The Economy of Panama

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The Economy of Panama

• -Tim Williams

http//blogs.timesunion.com/capitol/wp-content/upl
oads/2008/05/panama-city.jpg
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Questions

• What sector of the economy is the largest in
  terms of GDP? (examples manufacturing,
  agriculture)
• What is the exchange rate from the Panama balboa
  to the US dollar?
• What is the purpose of the Colón Free Trade Zone?
• What brings the majority of the tourists to
  Panama?
• How populous is panama city compared to the
  entire country?

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Topics

• Background
• Sectors of the workforce
• Businesses in Panama
• Businesss effect on the environment

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Currency

• The balboa
• It is fixed with the US dollar (such that 1
  balboa 1 US dollar)
• The US dollar is commonly used and accepted

http//aes.iupui.edu/rwise/banknotes/panama/Panama
P22a-1Balboa-1941_f.jpg
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statistics

• 40 of the population of Panama lives in Panama
  City
• unemployment rate of 6.4
• poverty rate is 28.6
• the second fastest growing economy in Latin
  America in 2008, after Peru
• Historically low inflation (2 in 2006)

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Topics

• Background
• Sectors of the workforce
• Businesses in Panama
• Businesss effect on the environment

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Major Sectors of the Economy

• Service
• Agriculture
• Tourism
• Industry/manufacturing

http//static.flickr.com/48/111666363_41f8dfd265_b
.jpg
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A service-based Economy

• The service sector accounts for around 80 of the
  national GDP.

http//www.panama1.com/imagenes/Bankctr1.jpg
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Services

• the Panama Canal
• Banking
• the Colón Free Trade Zone
• Insurance
• container ports
• flagship registry
• medical and health
• other business.

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The Canal

• Adequately covered by others

http//upload.wikimedia.org/wikipedia/commons/f/f7
/Panama_Canal_Gatun_Locks.jpg
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The Colón Free Trade Zone

• high levels of trade in the country
• largest free trade zone in the Western Hemisphere

• accounted for 92 of Panama's exports and 64 of
  its imports

http//graphics8.nytimes.com/images/2007/12/17/wor
ld/17freezone.xlarge1.jpg
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The Colón Free Trade Zone

• Businesses can operate there tax-free
• Minimal regulation on trade.
• Designed to boost economic growth
• considered the "Trading Showcase" of Central and
  South America

http//www.embassyofpanamainjapan.org/images/colon
gif.gif
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Major parts of the Economy

• Service
• Agriculture
• Tourism
• Industry

http//farm1.static.flickr.com/82/281758514_dd9293
bb40.jpg?v0
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Agriculture

• Only 7 of the GDP in 2001

http//farm1.static.flickr.com/88/281766193_1a7407
0469.jpg?v0
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Major parts of the Economy

• Service
• Agriculture
• Tourism
• Industry

http//www.focuspublicationsint.com/New_Site/Visit
or13-7/Img13-7/pag2-7517.jpg
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Tourism

• An attractive tourist spot
• 2 oceans
• white sand beaches
• cloud or rain forest
• Mountains
• wide range of cultural experiences

http//destinationpanama.files.wordpress.com/2008/
08/wedding-service-at-taboga-beachside-park.jpg?w
300h225
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Tourism

• The biggest part of Panama's tourism economy
  comes from business travelers
• There are numerous business conventions.

http//www.thepanamanews.com/pn/v_07/issue_18/imag
es/travel_01_05.jpg
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Major parts of the Economy

• Service
• Agriculture
• Tourism
• Industry/manufacturing

http//www.oceaneering.com/uploadedImages/Subsea_P
roducts/Multiflex/MultiflexPages/facilities/Panama
_02.jpg
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Industry

• manufacturing of aircraft spare parts
• cements
• Drinks
• Adhesives
• automobiles
• Textiles
• handmade artisan
• creation of Bush planes
• others

http//www.ventechequipment.com/merichem4.gif
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Topics

• Background
• Sectors of the workforce
• Businesses in Panama
• Businesss effect on the environment

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Multinational Corporations in Panama

• Over 100 multinational have offices in Pamama
• Coca Cola, FedEx, Continental Airlines,
  PriceSmart, Citibank, ExxonMobil, ChevronTexaco,
  Radisson, 3M, AES, Avaya, Caterpillar, Dell (USA)
• Telefonica (Spain)
• Sumitomo, Itochu, Mitsui, Sony, Matsushita
  (Japan)
• HSBC, Cable Wireless (UK)
• Petaquilla Minerals, Teck, Inmet (Canada)
• Samsung (Korea)

