Editing Panama (section)

==Economy==
{{Main|Economy of Panama}}
{{Update|date=May 2016}}
[[File:GDP per capita development Panama.svg|thumb|GDP per capita development Panama since 1950]]
[[File:Exclusa Miraflores Canal de Panama Panorama.jpg|thumb|A [[Panamax]] ship in transit through the Miraflores locks, [[Panama Canal]] ]]

According to the [[CIA World Factbook]], {{As of|2012|lc=y}} Panama had an [[unemployment rate]] of 2.7 percent.<ref name="cia"/> A food surplus was registered in August 2008. On the [[Human Development Index]], Panama ranked 60th in 2015. In more recent years, Panama's economy has experienced a boom, with growth in [[real gross domestic product]] (GDP) averaging over 10.4 percent in 2006–2008. Panama's economy was among the fastest growing and best managed in Latin America.{{citation needed|date=May 2016}} The [[Latin Business Chronicle]] predicted that Panama would be the fastest growing economy in Latin America during the five-year period from 2010 to 2014, matching Brazil's 10 percent rate.<ref>{{cite web |url=http://www.latinbusinesschronicle.com/app/article.aspx?id=3702 |title=Latin Business Chronicle |publisher=Latin Business Chronicle |date=October 7, 2009 |access-date=June 26, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100717100429/http://www.latinbusinesschronicle.com/app/article.aspx?id=3702 |archive-date=July 17, 2010 }}</ref>

The [[Panama Canal expansion project|expansion project on the Panama Canal]] is expected to boost and extend economic expansion for some time.<ref>Sullivan M. P. 2011 February 2. Panama: Politics and Economic Conditions and U.S. Relations. Congressional Research Service.</ref> Panama also signed the [[Panama–United States Trade Promotion Agreement]] which eliminates tariffs to US services.<ref>{{Cite web|url=https://ustr.gov/trade-agreements/free-trade-agreements/panama-tpa|title=U.S.- Panama Trade Promotion Agreement|website=ustr.gov|language=en|access-date=March 19, 2019|archive-date=July 15, 2009|archive-url=https://web.archive.org/web/20090715171019/https://ustr.gov/trade-agreements/free-trade-agreements/panama-tpa|url-status=live}}</ref>

Even though Panama is regarded as a [[World Bank high-income economy|high-income country]], it still remains a country of stark contrasts perpetuated by dramatic educational disparities. Between 2015 and 2017, poverty at less than US$5.5 a day fell from 15.4 to an estimated 14.1 percent.<ref>{{cite news|url= https://www.worldbank.org/en/country/panama/overview|work= worldbank.org|title= Panama Overview|access-date= March 11, 2019|archive-date= December 30, 2021|archive-url= https://web.archive.org/web/20211230201740/https://www.worldbank.org/en/country/panama/overview|url-status= live}}</ref>

===Economic sectors===
Panama's economy, because of its key geographic location, is mainly based on a well-developed service sector, especially commerce, tourism, and trading. The handover of the Canal and military installations by the United States has given rise to large construction projects.

A project to build a third set of locks for the Panama Canal was overwhelmingly approved in a referendum (with low voter turnout, however) on October 22, 2006. The official estimated cost of the project is US$5.25 billion, but the canal is of major economic importance because it provides millions of dollars of toll [[revenue]] to the national economy and provides massive employment. Transfer of control of the Canal to the Panamanian government completed in 1999, after 85 years of US control.

Copper and gold deposits are being developed by foreign investors, to the dismay of some environmental groups, as all of the projects are located within protected areas.<ref>Oancea, Dan (January 2009). [https://web.archive.org/web/20110516031334/http://magazine.mining.com/Issues/0901/MiningCentralAmerica.pdf Mining in Central America]. Magazine.mining.com, pp. 10–12.</ref>

===Panama as an IFC===
{{main|Financial centre|Panama as a tax haven}}
[[File:Countries implicated in the Panama Papers.svg|thumb|Countries with politicians, public officials or close associates implicated in the [[List of people named in the Panama Papers|Panama Papers leak]] on April 15, 2016]]

