Panama

The strengthening of domestic demand in the wake of an expansionary fiscal policy triggered a recovery in the Panamanian economy in 2003, boosting gross domestic product (GDP) by 4.1 %. In addition to the increase in domestic demand, there was a gradual improvement in the external environment that became more pronounced in the first half of 2004. The upturn helped to ease the unemployment rate slightly, in a context of macroeconomic stability. Inflation remained low (1.7%), in keeping with traditional patterns, and the non-financial public-sector deficit stayed at the preceding year’s level (1.9%). The external deficit widened to 3.2% of GDP, owing to a larger outflow of profits and bank dividends.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions