onist policies. After fast
growth during the early 1990s, the economy has slowed down in the
last two years, with GDP growth at 2.8% in 1994 and in 1995. The
slowdown has been due mostly to a reduction in construction
activities and stagnation in the Colon Free Zone and financial
services, the three fastest growing sectors early in the decade. To
counter the slowdown, the PEREZ BALLADARES administration has
launched an economic reform program designed to reverse
unemployment, attract foreign investment, cut back the size of
government, and modernize the economy. In 1995, Panama reached an
agreement in principle to reschedule its commercial debt - one of
the highest in the world in per capita terms - which will allow the
country to reenter international financial markets. Panama should
complete all requirements to join the World Trade Organization
(WTrO) in 1996.

GDP: purchasing power parity - $13.6 billion (1995 est.)

GDP real growth rate: 2.8% (1995 est.)

GDP per capita: $5,100 (1995 est.)

GDP composition by sector:
agriculture: 10%
industry: 16%
services: 74% (1995 est.)

Inflation rate (consumer prices): 1.1% (1995)

Labor force: 979,000 (1994 est.)
by occupation: government and community services 31.8%, agriculture,
hunting, and fishing 26.8%, commerce, restaurants, and hotels 16.4%,
manufacturing and mining 9.4%, construction 3.2%, transportation and
communications 6.2%, finance, insurance, and real estate 4.3%
note: shortage of skilled labor, but an oversupply of unskilled labor

Unemployment rate: 13.8% (1995)

Budget:
revenues: $1.86 billion
expenditures: $1.86 billion, including capital expenditures of $NA
(1995)

Industries: construction, petroleum refining, brewing, cement and
other construction materials, sugar milling

Industrial production growth rate: 0.4% (1995 est.)

Electricity:
capacity: 960,000 kW
production: 2.8 billion kWh
consumption per capita: 1,047 kWh (1993)

Agriculture: bananas, rice, corn, coffee, sugarcane, vegetables;
livestock; fishing (shrimp)

Illicit drugs: major cocaine transshipment point and major drug
money laundering center; minor producer of coca leaf; active
eradication program

Exports: $548 million (f.o.b., 1995)
commodities: bananas 43%, shrimp 11%, sugar 4%, clothing 5%, coffee
2%
partners: US 39%, EU, Central America and Caribbean

Imports: $2.45 billion (c.i.f., 1995)