Panama: Recent Economic Developments

This paper provides background information to the IMF staff report for the 1998 Article IV Consultation discussions with Panama. It focuses on areas of interest in Panama’s medium-term economic strategy, and gives a broad overview of economic developments with emphasis on 1997. It updates information on important areas of economic activity: the structure and reform of the financial sector; reversion of the Canal Zone areas to Panama; and analysis of key elements of the economic reform program since 1994, including trade reform and other measures to foster competitiveness and competition.

Abstract

Panama: Basic Data

Sources: Panamanian authorities; and Fund staff estimates.

^{^1/}Excluding grants.

^{^2/}External debt service as percent of exports of goods and nonfactor services. The 1997 figure reflects debt restructuring involving the retirement of Brady bonds.

Panama: Basic Data

I. Social and Demographic Indicators
Area (thousand sq. km)		77,082	Nutrition (1994)
				Calorie intake
Population (1996)				(per capita a day)		2,534
	Total (million)	2.7
	Rate of increase (percent a year)	1.6	Health (1994)
	Density (per sq. km.)	35.9		Population per physician		808
	GDP per capita (US$) (1997)	3,229		Population per hospital bed (1992)		335
	Unemployment (August 1998)	13.4
Population characteristics (1995)			Access to safe water (percent
	Life expectancy at birth (years)	73		of population, 1995)
	Crude birth rate (per thousand)	22.8		Total		82
	Crude death rate (per thousand)	4.9			Urban	84
	Infant mortality (per thousand live births)	22.6			Rural	68
Income distribution (1995)			Education (in percent, 1995)
	By highest 20 percent of households	60		Secondary education
	By lowest 20 percent of households	2		enrollment rate		68

II Economic Indicators, 1993-97
			1993	1994	1995	1996	1997
(In annual percent changes)
National accounts and prices
GDP at constant 1982 market prices			5.5	2.9	1.8	2.4	4.4
	Agriculture and mining		0.3	2.8	3.1	0.6	-0.9
	Manufacturing and construction		14.5	3.7	1.3	-0.7	4.0
	Services		3.7	4.5	1.6	3.6	4.8
Consumer price index (end of period)			1.0	1.3	0.8	2.3	-0.5
(In percent of GDP)
Gross investment			24.1	24.5	26.2	23.6	25.4
Private consumption			53.9	53.7	54.6	56.2	55.3
Public consumption			21.3	19.7	20.2	20.0	20.4
Gross national saving			22.0	24.1	22.8	22.0	22.4
(In millions of balboas)
Public sector finances
Revenue ^1/			2,056	2,202	2,301	2,271	2,414
Noninterest expenditure			1,833	1,792	1,868	1,964	2,178
Primary balance (deficit -)			223	411	441	312	308
Overall balance (deficit -)			-101	25	14	34	-28
Memorandum items:
Primary balance (percent of GDP)			3.1	5.3	5.6	3.8	3.5
Overall balance (percent of GDP)			-1.4	0.3	0.2	0.4	-0.3
	Money		704	800	816	833	992
	Quasi-money		3,732	4,298	4,700	5,016	5,725
	Net domestic assets		3,802	4,259	4,797	5,142	5,913
		Credit to the public sector	-523	-801	-1,031	-851	-1,011
		Credit to the private sector	4,981	5,756	6,521	7,002	7,948
(In millions of U.S. dollars)
Balance of payments
	Trade balance		-377.9	-248.6	-569.2	-510.6	-593.4
		Exports, f.o.b.	614.7	672.4	742.9	761.4	804.5
		Imports, f.o.b.	-1,552.10	-1,852.7	-1,979.9	-2,076.2	-2,349.3
		Colon Free zone	559.5	931.7	667.7	804.2	951.4
	Services and transfers (net)		94.9	218.3	299.9	378.3	329.2
		Of which: Interest on public debt	-338.6	-354.0	-393.2	-243.3	-286.2
	Current account		-282.9	-30.3	-269.3	-132.3	-264.3
	Capital account		458.5	-67.9	16.1	532.1	406.9
		Public	196.1	-230.8	-68.7	-168.4	-336.2
		Private	262.4	162.9	84.7	700.5	743.1
	Overall balance		175.6	-98.2	-253.2	399.8	142.6
Net foreign assets of BNP			377.6	631.6	708.7	952.1	1,082.3
External payments arrears			3,236.0	3,526.2	3,938.1	97.3	43.5
Memorandum items:
Debt-service ratio ^2/			26.3	20.3	21.9	15.4	44.4
Current account (as percent of GDP)			-4.3	-0.4	-3.4	-1.6	-3.0
External debt outstanding (as percent of GDP)			78.0	71.2	75.2	61.8	57.9
IMF data (as of October 31,1998)
Article VIII status			As of 11/26/46
Intervention currency and rate			B 1.00 per U.S. dollar
Quota			SDR 149.6 million
Fund holdings of local currency			SDR265.75 million
	From Fund resources (including SBA and EFF)		128.0
Fund holdings as percent of quota			177.6
	Arrears with the Fund		None
Special Drawing Rights Department
	Cumulative SDR allocation					SDR 26.32 million
	Net acquisition or utilization (-) of SDRs		24.55 million
	Holdings of SDRs		1.77 million
Share of profits from gold sales			US$5.7 million

Sources: Panamanian authorities; and Fund staff estimates.

^{^1/}Excluding grants.

^{^2/}External debt service as percent of exports of goods and nonfactor services. The 1997 figure reflects debt restructuring involving the retirement of Brady bonds.

Panama: Basic Data

I. Social and Demographic Indicators
Area (thousand sq. km)		77,082	Nutrition (1994)
				Calorie intake
Population (1996)				(per capita a day)		2,534
	Total (million)	2.7
	Rate of increase (percent a year)	1.6	Health (1994)
	Density (per sq. km.)	35.9		Population per physician		808
	GDP per capita (US$) (1997)	3,229		Population per hospital bed (1992)		335
	Unemployment (August 1998)	13.4
Population characteristics (1995)			Access to safe water (percent
	Life expectancy at birth (years)	73		of population, 1995)
	Crude birth rate (per thousand)	22.8		Total		82
	Crude death rate (per thousand)	4.9			Urban	84
	Infant mortality (per thousand live births)	22.6			Rural	68
Income distribution (1995)			Education (in percent, 1995)
	By highest 20 percent of households	60		Secondary education
	By lowest 20 percent of households	2		enrollment rate		68

II Economic Indicators, 1993-97
			1993	1994	1995	1996	1997
(In annual percent changes)
National accounts and prices
GDP at constant 1982 market prices			5.5	2.9	1.8	2.4	4.4
	Agriculture and mining		0.3	2.8	3.1	0.6	-0.9
	Manufacturing and construction		14.5	3.7	1.3	-0.7	4.0
	Services		3.7	4.5	1.6	3.6	4.8
Consumer price index (end of period)			1.0	1.3	0.8	2.3	-0.5
(In percent of GDP)
Gross investment			24.1	24.5	26.2	23.6	25.4
Private consumption			53.9	53.7	54.6	56.2	55.3
Public consumption			21.3	19.7	20.2	20.0	20.4
Gross national saving			22.0	24.1	22.8	22.0	22.4
(In millions of balboas)
Public sector finances
Revenue ^1/			2,056	2,202	2,301	2,271	2,414
Noninterest expenditure			1,833	1,792	1,868	1,964	2,178
Primary balance (deficit -)			223	411	441	312	308
Overall balance (deficit -)			-101	25	14	34	-28
Memorandum items:
Primary balance (percent of GDP)			3.1	5.3	5.6	3.8	3.5
Overall balance (percent of GDP)			-1.4	0.3	0.2	0.4	-0.3
	Money		704	800	816	833	992
	Quasi-money		3,732	4,298	4,700	5,016	5,725
	Net domestic assets		3,802	4,259	4,797	5,142	5,913
		Credit to the public sector	-523	-801	-1,031	-851	-1,011
		Credit to the private sector	4,981	5,756	6,521	7,002	7,948
(In millions of U.S. dollars)
Balance of payments
	Trade balance		-377.9	-248.6	-569.2	-510.6	-593.4
		Exports, f.o.b.	614.7	672.4	742.9	761.4	804.5
		Imports, f.o.b.	-1,552.10	-1,852.7	-1,979.9	-2,076.2	-2,349.3
		Colon Free zone	559.5	931.7	667.7	804.2	951.4
	Services and transfers (net)		94.9	218.3	299.9	378.3	329.2
		Of which: Interest on public debt	-338.6	-354.0	-393.2	-243.3	-286.2
	Current account		-282.9	-30.3	-269.3	-132.3	-264.3
	Capital account		458.5	-67.9	16.1	532.1	406.9
		Public	196.1	-230.8	-68.7	-168.4	-336.2
		Private	262.4	162.9	84.7	700.5	743.1
	Overall balance		175.6	-98.2	-253.2	399.8	142.6
Net foreign assets of BNP			377.6	631.6	708.7	952.1	1,082.3
External payments arrears			3,236.0	3,526.2	3,938.1	97.3	43.5
Memorandum items:
Debt-service ratio ^2/			26.3	20.3	21.9	15.4	44.4
Current account (as percent of GDP)			-4.3	-0.4	-3.4	-1.6	-3.0
External debt outstanding (as percent of GDP)			78.0	71.2	75.2	61.8	57.9
IMF data (as of October 31,1998)
Article VIII status			As of 11/26/46
Intervention currency and rate			B 1.00 per U.S. dollar
Quota			SDR 149.6 million
Fund holdings of local currency			SDR265.75 million
	From Fund resources (including SBA and EFF)		128.0
Fund holdings as percent of quota			177.6
	Arrears with the Fund		None
Special Drawing Rights Department
	Cumulative SDR allocation					SDR 26.32 million
	Net acquisition or utilization (-) of SDRs		24.55 million
	Holdings of SDRs		1.77 million
Share of profits from gold sales			US$5.7 million