Since the early 20th century, Panama has with the revenues from the canal built the largest Regional Financial Center (IFC)<ref>{{Cite book|url=https://books.google.com/books?id=JHLvCAAAQBAJ&pg=PA9|title=International Banking and Financial Centers|last1=Park|first1=Yoon S.|last2=Essayyad|first2=Musa|date=December 6, 2012|publisher=Springer Science & Business Media|isbn=9789400925045|language=en|access-date=September 7, 2017|archive-date=February 5, 2024|archive-url=https://web.archive.org/web/20240205142031/https://books.google.com/books?id=JHLvCAAAQBAJ&pg=PA9#v=onepage&q&f=false|url-status=live}}</ref> in Central America, with consolidated assets being more than three times that of Panama's GDP. The [[banking]] sector employs more than 24,000 people directly. Financial intermediation contributed 9.3 percent of GDP.<ref name=":1">{{Cite web|url=https://www.presidencia.gob.pa/tmp/file/1503/INDEPENDENT%20EXPERT%20COMMITTEE.pdf|title=Committee of Independent Experts|publisher=Presidency of the Republic of Panama|date=November 18, 2016|archive-url=https://web.archive.org/web/20170818023452/https://www.presidencia.gob.pa/tmp/file/1503/INDEPENDENT%20EXPERT%20COMMITTEE.pdf|archive-date=August 18, 2017|url-status=dead}}</ref> Stability has been a key strength of Panama's financial sector, which has benefited from the country's favorable economic and business climate. Banking institutions report sound growth and solid financial earnings. The banking supervisory regime is largely compliant with the [[Basel III|Basel Core Principles]] for Effective Banking Supervision.<ref>{{Cite web|url=http://www.imf.org/external/NP/ofca/OFCA.aspx#P|title=Offshore Financial Centers (OFCs): IMF Staff Assessments (OFCA)|website=www.imf.org|language=en-US|access-date=June 4, 2017|archive-date=October 25, 2013|archive-url=https://web.archive.org/web/20131025215945/http://www.imf.org/external/NP/ofca/OFCA.aspx#P|url-status=live}}</ref> As a regional financial center, Panama exports some banking services, mainly to Latin America, and plays an important role in the country's economy. However, Panama still cannot compare to the position held by Hong Kong or Singapore as financial centers in Asia.

Panama still has a reputation worldwide for being a [[tax haven]] but has agreed to enhanced transparency, especially since the release in 2016 of the [[Panama Papers]]. Significant progress has been made to improve full compliance with anti-money laundering recommendations. Panama was removed from the [[Financial Action Task Force|FATF]] gray list in February 2016. The European Union also removed Panama from its tax haven blacklist in 2018.<ref>{{Cite web|title=EU Removes Panama, Seven Others, From Tax Haven Blacklist - ICIJ|date=January 23, 2018|url=https://www.icij.org/investigations/paradise-papers/eu-removes-panama-seven-others-tax-haven-black-list/|access-date=July 8, 2021|language=en-US|archive-date=January 23, 2018|archive-url=https://web.archive.org/web/20180123201849/https://www.icij.org/investigations/paradise-papers/eu-removes-panama-seven-others-tax-haven-black-list/|url-status=live}}</ref> However efforts remain to be made, and the IMF repeatedly mentions the need to strengthen financial transparency and fiscal structure.<ref name=":1" />

===Transportation===
{{main|Transport in Panama}}
[[File:CM Hubdelasamericas.jpg|thumb|[[Tocumen International Airport]], Central America's largest airport]]

Panama is home to [[Tocumen International Airport]], Central America's largest airport and the hub for [[Copa Airlines]], the flag carrier of Panama. Additionally, there are more than 20 smaller airfields in the country. (See [[list of airports in Panama]]).

