769
2016 $57,957,594,212 $44,846,154,387 4.97% $11,109 1.73 % 4,037,078
2015 $54,091,713,776 $42,724,269,829 5.73% $10,766 1.72 % 3,968,487
2014 $49,921,464,365 $40,407,814,957 5.07% $10,357 1.72 % 3,901,314
2013 $45,599,994,000 $38,459,234,341 6.90% $10,027 1.72 % 3,835,435
2012 $40,429,734,400 $35,975,676,272 9.78% $9,541 1.73 % 3,770,626
2011 $34,686,224,300 $32,771,051,606 11.31% $8,842 1.75 % 3,706,483
2010 $29,440,287,600 $29,440,287,600 5.83% $8,082 1.77 % 3,642,687
2009 $27,116,635,600 $27,818,998,195 1.24% $7,772 1.79 % 3,579,215
2008 $25,155,888,600 $27,477,455,534 9.86% $7,815 1.81 % 3,516,204
2007 $21,295,984,200 $25,012,326,922 11.98% $7,242 1.83 % 3,453,675
2006 $18,141,666,300 $22,335,628,468 8.65% $6,585 1.85 % 3,391,666
2005 $16,374,393,900 $20,556,945,802 7.19% $6,173 1.86 % 3,330,217
2004 $15,013,381,700 $19,177,815,506 7.52% $5,866 1.88 % 3,269,356
2003 $13,693,981,200 $17,836,164,969 4.21% $5,558 1.90 % 3,209,048
2002 $12,994,310,400 $17,116,338,066 2.23% $5,435 1.93 % 3,149,188
2001 $12,502,013,400 $16,743,109,146 0.57% $5,419 1.96 % 3,089,648
2000 $12,304,115,000 $16,647,507,043 2.72% $5,494 1.99 % 3,030,328
1999 $12,130,252,200 $16,207,415,082 3.92% $5,455 2.02 % 2,971,196
1998 $11,575,486,400 $15,596,469,165 7.34% $5,355 2.05 % 2,912,316
1997 $10,677,286,100 $14,529,766,272 6.46% $5,091 2.06 % 2,853,913
1996 $9,870,494,000 $13,647,972,099 4.08% $4,881 2.07 % 2,796,291
1995 $9,573,813,700 $13,113,000,594 1.75% $4,786 2.07 % 2,739,668
1994 $9,365,289,800 $12,887,257,246 2.85% $4,801 2.07 % 2,684,116

5 FAQs About Panama GDP per Capita

  1. What is the current GDP per capita of Panama? The current GDP per capita of Panama is $15,423, according to the World Bank.
  2. What is the primary driver of Panama’s economy? The primary driver of Panama’s economy is the Panama Canal, which is a crucial trade route for many countries.
  3. What are the challenges facing Panama’s economy? Challenges facing Panama’s economy include income inequality, dependence on the Panama Canal, and the informal economy.
  4. What are the opportunities for future growth in Panama? Opportunities for future growth in Panama include diversification of the economy, regional integration, investment in education and skills development, and expansion of tourism.
  5. How has foreign direct investment impacted Panama’s economy? Foreign direct investment has had a positive impact on Panama’s economy, with the government implementing policies to attract investment in the country.

Sources: Panama GDP per Capita

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