Sources: Panamanian authorities; and Fund staff estimates.

^{^1/}Excluding grants.

^{^2/}External debt service as percent of exports of goods and nonfactor services. The 1997 figure reflects debt restructuring involving the retirement of Brady bonds.

Introduction

This report provides background information to the staff report for the 1998 Article IV consultation discussions with Panama. It presents an overview of recent developments and chapters focusing on areas of interest in Panama’s medium-term economic strategy. The first chapter gives a broad overview of economic developments with emphasis on 1997. Subsequent chapters update information on important areas of economic activity: the structure and reform of the financial sector (Chapter II); reversion of the Canal Zone areas to Panama (Chapter III); and analysis of key elements of the economic reform program since 1994, including trade reform and other measures to foster competitiveness and competition (Chapter IV).

I. Macroeconomic Trends

1. Following the political and economic crisis of 1988-89, when real GDP fell by a cumulative 18 percent, the economy experienced a broad-based recovery with high rates of real GDP growth. The recovery was facilitated by the lifting of economic sanctions and large aid flows by the United States, and was supported by an economic program that succeeded in restoring financial stability and began to address structural distortions. However, progress with respect to deregulation, privatization, and public sector reform was limited.

A. Developments During 1990-92

2. Reform policies initiated during 1990-92 were supported by loans from the IBRD and IDB, grants from U.S. AID, and by a 1992 Stand-by Arrangement with the Fund. Economic growth rebounded, inflation remained low and unemployment, which was almost 19 percent in 1989, fell to 14.7 percent in 1992. While the condition of the public finances improved, at least one structural reform was reversed and progress in other structural areas was slow. The overall public sector deficit was reduced from an annual average of 10 percent of GDP during 1988-89 to 1.3 percent of GDP in 1991 and turned into a small surplus in 1992. The strengthening of the fiscal position resulted particularly from enhanced tax administration and an improvement in the finances of the Social Security Agency (CSS). However, a structural rigidity was reinstated in 1991 when the Supreme Court reactivated special labor laws that had been suspended since 1988, granting again automatic wage increases to more than 50 percent of civil servants. The public sector accumulated sizable external arrears during 1988-91, but in 1992 arrears with multilateral institutions were settled and agreement was reached to reschedule a substantial part of the debt owed to Paris Club creditors. During 1990-92 some liberalization of the trade regime was achieved through the conversion of quantitative trade barriers to ad valorem tariffs.

B. Developments During 1993-96

3. In the period preceding the 1994 elections, the economy slowed as economic reforms lost momentum, and the overall public sector balance returned to a small deficit. The government that assumed office in 1994 began to implement a medium-term program of economic reforms to promote economic growth and to reduce unemployment while maintaining low inflation in the context of a reasonable fiscal balance. The reform agenda included public debt restructuring, trade liberalization, privatization, and other measures to foster private sector participation and competition. The program was supported by a Stand-by Arrangement with the Fund beginning in November 1995.

4. Real GDP weakened substantially to an annual average of about 2½ percent during 1994-96 with negative growth in mining, construction and Colon Free Zone (ZLC) activities (Table 1). Dampened conditions were due in part to the crisis in Mexico, virtually halting major residential construction in Panama City and reducing trading activity through the ZLC. During this period unemployment remained near 14 percent (Table 9). The persistence of high unemployment was associated with rigidities in the labor market and the low labor absorption of some of the more dynamic sectors in the economy (SM/96/164, Rev. 1). Inflation remained low, averaging around 1½ percent a year during 1994-96 (Table 11). Panama does not have an exchange rate policy since the U.S. dollar serves as legal tender and the balboa is used as a unit of account and to issue coins. The absence of domestic currency issue has contributed to the maintenance of price stability.

Table 1.

Panama: National Accounts by Productive Activity ^1/

Sources: Office of the Comptroller General; and Fund staff estimates.

^{^1/}The national accounts for 1980-94 were revised and published in December 1995. The base year for the constant price data was updated to 1982 from 1970 and methodological improvements were implemented.

^{^2/}Includes the sales tax; “impuesto a la transferencia de bienes muebles.”

Table 1.

Panama: National Accounts by Productive Activity ^1/

			1993	1994	1995	1996	1997
		(In millions of balboas at 1982 prices)
Gross domestic product at market prices			5,922.5	6,091.3	6,198.0	6,348.2	6,628.7
Primary activity			488.7	502.4	517.8	521.0	516.3
	Agriculture		480.4	493.3	509.2	512.9	506.8
	Mining		8.3	9.1	8.6	8.1	9.5
Secondary activity			832.7	863.2	874.6	868.4	903.1
	Manufacturing		589.5	614.6	615.8	620.3	642.6
	Construction		243.2	248.6	258.8	248.1	260.5
Services			4,506.7	4,710.1	4,784.2	4,954.1	5,190.5
	Public utilities		240.0	255.0	259.9	311.0	321.7
	Commerce, restaurants, and hotels		1,229.5	1,289.8	1,280.4	1,271.7	1,379.9
		Colon Free Zone, wholesale	488.2	533.6	516.6	494.3	570.4
		Restaurants and hotels	85.4	90.3	95.0	100.7	106.1
		Other	655.9	665.9	668.8	676.7	703.4
	Transport and communications		666.3	695.8	761.3	781.8	817.1
		Panama Canal Commission	352.0	362.4	419.4	429.9	422.2
		Other transport and communications	314.3	333.4	341.9	351.9	394.9
	Financial intermediation		647.0	675.0	641.8	706.1	729.2
	Housing		786.5	821.1	841.4	867.7	889.5
	Public administration		612.1	632.0	653.5	665.3	690.6
	Other services		325.3	341.4	345.9	350.5	362.5
Plus import taxes ^2/			235.9	245.2	249.8	256.5	279.9
Less imputed banking services			141.5	229.6	228.4	251.8	261.1
			(Percent change)
Gross domestic product at market prices			5.5	2.9	1.8	2.4	4.4
Primary activity			0.3	2.8	3.1	0.6	-0.9
	Agriculture		0.0	2.7	3.2	0.7	-1.2
	Mining		16.9	9.6	-5.5	-5.8	17.3
Secondary activity			14.5	3.7	1.3	-0.7	4.0
	Manufacturing		6.3	4.3	0.2	0.7	3.6
	Construction		40.5	2.2	4.1	-4.1	5.0
Services			3.7	4.5	1.6	3.6	4.8
	Public utilities		18.1	6.3	1.9	19.7	3.4
	Commerce, restaurants, and hoteles		5.1	4.9	-0.7	-0.7	8.5
		Colon Free Zone, wholesale	4.5	9.3	-3.2	-4.3	15.4
		Restaurants and hotels	2.3	5.7	5.2	6.0	5.4
		Other	5.8	1.5	0.4	1.2	3.9
	Transport and communications		-3.2	4.4	9.4	2.7	4.5
		Panama Canal Commission	-5.2	3.0	15.7	2.5	-1.8
		Other transport and communications	-0.9	6.1	2.5	2.9	12.2
	Financial intermediation		10.8	4.3	-4.9	10.0	3.3
	Housing		2.3	4.4	2.5	3.1	2.5
	Public administration		0.7	3.3	3.4	1.8	3.8
	Other services		0.9	4.9	1.3	1.3	3.4
Plus import taxes ^2/			40.4	3.9	1.9	2.7	9.1
Less imputed banking services			26.3	62.3	-0.5	10.2	3.7
			(Percent distribution)
Gross domestic product at market prices			100.0	100.0	100.0	100.0	100.0
Primary activity			8.3	8.2	8.4	8.2	7.8
	Agriculture		8.1	8.1	8.2	8.1	7.6
	Mining		0.1	0.1	0.1	0.1	0.1
Secondary activity			14.1	14.2	14.1	13.7	13.6
	Manufacturing		10.0	10.1	9.9	9.8	9.7
	Construction		4.1	4.1	4.2	3.9	3.9
Services			76.1	77.3	77.2	78.0	78.3
	Public utilities		4.1	4.2	4.2	4.9	4.9
	Commerce, restaurants, and hotels		20.8	21.2	20.7	20.0	20.8
		Colon Free Zone, wholesale	8.2	8.8	8.3	7.8	8.6
		Restaurants and hotels	1.4	1.5	1.5	1.6	1.6
		Other	11.1	10.9	10.8	10.7	10.6
	Transport and communications		11.3	11.4	12.3	12.3	12.3
		Panama Canal Commission	5.9	5.9	6.8	6.8	6.4
		Other transport and communications	5.3	5.5	5.5	5.5	6.0
	Financial intermediation		10.9	11.1	10.4	11.1	11.0
	Housing		13.3	13.5	13.6	13.7	13.4
	Public administration		10.3	10.4	10.5	10.5	10.4
	Other services		5.5	5.6	5.6	5.5	5.5
Plus import taxes ^2/			4.0	4.0	4.0	4.0	4.2
Less imputed banking services			2.4	3.8	3.7	4.0	3.9