Panama's roads, traffic and transportation systems are generally safe, though night driving is difficult and in some cases, restricted by local authorities. This usually occurs in [[shanty towns|informal settlements]].<ref name="travel">{{citation-attribution|{{Cite web | url=https://travel.state.gov/travel/cis_pa_tw/cis/cis_994.html |archive-url=https://web.archive.org/web/20131204211128/http://travel.state.gov/travel/cis_pa_tw/cis/cis_994.html |archive-date=December 4, 2013 |url-status = dead |date=December 4, 2013 | website= [[U.S. Department of State]] | title = Panama - County Specific Information}}}}</ref> Traffic in Panama moves on the right, and Panamanian law requires that drivers and passengers wear seat belts.<ref name=travel/> Highways are generally well-developed for a Latin American country. The [[Pan-American Highway]] travels from north to south through the country, starting at the border with Costa Rica, but ending short of Colombia at an area called the [[Darién Gap]].

The Panama City area is well served by the nearly 150 bus routes publicly operated [[Metrobus (Panama)|MiBus]] system along with the two [[rapid transit]] lines of the [[Panama Metro]]. Prior to the government operation of bus routes, Panama was served by privately operated buses called "diablo rojos" (English: red devils), which were typically retired [[school bus]]es from the United States painted in bright colours by their operators. The "diablo rojos" that remain are now mainly used in rural areas.

===Tourism===
{{main|Tourism in Panama}}
{{more citations needed section|date=November 2015}}
[[File:Insel Zapatilla Panama.jpg|thumb|Zapatilla Island, Panama]]

Tourism in Panama has maintained its growth over the past five years due to government tax and price discounts to foreign guests and retirees. These economic incentives have caused Panama to be regarded as a relatively good place to retire.<ref>{{cite web|last=Peddicord|first=Kathleen|editor-last=Brandon|editor-first=Emily|url=https://money.usnews.com/money/retirement/baby-boomers/slideshows/best-places-to-retire-in-panama|title=The 10 Best Places to Retire in Panama|work=[[U.S. News & World Report]]|date=July 28, 2022|accessdate=December 19, 2022|archive-date=December 19, 2022|archive-url=https://web.archive.org/web/20221219215348/https://money.usnews.com/money/retirement/baby-boomers/slideshows/best-places-to-retire-in-panama|url-status=live}}</ref><ref>{{cite web|last=Ascarelli|first=Silvia|url=https://www.marketwatch.com/story/i-never-expected-to-retire-to-panama-but-we-are-living-very-comfortably-on-1-200-a-month-11633001564|title=I never expected to retire to Panama — but we are living 'very comfortably' on $1,200 a month|publisher=[[MarketWatch]]|date=June 4, 2022|orig-date=September 30, 2021|accessdate=December 19, 2022|archive-date=December 19, 2022|archive-url=https://web.archive.org/web/20221219215348/https://www.marketwatch.com/story/i-never-expected-to-retire-to-panama-but-we-are-living-very-comfortably-on-1-200-a-month-11633001564|url-status=live}}</ref> Real estate developers in Panama have increased the number of tourism destinations in the past five years because of interest in these visitor incentives.<ref>[http://www.redfrogbeach.com/panama.html Redfrogbeach.com] {{webarchive|url=https://web.archive.org/web/20091013113646/http://www.redfrogbeach.com/panama.html |date=October 13, 2009 }}, [http://www.islapalenque.com/location/panama Isla Palenque] {{Webarchive|url=https://web.archive.org/web/20111030091917/http://www.islapalenque.com/location/panama |date=October 30, 2011 }}, examples</ref>

The number of tourists from Europe grew by 23.1 percent during the first nine months of 2008. According to the Tourism Authority of Panama (ATP), from January to September, 71,154 tourists from Europe entered Panama, 13,373 more than in same period the previous year. Most of the European tourists were Spaniards (14,820), followed by Italians (13,216), French (10,174) and British (8,833). There were 6997 from Germany, the most populous country in the European Union. Europe has become one of the key markets to promote Panama as a tourist destination.

