Panama Snapshot - PESTLE, SWOT, Risk and Macroeconomic Analysis report is designed to provide in-depth information about Panama including it’s PESTLE (political, economic, social, technological, legal and environmental), SWOT (Strengths, Weaknesses, Opportunities and Threats) and country risk analysis backed by macroeconomic data.
Panama, officially the Republic of Panama, is the southernmost country of Central America and the whole of North America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean to the north and the Pacific Ocean to the south. The capital is Panama City.
Panama is estimated to have population of 4.453 million in the year 2023 and expected to reach 4.677 million by 2027, increasing at a CAGR of 1.23%.
Panama’s real gross domestic product (GDP) was USD 35.32 billion in 2020 and while recovering from the COVID-19 impact it increased by 13.30% to be around USD 40.736 billion in 2021. It is further expected to increase by 4.91% and reach USD 54.325 billion by 2027.
Panama’s unemployment rate was 18.548% of total labor force in 2020. Despite slowdown in global economic activity due to COVID-19 pandemic, the unemployment in Panama decreased by 64.24% and reached 11.293% in 2021. Unemployment is further estimated to decrease by a CAGR of 2.07% and reach 9.963% of total labor force in Panama by 2027.
Panama’s per capita GDP was estimated at USD 16,172.62 whereas purchasing power parity (PPP) based per capita GDP was estimated to be at USD 36,370.38 for the year 2022.
In 2022, Panama government’s revenue was USD 14 billion whereas the expenditure was USD 16.867 billion. This resulted in Panama government’s net lending / borrowing negative at USD 2.867 billion in 2022 indicating that not enough financial resources were made available by the Panama government to boost economic growth.
The current account balance for Panama was estimated to be negative at USD 2.624 billion for the year 2022 and is expected to further increase at a CAGR of 3.62% and reach negative USD 2.462 billion by 2027. This negative current account balance indicates that Panama will remain a net borrower from the rest of the world till 2027.
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