Sources: Office of the Comptroller General; and Fund staff estimates.

^{^2/}Includes the sales tax; “impuesto a la transferencia de bienes muebles.”

Table 1.

Panama: National Accounts by Productive Activity ^1/

			1993	1994	1995	1996	1997
		(In millions of balboas at 1982 prices)
Gross domestic product at market prices			5,922.5	6,091.3	6,198.0	6,348.2	6,628.7
Primary activity			488.7	502.4	517.8	521.0	516.3
	Agriculture		480.4	493.3	509.2	512.9	506.8
	Mining		8.3	9.1	8.6	8.1	9.5
Secondary activity			832.7	863.2	874.6	868.4	903.1
	Manufacturing		589.5	614.6	615.8	620.3	642.6
	Construction		243.2	248.6	258.8	248.1	260.5
Services			4,506.7	4,710.1	4,784.2	4,954.1	5,190.5
	Public utilities		240.0	255.0	259.9	311.0	321.7
	Commerce, restaurants, and hotels		1,229.5	1,289.8	1,280.4	1,271.7	1,379.9
		Colon Free Zone, wholesale	488.2	533.6	516.6	494.3	570.4
		Restaurants and hotels	85.4	90.3	95.0	100.7	106.1
		Other	655.9	665.9	668.8	676.7	703.4
	Transport and communications		666.3	695.8	761.3	781.8	817.1
		Panama Canal Commission	352.0	362.4	419.4	429.9	422.2
		Other transport and communications	314.3	333.4	341.9	351.9	394.9
	Financial intermediation		647.0	675.0	641.8	706.1	729.2
	Housing		786.5	821.1	841.4	867.7	889.5
	Public administration		612.1	632.0	653.5	665.3	690.6
	Other services		325.3	341.4	345.9	350.5	362.5
Plus import taxes ^2/			235.9	245.2	249.8	256.5	279.9
Less imputed banking services			141.5	229.6	228.4	251.8	261.1
			(Percent change)
Gross domestic product at market prices			5.5	2.9	1.8	2.4	4.4
Primary activity			0.3	2.8	3.1	0.6	-0.9
	Agriculture		0.0	2.7	3.2	0.7	-1.2
	Mining		16.9	9.6	-5.5	-5.8	17.3
Secondary activity			14.5	3.7	1.3	-0.7	4.0
	Manufacturing		6.3	4.3	0.2	0.7	3.6
	Construction		40.5	2.2	4.1	-4.1	5.0
Services			3.7	4.5	1.6	3.6	4.8
	Public utilities		18.1	6.3	1.9	19.7	3.4
	Commerce, restaurants, and hoteles		5.1	4.9	-0.7	-0.7	8.5
		Colon Free Zone, wholesale	4.5	9.3	-3.2	-4.3	15.4
		Restaurants and hotels	2.3	5.7	5.2	6.0	5.4
		Other	5.8	1.5	0.4	1.2	3.9
	Transport and communications		-3.2	4.4	9.4	2.7	4.5
		Panama Canal Commission	-5.2	3.0	15.7	2.5	-1.8
		Other transport and communications	-0.9	6.1	2.5	2.9	12.2
	Financial intermediation		10.8	4.3	-4.9	10.0	3.3
	Housing		2.3	4.4	2.5	3.1	2.5
	Public administration		0.7	3.3	3.4	1.8	3.8
	Other services		0.9	4.9	1.3	1.3	3.4
Plus import taxes ^2/			40.4	3.9	1.9	2.7	9.1
Less imputed banking services			26.3	62.3	-0.5	10.2	3.7
			(Percent distribution)
Gross domestic product at market prices			100.0	100.0	100.0	100.0	100.0
Primary activity			8.3	8.2	8.4	8.2	7.8
	Agriculture		8.1	8.1	8.2	8.1	7.6
	Mining		0.1	0.1	0.1	0.1	0.1
Secondary activity			14.1	14.2	14.1	13.7	13.6
	Manufacturing		10.0	10.1	9.9	9.8	9.7
	Construction		4.1	4.1	4.2	3.9	3.9
Services			76.1	77.3	77.2	78.0	78.3
	Public utilities		4.1	4.2	4.2	4.9	4.9
	Commerce, restaurants, and hotels		20.8	21.2	20.7	20.0	20.8
		Colon Free Zone, wholesale	8.2	8.8	8.3	7.8	8.6
		Restaurants and hotels	1.4	1.5	1.5	1.6	1.6
		Other	11.1	10.9	10.8	10.7	10.6
	Transport and communications		11.3	11.4	12.3	12.3	12.3
		Panama Canal Commission	5.9	5.9	6.8	6.8	6.4
		Other transport and communications	5.3	5.5	5.5	5.5	6.0
	Financial intermediation		10.9	11.1	10.4	11.1	11.0
	Housing		13.3	13.5	13.6	13.7	13.4
	Public administration		10.3	10.4	10.5	10.5	10.4
	Other services		5.5	5.6	5.6	5.5	5.5
Plus import taxes ^2/			4.0	4.0	4.0	4.0	4.2
Less imputed banking services			2.4	3.8	3.7	4.0	3.9

Sources: Office of the Comptroller General; and Fund staff estimates.

^{^2/}Includes the sales tax; “impuesto a la transferencia de bienes muebles.”

Table 2.

Panama: National Accounts by Use

Sources: Office of the Comptroller General; and Fund staff estimates.

^{^1/}Includes changes in inventories

Table 2.