In 2012, 4.585 billion US dollars entered into the Panamanian economy as a result of tourism.<ref>{{Cite web |title=Panama Tourism Statistics 1995-2025 |url=https://www.macrotrends.net/global-metrics/countries/PAN/panama/tourism-statistics |access-date=2025-01-01 |website=www.macrotrends.net}}</ref> This accounted for 11.34 percent of the [[gross national product]] of the country,<ref>{{Cite web |title=Development and importance of tourism for Panama |url=https://www.worlddata.info/america/panama/tourism.php |access-date=2025-01-01 |website=Worlddata.info |language=en}}</ref> surpassing other productive sectors.{{citation needed|date=May 2016}} The number of tourists who arrived that year was 2.2 million.<ref>{{Cite journal |last1=Agarwal |first1=Tanya |last2=Suresh |first2=Sandeep |last3=Saha |first3=Sourish |last4=S. |first4=Varun |last5=Narayan |first5=Varun|date=March 9, 2014|title=The Republic of Panama: An Economic Analysis |language=en|journal=[[Elsevier]] |at=section 1.A.ii ("Tourism")|ssrn=2406629 }}</ref>

[[File:Fortifications on the Caribbean Side of Panama Portobelo-San Lorenzo-108169.jpg|thumb|[[Fortifications on the Caribbean Side of Panama: Portobelo-San Lorenzo]] were declared a [[World Heritage Site]] by [[UNESCO]] in 1980.]]

Panama enacted Law No. 80 in 2012 to promote foreign investment in tourism. Law 80 replaced an older Law&nbsp;8 of 1994. Law&nbsp;80 provides 100 percent exemption from [[income tax]] and real estate taxes for 15 years, duty-free imports for construction materials and equipment for five years, and a [[capital gain]]s tax exemption for five years.<ref>Juan José Espino Sagel. [https://web.archive.org/web/20160304043803/http://www.pardinilaw.com/publications/news.php?newsid=271&p=3&catid=6 Panama enacts new Tourism Law: Law 80 of 2012]. pardinilaw.com</ref>

===Currency===
The Panamanian currency is officially the [[Panamanian balboa|balboa]], [[fixed exchange rate|fixed]] at a rate of 1:1 with the [[United States dollar]] since Panamanian independence in 1903. In practice, Panama is [[Dollarization|dollarized]]: U.S. dollars are [[legal tender]] and used for all paper currency, and whilst Panama has its own coinage, U.S. coins are widely used. Because of the tie to US dollars, Panama has traditionally had low [[inflation]]. According to the [[Economic Commission for Latin America and the Caribbean]], Panama's inflation in 2006 was 2.0 percent as measured by a weighted [[Consumer Price Index]].<ref>{{cite web |url=http://www.cepal.org/publicaciones/xml/2/27542/Anexo_estadistico.pdf |title=CEPAL.org |access-date=June 26, 2010 |archive-url=https://web.archive.org/web/20130824191044/http://www.cepal.org/publicaciones/xml/2/27542/Anexo_estadistico.pdf |archive-date=August 24, 2013 |url-status=dead }}</ref>

The balboa replaced the [[Colombian peso]] in 1904 after Panama's independence. Balboa banknotes were printed in 1941 by President Arnulfo Arias. They were recalled several days later, giving them the name "The Seven Day Dollars". The notes were burned by the new government, but occasionally balboa notes can be found in collections. These were the only banknotes ever issued by Panama and US notes have circulated both before and since.<ref>{{Cite book |last=Naylor |first=R. T. |url=https://www.worldcat.org/oclc/752267663 |title=Patriots and profiteers : economic warfare, embargo busting, and state-sponsored crime |date=2008 |publisher=McGill-Queen's University Press |isbn=978-0-7735-7489-2 |location=Montreal [Que.] |oclc=752267663 |access-date=December 21, 2022 |archive-date=February 5, 2024 |archive-url=https://web.archive.org/web/20240205142043/https://search.worldcat.org/title/752267663 |url-status=live }}</ref>

