That dollar amount results from a 45.9% advance compared to $11.5 billion five years earlier in 2019.
Year over year, Panamanian exports rose in value by 8.2% from $15.5 billion starting in 2022.
Panama’s Largest Trade Partners
The latest available country-specific data shows that 55.3% of products exported from Panama was bought by importers in: mainland China (8.4% of the Panamanian total), Costa Rica (6.4%), Venezuela (5.9%), United States of America (5.6%), Colombia (4.34%), Guatemala (4.32%), Honduras (4.1%), Dominican Republic (4%), Spain (3.43%), El Salvador (3.35%), Ecuador (2.8%) and Japan (2.7%).
From a continental perspective, 67% of Panama’s exports by value was delivered to Latin America excluding Mexico but including the Caribbean while 17% was sold to importers in Asia. Panama shipped another 7.9% worth of goods to North America with 7.8% going to Europe.
Tinier percentages went to Africa (0.2%) and Oceania’s Australia and New Zealand (0.1%).
Given Panama’s population of 4.45 million people, its total $16.7 billion in 2023 exports translates to roughly $3,750 for every resident in the Central American nation. That per-capita metric exceeds the average $3,500 for 2022.
Panama’s Top 10 Exports
The following export product groups represent the highest dollar value in Panamanian global shipments during 2023. Also shown is the percentage share each export category represents in terms of overall exports from Panama.
- Ores, slag, ash: US$2.47 billion (14.8% of total exports)
- Organic chemicals: $2.46 billion (14.7%)
- Pharmaceuticals: $2.1 billion (12.8%)
- Electrical machinery, equipment: $1.6 billion (9.6%)
- Machinery including computers: $1.2 billion (6.9%)
- Footwear: $930.1 million (5.6%)
- Clothing, accessories (not knit or crochet): $831.7 million (5%)
- Perfumes, cosmetics: $694.5 million (4.1%)
- Knit or crochet clothing, accessories: $561 million (3.4%)
- Beverages, spirits, vinegar: $557.8 million (3.3%)
Panama’s top 10 exported product categories generated four-fifths (80.1%) of the overall value of its global shipments.
Organic chemicals represent the fastest grower among the top 10 export categories, up by 157.5% from 2022 to 2023.
In second place for improving export sales was perfumes and cosmetics via a 20.8% gain.
Panama’s shipments of pharmaceuticals posted the third-fastest gain in value, up by 9.5%.
The leading decliner among Panama’s top 10 export categories was ores, slag and ash thanks to a -11.7% year-over-year drop. That product group was pulled down by lower international sales of Panamanian copper ores and concentrates.
The above listed product categories are at the 2-digit Harmonized Tariff System (HTS) code level.
Drilling down to the more detailed 4-digit HTS codes, Panama’s most valuable exported products were copper ores and concentrates (14.8% of the Panamanian total), heterocyclics and nucleic acids (12.6%), medication mixes in dosage (12.2%), phone devices including smartphones (3.6%), alcoholic beverages including spirits and liqueurs (3%), rubber or plastic footwear (2.4%), textile footwear (2.1%), unknitted and non-crocheted women’s clothing (1.5%), then computers including optical readers (1.3%).
Products Generating Panama’s Largest Trade Surpluses
The following types of Panamanian product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Ores, slag, ash: US$2.5 billion (Down by -11.7% since 2022)
- Fruits, nuts: $95.4 million (Up by 22.6%)
- Fish: $87.3 million (Up by 13.7%)
- Copper: $16.2 million (Up by 14525.2%)
- Photo/cinematographic goods: $8.1 million (Up by 32.3%)
- Lead: $6.1 million (Up by 37.7%)
- Raw hides, skins not furskins, leather: $2.6 million (Down by -38.4%)
- Miscellaneous animal-origin products: $2 million (Down by -29.8%)
- Woodpulp: $592,000 (Up by 41%)
- Other base metals: $464,000 (Reversing a -$1.3 million deficit)
Panama has highly positive net exports in the international trade of copper ores and concentrates. In turn, these cashflows indicate Panama’s strong competitive advantages under the ores, slag and ash product category.
Products Causing Panama’s Worst Trade Deficits
Overall, Panama incurred a -US$17.5 billion product trade deficit during 2023, expanding by 27.3% from -$13.8 billion in red ink one year earlier in 2022.
Below are exports from Panama that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Panama’s goods trail Panamanian importer spending on foreign products.
- Organic chemicals: -US$7 billion (Up by 208.2% since 2022)
- Mineral fuels including oil: -$2.9 billion (Down by -18.7%)
- Electrical machinery, equipment: -$1.5 billion (Up by 86.3%)
- Machinery including computers: -$1.4 billion (Up by 1.5%)
- Vehicles: -$1.2 billion (Up by 12.2%)
- Articles of iron or steel: -$472.5 million (Up by 2.0%)
- Plastics, plastic articles: -$457.3 million (Down by -11.0%)
- Optical, technical, medical apparatus: -$317.8 million (Up by 12.7%)
- Cereals: -$310.9 million (Up by 0.5%)
- Miscellaneous food preparations: -$292.1 million (Up by 9.1%)
Panama has highly negative net exports and therefore deep international trade deficits under the organic chemicals and mineral fuels including oil product categories.
Panamanian Export Companies
Not one Panamanian corporation ranks among Forbes Global 2000.
Wikipedia identifies some international trade-related entities conducting business in Panama. Selected examples are shown below:
- Bering Motors (automobiles)
- DHL Aero Expreso (cargo airliner)
A considerable number of Panamanian exporters list their products on the global sales portal Alibaba.com. The following are selected examples; each firm’s principal products are shown within parentheses.
- CIBO SA (sugar)
- Gainway Metal Recycling Corp (scrap metal)
- Grupo Prado E Hijos (cargo ships)
- Interbahn Global Ltd (teak logs)
- Kwinana Tech International (computers, accessories)
- Live Well Pharmaceuticals (drugs, medicines)
- PILSA (rum)
- Salva-Mar SA (fresh fish)
In macroeconomic terms, Panama’s total exported goods represent 8.8% of its overall Gross Domestic Product for 2023 ($190.3 billion valued in Purchasing Power Parity US dollars). That 8.8% for exports to overall GDP in PPP for 2023 lags the 9.4% for 2022. Those percentages suggest a decreasing reliance on products sold on international markets for Panama’s total economic performance, albeit based on a short timeframe.
Another key indicator of a country’s economic performance is its unemployment rate. Panama’s unemployment rate averaged 8% for 2023, down from an average 8.8% in 2022 according to International Monetary Fund statistics.
Panama’s capital is Panama City.
See also Costa Rica’s Top 10 Exports, Guatemala’s Top Trading Partners, Honduras Top 10 Imports, Colombia’s Top Trading Partners and Top US Trading Partners
Research Sources:
Central Intelligence Agency, The World Factbook Central America and Caribbean: Panama. Accessed on August 21, 2024
Forbes 2023 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on August 21, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on August 21, 2024
International Trade Centre, Trade Map. Accessed on August 21, 2024
Investopedia, Net Exports Definition. Accessed on August 21, 2024
Wikimedia Commons, Flag of Panama. Accessed on August 21, 2024
Wikipedia, Panama. Accessed on August 21, 2024
Wikipedia, List of Companies of Panama. Accessed on August 21, 2024