Panama: National Accounts by Use

				1993	1994	1995	1996	1997
(In millions of balboas at current prices)
Total domestic demand				7,198.9	7,577.8	7,986.8	8,229.8	8,876.4
Consumption				5,449.9	5,681.1	5,913.0	6,284.2	6,644.3
Public				1,543.2	1,525.6	1,595.1	1,650.5	1,788.2
Private				3,906.7	4,155.5	4,317.9	4,633.7	4,856.1
Gross domestic investment				1,749.0	1,896.7	2,073.8	1,945.6	2,232.1
Public				288.8	266.7	272.0	313.4	388.4
Private ^1/				1,460.2	1,630.0	1,801.8	1,632.2	1,843.7
Balance of trade (goods and nonfactor services)				53.8	156.2	-80.7	13.8	-96.7
Excluding the Colon Free Zone				-212.7	-255.3	-231.3	-344.4	-463.8
	Exports of goods and nonfactor services			2,715.2	3,074.7	2,990.3	3,117.0	3,397.3
		Excluding the Colon Free Zone		1,999.0	2,143.0	2,322.5	2,312.8	2,396.5
	Imports of goods and nonfactor services			2,661.4	2,918.5	3,071.0	3,103.2	3,494.0
		Excluding the Colon Free Zone		2,211.6	2,398.3	2,553.8	2,657.2	2,860.2
Gross domestic product at current market prices				7,252.7	7,733.9	7,906.1	8,243.6	8,779.7
(In percent of GDP)
Total domestic demand				99.3	98.0	101.0	99.8	101.1
Consumption				75.1	73.5	74.8	76.2	75.7
Public				21.3	19.7	20.2	20.0	20.4
Private				53.9	53.7	54.6	56.2	55.3
Gross domestic investment				24.1	24.5	26.2	23.6	25.4
Public				4.0	3.4	3.4	3.8	4.4
Private ^1/				20.1	22.8	22.8	19.8	21.0
Balance of trade (goods and nonfactor services)				0.7	2.0	-1.0	0.2	-1.1
Excluding the Colon Free Zone				-2.9	-3.3	-2.9	-4.2	-5.3
	Exports of goods and nonfactor services			37.4	39.8	37.8	37.8	38.7
		Excluding the Colon Free Zone		27.6	27.7	29.4	28.1	27.3
	Imports of goods and nonfactor services			36.7	37.7	38.8	37.6	39.8
		Excluding the Colon Free Zone		30.5	31.0	32.3	32.2	32.6
Gross domestic product at current market prices				100.0	100.0	100.0	100.0	100.0
(Annual percent change)
Total domestic demand				8.6	5.3	5.4	3.0	7.9
Consumption				2.4	4.2	4.1	6.3	5.7
Public				16.5	-1.1	4.6	3.5	8.3
Private ^1/				-2.3	6.4	3.9	7.3	4.8
Gross domestic investment				33.8	8.4	9.3	-6.2	14.7
Public				38.4	-7.7	2.0	15.2	23.9
Private ^1/				32.9	11.6	10.5	-9.4	13.0
Balance of trade (goods and nonfactor services)				450.9	190.2	-151.7	-117.1	-801.4
	Excluding the Colon Free Zone			68.3	20.0	-9.4	48.9	56.7
		Exports of goods and nonfactor services		9.5	13.2	-2.7	4.2	9.0
			Excluding the Colon Free Zone	5.7	7.2	8.4	-0.4	5.7
		Imports of goods and nonfactor services		7.7	9.7	5.2	1.0	12.6
			Excluding the Colon Free Zone	9.6	8.4	6.5	4.0	11.6
Gross domestic product at current market prices				9.2	6.6	2.2	4.3	6.5

Sources: Office of the Comptroller General; and Fund staff estimates.

^{^1/}Includes changes in inventories

Table 2.

Panama: National Accounts by Use

				1993	1994	1995	1996	1997
(In millions of balboas at current prices)
Total domestic demand				7,198.9	7,577.8	7,986.8	8,229.8	8,876.4
Consumption				5,449.9	5,681.1	5,913.0	6,284.2	6,644.3
Public				1,543.2	1,525.6	1,595.1	1,650.5	1,788.2
Private				3,906.7	4,155.5	4,317.9	4,633.7	4,856.1
Gross domestic investment				1,749.0	1,896.7	2,073.8	1,945.6	2,232.1
Public				288.8	266.7	272.0	313.4	388.4
Private ^1/				1,460.2	1,630.0	1,801.8	1,632.2	1,843.7
Balance of trade (goods and nonfactor services)				53.8	156.2	-80.7	13.8	-96.7
Excluding the Colon Free Zone				-212.7	-255.3	-231.3	-344.4	-463.8
	Exports of goods and nonfactor services			2,715.2	3,074.7	2,990.3	3,117.0	3,397.3
		Excluding the Colon Free Zone		1,999.0	2,143.0	2,322.5	2,312.8	2,396.5
	Imports of goods and nonfactor services			2,661.4	2,918.5	3,071.0	3,103.2	3,494.0
		Excluding the Colon Free Zone		2,211.6	2,398.3	2,553.8	2,657.2	2,860.2
Gross domestic product at current market prices				7,252.7	7,733.9	7,906.1	8,243.6	8,779.7
(In percent of GDP)
Total domestic demand				99.3	98.0	101.0	99.8	101.1
Consumption				75.1	73.5	74.8	76.2	75.7
Public				21.3	19.7	20.2	20.0	20.4
Private				53.9	53.7	54.6	56.2	55.3
Gross domestic investment				24.1	24.5	26.2	23.6	25.4
Public				4.0	3.4	3.4	3.8	4.4
Private ^1/				20.1	22.8	22.8	19.8	21.0
Balance of trade (goods and nonfactor services)				0.7	2.0	-1.0	0.2	-1.1
Excluding the Colon Free Zone				-2.9	-3.3	-2.9	-4.2	-5.3
	Exports of goods and nonfactor services			37.4	39.8	37.8	37.8	38.7
		Excluding the Colon Free Zone		27.6	27.7	29.4	28.1	27.3
	Imports of goods and nonfactor services			36.7	37.7	38.8	37.6	39.8
		Excluding the Colon Free Zone		30.5	31.0	32.3	32.2	32.6
Gross domestic product at current market prices				100.0	100.0	100.0	100.0	100.0
(Annual percent change)
Total domestic demand				8.6	5.3	5.4	3.0	7.9
Consumption				2.4	4.2	4.1	6.3	5.7
Public				16.5	-1.1	4.6	3.5	8.3
Private ^1/				-2.3	6.4	3.9	7.3	4.8
Gross domestic investment				33.8	8.4	9.3	-6.2	14.7
Public				38.4	-7.7	2.0	15.2	23.9
Private ^1/				32.9	11.6	10.5	-9.4	13.0
Balance of trade (goods and nonfactor services)				450.9	190.2	-151.7	-117.1	-801.4
	Excluding the Colon Free Zone			68.3	20.0	-9.4	48.9	56.7
		Exports of goods and nonfactor services		9.5	13.2	-2.7	4.2	9.0
			Excluding the Colon Free Zone	5.7	7.2	8.4	-0.4	5.7
		Imports of goods and nonfactor services		7.7	9.7	5.2	1.0	12.6
			Excluding the Colon Free Zone	9.6	8.4	6.5	4.0	11.6
Gross domestic product at current market prices				9.2	6.6	2.2	4.3	6.5

Sources: Office of the Comptroller General; and Fund staff estimates.

^{^1/}Includes changes in inventories

Table 3.

Panama: Saving and Investment

Sources: Office of the Comptroller General; and Fund staff estimates.

Table 3.

Panama: Saving and Investment

		1993	1994	1995	1996	1997
(In millions of balboas)
Gross domestic investment		1,749.0	1,896.7	2,073.8	1,945.6	2,232.1
Fixed capital formation		1,723.8	1,873.2	1,972.7	2,069.3	2,276.0
	Public sector	288.8	266.7	272.0	313.4	388.4
	Private sector	1,435.0	1,606.5	1,700.7	1,755.9	1,887.6
Changes in inventories		25.2	23.5	101.1	-123.7	-43.9
Gross national saving		1,592.6	1,866.4	1,804.5	1,813.3	1,967.9
Public sector saving		187.8	290.2	278.6	342.5	290.1
Private sector saving		1,404.8	1,576.2	1,525.9	1,470.8	1,677.8
Foreign saving		156.4	30.3	269.3	132.3	264.3
(In percent of GDP)
Gross domestic investment		24.1	24.5	26.2	23.6	25.4
Fixed capital formation		23.8	24.2	25.0	25.1	25.9
	Public sector	4.0	3.4	3.4	3.8	4.4
	Private sector	19.8	20.8	21.5	21.3	21.5
Changes in inventories		0.3	0.3	1.3	-1.5	-0.5
Gross national saving		22.0	24.1	22.8	22.0	22.4
Public sector saving		2.6	3.8	3.5	4.2	3.3
Private sector saving		19.4	20.4	19.3	17.8	19.1
Foreign saving		2.2	0.4	3.4	1.6	3.0

Sources: Office of the Comptroller General; and Fund staff estimates.

Table 3.