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Restaurant Chains

• Many international restaurant chains are in
  Panama including Bennigans, Fridays, Hooters,
  etc.
• Some Local Restaurants
• Pizzeria Italia (the best pizza on earth,
  according to one source)
• Napoli
• Athens
• Gauchos
• Bolero
• Viejo Pipo
• Sushi Itto
• Rodizzio's

• Eurasia
• Creppes Waffles
• Peperoccini di Mare
• La Posta, Barcos Café
• Ozone Café
• Greenhouse

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Topics

• Background
• Sectors of the workforce
• Businesses in Panama
• Businesss effect on the environment

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Effects of the Canal

• Provides a corridor for the migration of species
  between the Atlantic and Pacific Oceans.
• 8 species have made the "jump" over the
  Continental Divide
• So far there have been no measurable ill-effects
• But if the canal becomes a sea-water bridge it
  would be far easier for a wider range of marine
  species to cross the canal from ocean to ocean.

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Effects of Agricultural

• Habitat and forest destruction
• Land degradation and erosion
• Agricultural runoff
• Affects fish and waterways
• Pesticide use

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Other effects

• Air pollution
• In the city (largely from vehicular emissions)
• most concentrated during the rainy months of May
  through mid-December

Smog
http//www.unites.uqam.ca/neuro/design/Assets/imag
es/Panama20City.jpg
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Other effects

• Mining
• Acidification
• Chemical Spills

Runoff from a strip mine
http//www.thepanamanews.com/pn/v_13/issue_22/imag
es/Petaquilla_runoff.jpg
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Questions

• What sector of the economy is the largest in
  terms of GDP? (examples manufacturing,
  agriculture)
• What is the exchange rate from the Panama balboa
  to the US dollar?
• What is the purpose of the Colón Free Trade Zone?
• What brings the majority of the tourists to
  Panama?
• How populous is panama city compared to the
  entire country?

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Questions

• What sector of the economy is the largest in
  terms of GDP? Service
• What is the exchange rate from the Panama balboa
  to the US dollar?
• What is the purpose of the Colón Free Trade Zone?
• What brings the majority of the tourists to
  Panama?
• How populous is panama city compared to the
  entire country?

30
Questions

• What sector of the economy is the largest in
  terms of GDP? Service
• What is the exchange rate from the Panama balboa
  to the US dollar? 1.000
• What is the purpose of the Colón Free Trade Zone?
• What brings the majority of the tourists to
  Panama?
• How populous is panama city compared to the
  entire country?

31
Questions

• What sector of the economy is the largest in
  terms of GDP? Service
• What is the exchange rate from the Panama balboa
  to the US dollar? 1.000
• What is the purpose of the Colón Free Trade
  Zone? to boost economic growth
• What brings the majority of the tourists to
  Panama?
• How populous is panama city compared to the
  entire country?

32
Questions

• What sector of the economy is the largest in
  terms of GDP? Service
• What is the exchange rate from the Panama balboa
  to the US dollar? 1.000
• What is the purpose of the Colón Free Trade
  Zone? to boost economic growth
• What brings the majority of the tourists to
  Panama? Business meetings
• How populous is panama city compared to the
  entire country?

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Questions

• What sector of the economy is the largest in
  terms of GDP? Service
• What is the exchange rate from the Panama balboa
  to the US dollar? 1.000
• What is the purpose of the Colón Free Trade
  Zone? To boost economic growth
• What brings the majority of the tourists to
  Panama? Business meetings
• How populous is panama city compared to the
  entire country? About 40 as populous

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Sources

• http//www.thepanamanews.com/pn/v_07/issue_18/trav
  el_01.html
• Crossing Currents Continuity and Change in Latin
  America
• http//en.wikipedia.org/wiki/Economy_of_Panama
• http//www.thepanamanews.com/pn/v_07/issue_12/scie
  nce_01.html
• http//indexmundi.com/panama/environment_current_i
  ssues.html
• http//en.wikipedia.org/wiki/Panama
• http//www.guardian.co.uk/environment/2007/feb/28/
  water.conservationandendangeredspecies
• http//www.businesspanama.com/investing/opportunit
  ies/multinational.php
• http//www.panamasurftours.com/index.php?actionpa
  ge_displayPageID20
• http//finance.yahoo.com/currency/convert?amt1fr
  omPABtoUSDsubmitConvert