On April 28, 2022, Panama's lawmakers approved a bill that would legalize and regulate the use of bitcoin and other cryptocurrencies. The bill covers using cryptocurrency, trading it, tokenizing precious metals, and issuing digital securities, among other related topics. Its passing will also allow citizens to use their cryptocurrency holdings to pay taxes.<ref>{{Cite web |last=Hilaire and Moreno |date=April 28, 2022 |title=Panama passes bill to permit use of crypto assets |url=https://www.reuters.com/world/americas/panama-lawmakers-pass-bill-regulate-use-crypto-assets-2022-04-28/ |access-date=April 30, 2022 |website=Reuters.com |archive-date=April 30, 2022 |archive-url=https://web.archive.org/web/20220430032551/https://www.reuters.com/world/americas/panama-lawmakers-pass-bill-regulate-use-crypto-assets-2022-04-28/ |url-status=live }}</ref> On July 14, 2023, the Supreme Court of Justice declared the bill unenforceable.<ref>{{Cite web|title=Corte declaró inexequible proyecto de ley que regula uso de criptomonedas|trans-title=Court declared unenforceable bill regulating use of cryptocurrencies|url=https://www.laestrella.com.pa/economia/230714/corte-declaro-inexequible-proyecto-ley-regula-criptomonedas|website=La Estrella de Panamá|language=es|last=Guerrel|first=Ismael Gordón|date=July 14, 2023|access-date=July 28, 2023|archive-date=July 27, 2023|archive-url=https://web.archive.org/web/20230727170439/https://www.laestrella.com.pa/economia/230714/corte-declaro-inexequible-proyecto-ley-regula-criptomonedas|url-status=live}}</ref>

===International trade===
The high levels of Panamanian trade are in large part from the [[Colón Free Trade Zone]], the largest free trade zone in the [[Western Hemisphere]].<ref name="z459">{{cite web | title=Panama Special Economic Zones | website=International Trade Administration | date=July 8, 2021 | url=https://www.trade.gov/market-intelligence/panama-special-economic-zones#:~:text=The%20Colon%20Free%20Zone%20(CFZ,Latin%20American%20and%20Caribbean%20markets. | access-date=May 21, 2024 | archive-date=May 21, 2024 | archive-url=https://web.archive.org/web/20240521143451/https://www.trade.gov/market-intelligence/panama-special-economic-zones#:~:text=The%20Colon%20Free%20Zone%20(CFZ,Latin%20American%20and%20Caribbean%20markets. | url-status=live }}</ref> Last year the zone accounted for 92 percent of Panama's exports and 64 percent of its imports, according to an analysis of figures from the Colon zone management and estimates of Panama's trade by the [[United Nations Economic Commission for Latin America and the Caribbean]]. Panama's economy is also very much supported by the trade and export of coffee and other agricultural products.{{citation needed|date=May 2016}}

The Bilateral Investment Treaty (BIT) between the governments of the United States and Panama was signed on October 27, 1982. The treaty protects US investment and assists Panama in its efforts to develop its economy by creating conditions more favorable for US private investment and thereby strengthening the development of its private sector. The BIT was the first such treaty signed by the US in the Western Hemisphere.<ref>{{cite web |url=http://tcc.export.gov/Trade_Agreements/Bilateral_Investment_Treaties/index.asp |title=List of BITs currently in effect |publisher=Tcc.export.gov |access-date=June 26, 2010 |archive-url=https://web.archive.org/web/20100709145249/http://tcc.export.gov/Trade_Agreements/Bilateral_Investment_Treaties/index.asp |archive-date=July 9, 2010 }}</ref> A [[Panama–United States Trade Promotion Agreement]] (TPA) was signed in 2007, approved by Panama on July 11, 2007, and by US President Obama on October 21, 2011, and the agreement entered into force on October 31, 2012.<ref>{{cite web |url=http://trade.gov/mas/ian/tradeagreements/fta/tg_ian_002427.asp |title=The United States-Panama Trade Promotion Agreement (TPA) |website=Trade.gov |access-date=October 31, 2012 |archive-url=https://web.archive.org/web/20121113033819/http://trade.gov/mas/ian/tradeagreements/fta/tg_ian_002427.asp |archive-date=November 13, 2012 }}</ref>