Panama: Saving and Investment

		1993	1994	1995	1996	1997
(In millions of balboas)
Gross domestic investment		1,749.0	1,896.7	2,073.8	1,945.6	2,232.1
Fixed capital formation		1,723.8	1,873.2	1,972.7	2,069.3	2,276.0
	Public sector	288.8	266.7	272.0	313.4	388.4
	Private sector	1,435.0	1,606.5	1,700.7	1,755.9	1,887.6
Changes in inventories		25.2	23.5	101.1	-123.7	-43.9
Gross national saving		1,592.6	1,866.4	1,804.5	1,813.3	1,967.9
Public sector saving		187.8	290.2	278.6	342.5	290.1
Private sector saving		1,404.8	1,576.2	1,525.9	1,470.8	1,677.8
Foreign saving		156.4	30.3	269.3	132.3	264.3
(In percent of GDP)
Gross domestic investment		24.1	24.5	26.2	23.6	25.4
Fixed capital formation		23.8	24.2	25.0	25.1	25.9
	Public sector	4.0	3.4	3.4	3.8	4.4
	Private sector	19.8	20.8	21.5	21.3	21.5
Changes in inventories		0.3	0.3	1.3	-1.5	-0.5
Gross national saving		22.0	24.1	22.8	22.0	22.4
Public sector saving		2.6	3.8	3.5	4.2	3.3
Private sector saving		19.4	20.4	19.3	17.8	19.1
Foreign saving		2.2	0.4	3.4	1.6	3.0

Sources: Office of the Comptroller General; and Fund staff estimates.

Table 4.

Panama: Agricultural Production

Source: Office of the Comptroller General.

Table 4.

Panama: Agricultural Production

		1993	1994	1995	1996	1997
(In millions of balboas at 1982 prices)
Total		480.4	493.3	509.2	512.9	506.8
Crops		259.4	269.0	262.9	259.0	239.3
	Rice	31.8	32.3	33.2	35.1	24.5
	Corn	17.1	17.3	17.6	18.2	10.9
	Bananas	130.5	136.1	126.6	115.7	109.2
	Sugarcane	19.0	19.3	18.2	19.6	22.3
	Coffee	11.8	13.2	15.0	15.0	14.1
	Other	49.2	50.8	52.3	55.4	58.3
Livestock		155.0	157.3	159.3	168.0	170.6
Forestry		14.7	14.6	12.8	12.0	12.7
Fish		51.3	52.4	74.2	73.9	84.2
(Annual percent change)
Total		0.0	2.7	3.2	0.7	-1.2
Crops		-3.0	3.7	-2.3	-1.5	-7.6
Livestock		-0.2	1.5	1.3	5.5	1.5
Forestry		0.7	-0.7	-12.3	-6.3	5.8
Fish		19.0	2.1	41.6	-0.4	13.9

Source: Office of the Comptroller General.

Table 4.

Panama: Agricultural Production

		1993	1994	1995	1996	1997
(In millions of balboas at 1982 prices)
Total		480.4	493.3	509.2	512.9	506.8
Crops		259.4	269.0	262.9	259.0	239.3
	Rice	31.8	32.3	33.2	35.1	24.5
	Corn	17.1	17.3	17.6	18.2	10.9
	Bananas	130.5	136.1	126.6	115.7	109.2
	Sugarcane	19.0	19.3	18.2	19.6	22.3
	Coffee	11.8	13.2	15.0	15.0	14.1
	Other	49.2	50.8	52.3	55.4	58.3
Livestock		155.0	157.3	159.3	168.0	170.6
Forestry		14.7	14.6	12.8	12.0	12.7
Fish		51.3	52.4	74.2	73.9	84.2
(Annual percent change)
Total		0.0	2.7	3.2	0.7	-1.2
Crops		-3.0	3.7	-2.3	-1.5	-7.6
Livestock		-0.2	1.5	1.3	5.5	1.5
Forestry		0.7	-0.7	-12.3	-6.3	5.8
Fish		19.0	2.1	41.6	-0.4	13.9

Source: Office of the Comptroller General.

Table 5.

Panama: Value Added in Manufacturing

Source: Office of the Comptroller General.

Table 5.

Panama: Value Added in Manufacturing

		1993	1994	1995	1996	1997
(In millions of balboas at 1982 prices)
Total		589.5	614.6	615.8	620.3	642.6
Food		227.2	237.1	245.5	249.1	263.0
Beverages		53.1	53.7	52.7	55.6	59.2
Tobacco		21.1	27.8	27.2	28.7	27.6
Petroleum products		21.1	15.1	10.5	19.0	17.4
Textiles and garments		42.8	38.1	34.4	32.0	30.0
Leather products and footwear		10.9	11.6	13.0	11.4	10.4
Wood and furniture		25.3	31.4	27.6	28.4	31.1
Paper products		26.1	29.9	30.6	28.8	27.2
Printing and publishing		14.2	15.2	16.2	13.5	12.9
Chemicals, rubber, and plastic products		58.1	57.6	59.3	56.8	57.2
Glass and other mineral products		45.5	49.9	45.2	41.1	44.2
Basic metal industries		10.8	9.8	10.9	13.7	17.6
Metal products, machinery, and equipment		19.3	21.5	22.7	21.2	24.5
Other		14.0	15.9	20.0	21.0	20.3
(Annual percent change)
Total		6.3	4.3	0.2	0.7	3.6
Petroleum products		-19.8	-28.4	-30.5	81.0	-8.4
Total (excluding petroleum products)		7.6	5.5	1.0	-0.7	4.0
	Food, beverages, and tobacco	3.8	5.7	2.1	2.5	4.9
	Other products	12.3	5.2	-0.4	-4.3	2.8

Source: Office of the Comptroller General.

Table 5.

Panama: Value Added in Manufacturing

		1993	1994	1995	1996	1997
(In millions of balboas at 1982 prices)
Total		589.5	614.6	615.8	620.3	642.6
Food		227.2	237.1	245.5	249.1	263.0
Beverages		53.1	53.7	52.7	55.6	59.2
Tobacco		21.1	27.8	27.2	28.7	27.6
Petroleum products		21.1	15.1	10.5	19.0	17.4
Textiles and garments		42.8	38.1	34.4	32.0	30.0
Leather products and footwear		10.9	11.6	13.0	11.4	10.4
Wood and furniture		25.3	31.4	27.6	28.4	31.1
Paper products		26.1	29.9	30.6	28.8	27.2
Printing and publishing		14.2	15.2	16.2	13.5	12.9
Chemicals, rubber, and plastic products		58.1	57.6	59.3	56.8	57.2
Glass and other mineral products		45.5	49.9	45.2	41.1	44.2
Basic metal industries		10.8	9.8	10.9	13.7	17.6
Metal products, machinery, and equipment		19.3	21.5	22.7	21.2	24.5
Other		14.0	15.9	20.0	21.0	20.3
(Annual percent change)
Total		6.3	4.3	0.2	0.7	3.6
Petroleum products		-19.8	-28.4	-30.5	81.0	-8.4
Total (excluding petroleum products)		7.6	5.5	1.0	-0.7	4.0
	Food, beverages, and tobacco	3.8	5.7	2.1	2.5	4.9
	Other products	12.3	5.2	-0.4	-4.3	2.8

Source: Office of the Comptroller General.

Table 6.

Panama: Electricity Generation and Consumption

(In thousands of gigawatt hours) ^1/

Source: Hydraulic Resources and Electricity Institute (IRHE).

^{^1/}A gigawatt hour is equal to one billion watts generated or consumed during one hour.

Table 6.

Panama: Electricity Generation and Consumption

(In thousands of gigawatt hours) ^1/

	1993	1994	1995	1996	1997
Net generation	3.15	3.36	3.52	3.82	4.05
Hydro	2.30	2.39	2.42	3.00	2.90
Thermal	0.85	0.97	1.10	0.82	1.15
Total consumption	2.49	2.67	2.87	2.98	3.30
Residential	0.75	0.79	0.85	0.86	0.94
Commercial	0.84	0.91	1.00	1.04	1.18
Industrial	0.41	0.43	0.46	0.47	0.47
Government	0.45	0.47	0.53	0.55	0.57
Petroterminal	0.01	0.01	0.01	0.00	0.00
Other	0.03	0.06	0.02	0.06	0.14

Source: Hydraulic Resources and Electricity Institute (IRHE).

^{^1/}A gigawatt hour is equal to one billion watts generated or consumed during one hour.

Table 6.

