Indicators of economy in Panama

Impact of the COVID-19 pandemic

The consequences of the COVID pandemic in 2020 were considerable in Panama. Overall, gross domestic product in 2020 fell from 66.98 billion US dollars to 53.98 billion US dollars. With a large drop of 19.42 percent, the economy in Panama has struggled significantly more than other countries. The tourism sector alone slumped by around 74 percent. The unemployment rate rose from 4.7 to 12.9 percent. The inflation rate fell from -0.4 percent previously to -1.6 percent by the end of 2020.

In 2021, there was already a recovery and the gross domestic product increased to 63.61 billion US dollars (=95.0% of 2019).

Income and purchasing power

The average monthly income in Panama is 1,160 US Dollar per capita. In the USA, the figure is 5,911 US Dollar. However, the prices of consumer goods are also around 53.8 percent lower than in the USA. If you compare income and price levels, the result is a more expensive life in Panama than in the United States. The bottom line is that the costs do not offset the lower income, and you get about 57.5 percent less.

However, it is also important to remember that this is a purely statistical model. Both the labor output and the type and quality of the goods received always correspond to the national average on both sides of the equation - so they do not necessarily have to match. Here you can also find an international comparison of cost of living and purchasing power.

Unemployment rates in percentages 1991 - 2021

Economic performance 2021

In the Global Innovation Index, Panama ranked 81st in 2022 with 25.7 points. The index is calculated annually by the World Intellectual Property Organization (WIPO) and most recently included 132 countries. The top country was Switzerland with 64.6 points.

Development of gross domestic product in billions of USD 1960 - 2021