PANAMA

As global trade slows, the trade hub slows too

BB2

MEDIUM RISK

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD65.05bn (World ranking 75, World Bank 2018)
Population 4.18mn (World ranking 127, World Bank 2018)
Form of state Presidential Republic
Head of government Laurentino CORTIZO (president)
Next elections 2024, presidential and legislative
  • Trade hub based on the Panama Canal and the Colon free trade zone
  • Regional financial hub and international banking center
  • Strong economic growth and moderate fiscal deficit
  • Business environment above regional average
  • Usage of the USD as local currency
  • Stable political system
  • Young population (median age: 29.2 years in 2017)
  • Tourism potential
  • Vulnerability to external shocks (global trade and financial links)
  • Moderate to high debt ratios
  • Rule of law and control of corruption are below average
  • Disparity of income between the Canal zone and rest of country, where poverty levels are high
  • Informality of the job markets (estimates: up to 50% of workers)
  • Deficiencies in education and vocational training

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United States 14%
1
19% China
Ecuador 8%
2
18% United States
Guatemala 7%
3
13% France
Costa Rica 6%
4
13% Singapore
Venezuela (Bolivian Rep.of) 5%
5
5% Colombia

Trade structure by product

(% of total)

Exports Rank Imports
Petroleum & related products 20%
1
18% Petroleum & related products
Other transport equipment 15%
2
17% Other transport equipment
Fish and preparations thereof 6%
3
11% Organic chemicals
Vegetables and fruits 6%
4
5% Apparel & clothing accessories
Medicinal and pharma.products 5%
5
5% Road vehicles

Contact

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Country Risk Analyst:

Georges Dib, Nathan Carlesimo

georges.dib@eulerhermes.com

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