Panama: Electricity Generation and Consumption

(In thousands of gigawatt hours) ^1/

	1993	1994	1995	1996	1997
Net generation	3.15	3.36	3.52	3.82	4.05
Hydro	2.30	2.39	2.42	3.00	2.90
Thermal	0.85	0.97	1.10	0.82	1.15
Total consumption	2.49	2.67	2.87	2.98	3.30
Residential	0.75	0.79	0.85	0.86	0.94
Commercial	0.84	0.91	1.00	1.04	1.18
Industrial	0.41	0.43	0.46	0.47	0.47
Government	0.45	0.47	0.53	0.55	0.57
Petroterminal	0.01	0.01	0.01	0.00	0.00
Other	0.03	0.06	0.02	0.06	0.14

Source: Hydraulic Resources and Electricity Institute (IRHE).

^{^1/}A gigawatt hour is equal to one billion watts generated or consumed during one hour.

Table 7.

Panama: Private Sector Construction Permits, District of Panama

(In thousands of square meters)

Source: Office of the Comptroller General.

Table 7.

Panama: Private Sector Construction Permits, District of Panama

(In thousands of square meters)

	1993	1994	1995	1996	1997
Total	968.9	912.4	827.9	925.3	702.4
Residential	706.7	550.4	505.8	430.0	354.9
Commercial	228.9	299.7	277.0	438.9	319.9
Industrial	29.0	14.8	14.4	26.8	3.9
Other	4.3	47.6	30.7	29.6	23.7

Source: Office of the Comptroller General.

Table 7.

Panama: Private Sector Construction Permits, District of Panama

(In thousands of square meters)

	1993	1994	1995	1996	1997
Total	968.9	912.4	827.9	925.3	702.4
Residential	706.7	550.4	505.8	430.0	354.9
Commercial	228.9	299.7	277.0	438.9	319.9
Industrial	29.0	14.8	14.4	26.8	3.9
Other	4.3	47.6	30.7	29.6	23.7

Source: Office of the Comptroller General.

Table 8.

Panama: Domestic Sales of Petroleum

Source: Ministry of Commerce and Industry.

^{^1/}Includes marine diesel.

Table 8.

Panama: Domestic Sales of Petroleum

	1993	1994	1995	1996	1997
(In millions of U.S. dollars)
Domestic sales	190.6	200.0	222.5	255.8	309.1
Gasoline	58.6	59.9	69.0	80.5	87.7
Diesel	79.9	88.5	93.7	103.8	126.9
Fuel oil	22.8	27.3	34.3	39.8	35.6
Kerosene	2.3	2.2	2.1	2.0	3.1
LP gas	16.3	17.3	19.4	22.1	33.1
Other products ^1/	10.7	4.8	4.0	7.6	22.7
(In millions of barrels)
Domestic sales	8.3	9.0	9.7	9.8	10.8
Gasoline	2.3	2.4	2.6	2.7	2.9
Diesel	3.1	3.7	4.1	3.6	4.3
Fuel oil	1.5	1.7	1.8	1.9	1.7
Kerosene	0:1	0.1	0.1	0.1	0.1
LP gas	0.8	0.9	0.9	1.0	1.0
Other products ^1/	0.5	0.2	0.2	0.5	0.8

Source: Ministry of Commerce and Industry.

^{^1/}Includes marine diesel.

Table 8.

Panama: Domestic Sales of Petroleum

	1993	1994	1995	1996	1997
(In millions of U.S. dollars)
Domestic sales	190.6	200.0	222.5	255.8	309.1
Gasoline	58.6	59.9	69.0	80.5	87.7
Diesel	79.9	88.5	93.7	103.8	126.9
Fuel oil	22.8	27.3	34.3	39.8	35.6
Kerosene	2.3	2.2	2.1	2.0	3.1
LP gas	16.3	17.3	19.4	22.1	33.1
Other products ^1/	10.7	4.8	4.0	7.6	22.7
(In millions of barrels)
Domestic sales	8.3	9.0	9.7	9.8	10.8
Gasoline	2.3	2.4	2.6	2.7	2.9
Diesel	3.1	3.7	4.1	3.6	4.3
Fuel oil	1.5	1.7	1.8	1.9	1.7
Kerosene	0:1	0.1	0.1	0.1	0.1
LP gas	0.8	0.9	0.9	1.0	1.0
Other products ^1/	0.5	0.2	0.2	0.5	0.8

Source: Ministry of Commerce and Industry.

^{^1/}Includes marine diesel.

Table 9.

Panama: Labor Force Statistics ^1/

Sources: Ministry of Labor; and Office of the Comptroller General.

^{^1/}Data are based on August surveys, except for total population which is a mid-year estimate.

^{^2/}Excludes indigenous population, canal area and collective housing, but includes employees in the formal and informal sectors, employers, and the self-employed.

^{^3/}Total labor force as percent of the working-age population.

^{^4/}Employed labor force as a percent of the working-age population.

^{^5/}Includes the cities of Panama and Colon.

Table 9.

Panama: Labor Force Statistics ^1/

			1993	1994	1995	1996	1997
(Thousands of persons)
Total population			2,535.0	2,582.6	2,631.0	2,674.5	2,718.7
Working-age population			1,557.9	1,594.7	1,632.4	1,670.2	1,706.8
Total labor force ^2/			940.3	967.3	1,007.9	1,012.1	1,049.4
Employment by activity			815.6	831.8	866.7	867.2	909.1
Agriculture and mining			189.3	167.9	181.9	176.0	171.6
Manufacturing			84.4	89.5	92.6	94.0	96.2
Public utilities			8.6	9.3	8.8	9.1	9.1
Construction			49.5	52.5	53.6	54.9	59.6
Commerce			135.0	146.1	152.1	153.0	168.1
Banking			17.9	19.4	19.7	22.1	22.8
Transport and communication			59.3	60.7	63.4	59.0	62.1
Other services			271.5	286.4	294.6	299.1	319.6
Unemployment			124.7	135.5	141.3	144.9	140.3
Memorandum items:
Number of employed by:
	Public sector		156.6	163.3	161.4	160.2	161.8
	Private business		323.4	340.4	354.3	359.4	372.7
	Self-employed		236.1	232.8	247.0	250.3	275.9
	Other		99.4	95.4	103.9	97.3	98.7
(Annual percent change)
Total population			1.9	1.9	1.9	1.7	1.7
Working age population			2.4	2.4	2.4	2.3	2.2
Total labor force			2.7	2.9	4.2	0.4	3.7
	Employed		4.3	2.0	4.2	0.1	4.8
	Unemployed		-7.2	8.7	4.3	2.5	-3.2
(In percent)
Labor force participation rate ^3/			60.4	60.7	61.7	60.6	61.5
Employment ratio ^4/			52.4	52.2	53.1	51.9	53.3
Unemployment rate			13.3	14.0	14.0	14.3	13.4
	Of which:
		Metropolitan areas ^5/	15.6	16.0	16.6	16.9	15.4

Sources: Ministry of Labor; and Office of the Comptroller General.

^{^1/}Data are based on August surveys, except for total population which is a mid-year estimate.

^{^2/}Excludes indigenous population, canal area and collective housing, but includes employees in the formal and informal sectors, employers, and the self-employed.

^{^3/}Total labor force as percent of the working-age population.

^{^4/}Employed labor force as a percent of the working-age population.

^{^5/}Includes the cities of Panama and Colon.

Table 9.

Panama: Labor Force Statistics ^1/

			1993	1994	1995	1996	1997
(Thousands of persons)
Total population			2,535.0	2,582.6	2,631.0	2,674.5	2,718.7
Working-age population			1,557.9	1,594.7	1,632.4	1,670.2	1,706.8
Total labor force ^2/			940.3	967.3	1,007.9	1,012.1	1,049.4
Employment by activity			815.6	831.8	866.7	867.2	909.1
Agriculture and mining			189.3	167.9	181.9	176.0	171.6
Manufacturing			84.4	89.5	92.6	94.0	96.2
Public utilities			8.6	9.3	8.8	9.1	9.1
Construction			49.5	52.5	53.6	54.9	59.6
Commerce			135.0	146.1	152.1	153.0	168.1
Banking			17.9	19.4	19.7	22.1	22.8
Transport and communication			59.3	60.7	63.4	59.0	62.1
Other services			271.5	286.4	294.6	299.1	319.6
Unemployment			124.7	135.5	141.3	144.9	140.3
Memorandum items:
Number of employed by:
	Public sector		156.6	163.3	161.4	160.2	161.8
	Private business		323.4	340.4	354.3	359.4	372.7
	Self-employed		236.1	232.8	247.0	250.3	275.9
	Other		99.4	95.4	103.9	97.3	98.7
(Annual percent change)
Total population			1.9	1.9	1.9	1.7	1.7
Working age population			2.4	2.4	2.4	2.3	2.2
Total labor force			2.7	2.9	4.2	0.4	3.7
	Employed		4.3	2.0	4.2	0.1	4.8
	Unemployed		-7.2	8.7	4.3	2.5	-3.2
(In percent)
Labor force participation rate ^3/			60.4	60.7	61.7	60.6	61.5
Employment ratio ^4/			52.4	52.2	53.1	51.9	53.3
Unemployment rate			13.3	14.0	14.0	14.3	13.4
	Of which:
		Metropolitan areas ^5/	15.6	16.0	16.6	16.9	15.4

Sources: Ministry of Labor; and Office of the Comptroller General.

