The Colon Free Trade Zone

997 Words Apr 18th, 2016 4 Pages
I. Background
A. Summary
1. One of the fastest growing economies in Latin America over the past decade.
2. Panama economy has improved in the most recent years.
3. Panama is developing highly in the services sector. The services sector influences 75% of their overall GDP.
4. Panama Canal strongly influences strengthening of overall economy.
5. The Colon Free Trade Zone (CFZ) also has a strong influence on the strengthening of the overall economy.
6. The main cash crops produced in the country are bananas, corn, coffee and sugar.
B. Economic Expansion and Formation
1. 1980’s they had political instability, economy was slow and had large public debt and fiscal deficits.
a) International institutions provided assistance in exchange for structural adjustments.
b) Increased competiveness and financial stability
c) 1990’s Trade and market liberalization and fiscal reform.
2. Helped secure international investment and provide new financial sources. Improving economy.
II. Data 2013 2014 2015
Population (million) 3.9 3.9 4.0
GDP per capita (USD) 11,648 12,517 13,011
GDP (USD bn) 44.9 49.2 52.1
FDI Inflows 8.7 11.8 11.3
FDI Outflows N.A 1.6 1.9
Industrial Production (annual variation in %) 18.6 9.6 5.9
Balance of Payments Negative current account is primarily the result of deficit in goods and income balances because there was a surplus in services and transfer balances. Current Account (% of GDP) -9.8 -9.8 -6.5 Current Account Balance (USD bn)…
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