^{^1/}Data are based on August surveys, except for total population which is a mid-year estimate.

^{^2/}Excludes indigenous population, canal area and collective housing, but includes employees in the formal and informal sectors, employers, and the self-employed.

^{^3/}Total labor force as percent of the working-age population.

^{^4/}Employed labor force as a percent of the working-age population.

^{^5/}Includes the cities of Panama and Colon.

Table 10.

Panama: Average Prices Received by Farmers

Source: Office of the Comptroller General.

^{^1/}First grade.

^{^2/}Colorado or Chiricano.

^{^3/}Deflated by the agricultural wholesale price index.

Table 10.

Panama: Average Prices Received by Farmers

	1993	1994	1995	1996	1997
(In balboas per unit)
Rice (100 lb.) ^1/	12.12	12.56	12.87	11.91	12.32
Corn (100 lb.)	11.71	11.67	11.86	12.34	12.26
Beans (100 lb.) ^2/	33.50	33.12	35.13	32.77	38.53
Potatoes (100 lb.)	18.88	26.29	23.40	24.72	19.30
Bananas (stalk)	2.46	2.68	2.17	2.61	2.76
Chicken (live, lb.)	1.20	1.23	1.24	1.21	1.23
Milk, fresh (bottle)	0.30	0.30	0.29	0.27	0.28
(In 1987 prices) ^3/
Rice (100 lb.) ^1/	10.95	11.07	11.37	10.73	11.03
Corn (100 lb.)	10.58	10.29	10.48	11.11	10.97
Beans (100 lb.) ^2/	30.27	29.19	31.04	29.52	34.49
Potatoes (100 lb.)	17.06	23.17	20.68	22.27	17.27
Bananas stalk	2.22	2.36	1.92	2.35	2.47
Chicken (live, lb.)	1.08	1.08	1.10	1.09	1.10
Milk, fresh (bottle)	0.27	0.26	0.26	0.24	0.25

Source: Office of the Comptroller General.

^{^1/}First grade.

^{^2/}Colorado or Chiricano.

^{^3/}Deflated by the agricultural wholesale price index.

Table 10.

Panama: Average Prices Received by Farmers

	1993	1994	1995	1996	1997
(In balboas per unit)
Rice (100 lb.) ^1/	12.12	12.56	12.87	11.91	12.32
Corn (100 lb.)	11.71	11.67	11.86	12.34	12.26
Beans (100 lb.) ^2/	33.50	33.12	35.13	32.77	38.53
Potatoes (100 lb.)	18.88	26.29	23.40	24.72	19.30
Bananas (stalk)	2.46	2.68	2.17	2.61	2.76
Chicken (live, lb.)	1.20	1.23	1.24	1.21	1.23
Milk, fresh (bottle)	0.30	0.30	0.29	0.27	0.28
(In 1987 prices) ^3/
Rice (100 lb.) ^1/	10.95	11.07	11.37	10.73	11.03
Corn (100 lb.)	10.58	10.29	10.48	11.11	10.97
Beans (100 lb.) ^2/	30.27	29.19	31.04	29.52	34.49
Potatoes (100 lb.)	17.06	23.17	20.68	22.27	17.27
Bananas stalk	2.22	2.36	1.92	2.35	2.47
Chicken (live, lb.)	1.08	1.08	1.10	1.09	1.10
Milk, fresh (bottle)	0.27	0.26	0.26	0.24	0.25

Source: Office of the Comptroller General.

^{^1/}First grade.

^{^2/}Colorado or Chiricano.

^{^3/}Deflated by the agricultural wholesale price index.

Table 11.

Panama: Selected Price Indices ^1/

(Annual percent change)

Sources: Office of the Comptroller General; and Fund staff estimates.

^{^1/}The consumer and wholesale price indices use 1987 as the reference period.

Table 11.

Panama: Selected Price Indices ^1/

(Annual percent change)

	1993	1994	1995	1996	1997
(Period average)
Consumer price index	0.5	1.3	0.9	1.3	1.3
Wholesale price index	-0.3	2.0	3.0	2.1	-2.2
Imports	1.8	1.9	3.9	3.8	-4.1
Industrial products	-2.5	2.2	2.7	1.3	-0.9
Agricultural products	0.6	2.5	-0.2	-1.9	0.6
GDP deflator	3.6	3.7	0.5	1.7	2.0
(End of period)
Consumer price index	1.0	1.3	0.8	2.3	-0.5
Wholesale price index	0.2	4.4	1.8	3.5	-3.9
Imports	1.0	5.1	2.8	6.0	-6.3
Industrial products	-1.4	4.4	1.5	2.2	-2.5
Agricultural products	3.4	2.1	-1.0	-0.9	0.8

Sources: Office of the Comptroller General; and Fund staff estimates.

^{^1/}The consumer and wholesale price indices use 1987 as the reference period.

Table 11.

Panama: Selected Price Indices ^1/

(Annual percent change)

	1993	1994	1995	1996	1997
(Period average)
Consumer price index	0.5	1.3	0.9	1.3	1.3
Wholesale price index	-0.3	2.0	3.0	2.1	-2.2
Imports	1.8	1.9	3.9	3.8	-4.1
Industrial products	-2.5	2.2	2.7	1.3	-0.9
Agricultural products	0.6	2.5	-0.2	-1.9	0.6
GDP deflator	3.6	3.7	0.5	1.7	2.0
(End of period)
Consumer price index	1.0	1.3	0.8	2.3	-0.5
Wholesale price index	0.2	4.4	1.8	3.5	-3.9
Imports	1.0	5.1	2.8	6.0	-6.3
Industrial products	-1.4	4.4	1.5	2.2	-2.5
Agricultural products	3.4	2.1	-1.0	-0.9	0.8

Sources: Office of the Comptroller General; and Fund staff estimates.

^{^1/}The consumer and wholesale price indices use 1987 as the reference period.

Table 12.

Panama. Consumer Price Index

(1987=100)

Sources: Office of the Comptroller General; and Fund staff estimates.

Table 12.

Panama. Consumer Price Index

(1987=100)

		Total	Food	Clothing	Housing	Miscellaneous
(In percent)
Weights:		100.0	34.9	5.1	21.0	39.0
(Period average)
1993		105.1	108.4	110.8	103.7	102.2
1994		106.5	110.0	111.5	103.6	104.1
1995		107.5	110.6	110.0	105.4	105.5
1996		108.9	111.4	109.0	108.2	106.9
1997		110.2	112.2	106.8	110.5	108.7
(End of period)
1993		105.8	109.0	111.4	103.4	103.3
1994		107.2	111.7	108.9	104.2	104.5
1995		108.1	111.7	109.4	106.5	105.6
1996		110.6	113.6	108.8	110.2	108.4
1997		110.1	112.6	106.4	110.6	108.1
1993
	March	104.8	107.7	109.9	104.0	101.9
	June	105.1	108.4	111.2	103.9	101.9
	September	104.8	108.1	111.5	103.8	101.6
	December	105.8	109.0	111.4	103.4	103.3
1994
	March	105.8	108.3	112.8	103.5	103.9
	June	106.4	110.1	112.5	103.3	104.0
	September	106.7	110.7	110.4	103.7	104.3
	December	107.2	111.7	108.9	104.2	104.5
1995
	March	107.0	109.5	110.5	104.9	105.4
	June	107.7	110.3	110.6	105.5	106.2
	September	108.0	111.3	109.1	105.4	106.2
	December	108.1	111.7	109.4	106.5	105.6
1996
	March	108.4	111.3	110.2	107.0	106.4
	June	108.3	110.2	107.6	107.9	106.9
	September	109.1	111.9	109.3	108.7	106.9
	December	110.6	113.6	108.8	110.2	108.4
1997
	March	109.9	111.9	108.2	109.7	108.7
	June	110.3	112.0	106.5	110.5	109.1
	September	110.6	112.7	104.4	110.8	109.4
	December	110.1	112.6	106.4	110.6	108.1
1998
	March	110.4	112.2	108.3	110.5	108.9
	June	110.8	112.7	108.2	110.5	109.7
	September	111.5	112.7	108.1	113.2	110.0

Sources: Office of the Comptroller General; and Fund staff estimates.

Table 12.

Panama. Consumer Price Index

(1987=100)

		Total	Food	Clothing	Housing	Miscellaneous
(In percent)
Weights:		100.0	34.9	5.1	21.0	39.0
(Period average)
1993		105.1	108.4	110.8	103.7	102.2
1994		106.5	110.0	111.5	103.6	104.1
1995		107.5	110.6	110.0	105.4	105.5
1996		108.9	111.4	109.0	108.2	106.9
1997		110.2	112.2	106.8	110.5	108.7
(End of period)
1993		105.8	109.0	111.4	103.4	103.3
1994		107.2	111.7	108.9	104.2	104.5
1995		108.1	111.7	109.4	106.5	105.6
1996		110.6	113.6	108.8	110.2	108.4
1997		110.1	112.6	106.4	110.6	108.1
1993
	March	104.8	107.7	109.9	104.0	101.9
	June	105.1	108.4	111.2	103.9	101.9
	September	104.8	108.1	111.5	103.8	101.6
	December	105.8	109.0	111.4	103.4	103.3
1994
	March	105.8	108.3	112.8	103.5	103.9
	June	106.4	110.1	112.5	103.3	104.0
	September	106.7	110.7	110.4	103.7	104.3
	December	107.2	111.7	108.9	104.2	104.5
1995
	March	107.0	109.5	110.5	104.9	105.4
	June	107.7	110.3	110.6	105.5	106.2
	September	108.0	111.3	109.1	105.4	106.2
	December	108.1	111.7	109.4	106.5	105.6
1996
	March	108.4	111.3	110.2	107.0	106.4
	June	108.3	110.2	107.6	107.9	106.9
	September	109.1	111.9	109.3	108.7	106.9
	December	110.6	113.6	108.8	110.2	108.4
1997
	March	109.9	111.9	108.2	109.7	108.7
	June	110.3	112.0	106.5	110.5	109.1
	September	110.6	112.7	104.4	110.8	109.4
	December	110.1	112.6	106.4	110.6	108.1
1998
	March	110.4	112.2	108.3	110.5	108.9
	June	110.8	112.7	108.2	110.5	109.7
	September	111.5	112.7	108.1	113.2	110.0

Sources: Office of the Comptroller General; and Fund staff estimates.

Table 13.

Panama: Wholesale Price Index

(1987 = 100)

Sources: Office of the Comptroller General; and Fund staff estimates.

Table 13.

Panama: Wholesale Price Index

(1987 = 100)

		Total	Imports	Industrial	Agricultural
(In percent)
Weights		100.0	43.7	45.1	11.2
(Period average)
1993		110.1	114.8	105.6	110.7
1994		112.4	116.9	107.9	113.5
1995		115.7	121.5	110.8	113.2
1996		118.2	126.2	112.3	111.0
1997		115.5	121.0	111.2	111.7
(End of period)
1993		109.3	112.8	105.2	112.0
1994		114.1	118.6	109.8	114.4
1995		116.2	121.9	111.4	113.2
1996		120.3	129.2	113.8	112.2
1997		115.6	121.1	111.0	113.1
1993
	March	110.0	114.3	106.2	109.1
	June	110.9	116.4	105.8	110.0
	September	110.3	115.6	105.0	111.6
	December	109.3	112.8	105.2	112.0
1994
	March	110.1	114.2	105.9	111.7
	June	112.1	117.1	106.9	114.7
	September	113.2	117.8	108.9	113.0
	December	114.1	118.6	109.8	114.4
1995
	March	114.7	120.0	110.2	112.2
	June	116.0	121.8	111.1	113.7
	September	116.0	122.4	110.6	113.6
	December	116.2	121.9	111.4	113.2
1996
	March	117.8	126.3	111.6	109.9
	June	117.0	124.3	111.4	111.0
	September	117.6	125.0	112.2	111.0
	December	120.3	129.2	113.8	112.2
1997
	March	115.8	121.3	111.7	111.0
	June	115.4	120.8	111.2	111.1
	September	115.3	120.7	111.0	111.7
	December	115.6	121.1	111.0	113.1
1998
	March	111.6	115.1	108.1	112.8
	June	111.1	113.9	108.0	113.2

Sources: Office of the Comptroller General; and Fund staff estimates.

Table 13.

Panama: Wholesale Price Index

(1987 = 100)

		Total	Imports	Industrial	Agricultural
(In percent)
Weights		100.0	43.7	45.1	11.2
(Period average)
1993		110.1	114.8	105.6	110.7
1994		112.4	116.9	107.9	113.5
1995		115.7	121.5	110.8	113.2
1996		118.2	126.2	112.3	111.0
1997		115.5	121.0	111.2	111.7
(End of period)
1993		109.3	112.8	105.2	112.0
1994		114.1	118.6	109.8	114.4
1995		116.2	121.9	111.4	113.2
1996		120.3	129.2	113.8	112.2
1997		115.6	121.1	111.0	113.1
1993
	March	110.0	114.3	106.2	109.1
	June	110.9	116.4	105.8	110.0
	September	110.3	115.6	105.0	111.6
	December	109.3	112.8	105.2	112.0
1994
	March	110.1	114.2	105.9	111.7
	June	112.1	117.1	106.9	114.7
	September	113.2	117.8	108.9	113.0
	December	114.1	118.6	109.8	114.4
1995
	March	114.7	120.0	110.2	112.2
	June	116.0	121.8	111.1	113.7
	September	116.0	122.4	110.6	113.6
	December	116.2	121.9	111.4	113.2
1996
	March	117.8	126.3	111.6	109.9
	June	117.0	124.3	111.4	111.0
	September	117.6	125.0	112.2	111.0
	December	120.3	129.2	113.8	112.2
1997
	March	115.8	121.3	111.7	111.0
	June	115.4	120.8	111.2	111.1
	September	115.3	120.7	111.0	111.7
	December	115.6	121.1	111.0	113.1
1998
	March	111.6	115.1	108.1	112.8
	June	111.1	113.9	108.0	113.2

Sources: Office of the Comptroller General; and Fund staff estimates.

Table 14.

Panama: Selected Energy Prices

Sources: Hydraulic Resources and Electricity Institute (IRHE); and Ministry of Commerce and Industry.

Table 14.

Panama: Selected Energy Prices

Detail		1992	1993	1994	1995	1996	1997
(Balboas per megawatt hour)
Electricity rates
Weighted average		116.4	115.4	115.5	115.5	112.8	111.6
	Residential	123.3	121	120.5	120.5	120.5	118.0
	Commercial	119.6	119.4	119.2	119.2	119.5	118.1
	Industrial	102.6	100.9	100.7	99.4	99.4	99.4
	Government	113.8	113.1	103.4	112.7	111.6	111.0
(Balboas per gallon)
Petroleum prices
Gasoline premium		1.89	1.59	1.62	1.66	1.78	1.76
Gasoline regular		1.81	1.51	1.52	1.62	1.67	1.67
Diesel		1.18	1.07	1.13	1.20	1.30	1.26
Kerosene		1.10	1.05	1.10	1.18	1.23	1.14

Sources: Hydraulic Resources and Electricity Institute (IRHE); and Ministry of Commerce and Industry.

Table 14.

Panama: Selected Energy Prices

Detail		1992	1993	1994	1995	1996	1997
(Balboas per megawatt hour)
Electricity rates
Weighted average		116.4	115.4	115.5	115.5	112.8	111.6
	Residential	123.3	121	120.5	120.5	120.5	118.0
	Commercial	119.6	119.4	119.2	119.2	119.5	118.1
	Industrial	102.6	100.9	100.7	99.4	99.4	99.4
	Government	113.8	113.1	103.4	112.7	111.6	111.0
(Balboas per gallon)
Petroleum prices
Gasoline premium		1.89	1.59	1.62	1.66	1.78	1.76
Gasoline regular		1.81	1.51	1.52	1.62	1.67	1.67
Diesel		1.18	1.07	1.13	1.20	1.30

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Abstract

Introduction

I. Macroeconomic Trends

A. Developments During 1990-92

B. Developments During 1993-96