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Panama holidays



Information about Panama

Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Ecuador, and Venezuela - named the Republic of Gran Colombia. When the latter dissolved in 1830, Panama remained part of Colombia. With US backing, Panama seceded from Colombia in 1903 and promptly signed a treaty with the US allowing for the construction of a canal and US sovereignty over a strip of land on either side of the structure (the Panama Canal Zone). The Panama Canal was built by the US Army Corps of Engineers between 1904 and 1914. In 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of the century. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the subsequent decades. With US help, dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the area supporting the Canal, and remaining US military bases were transferred to Panama by the end of 1999. In October 2006, Panamanians approved an ambitious plan (estimated to cost $5.3 billion) to expand the Canal. The project, which began in 2007 and could double the Canal's capacity, is expected to be completed in 2015.

Panama's economy

Panama's dollar-based economy rests primarily on a well-developed services sector that accounts for more than three-quarters of GDP. Services include operating the Panama Canal, logistics, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. Economic growth will be bolstered by the Panama Canal expansion project that began in 2007 and is estimated to be completed by 2015 at a cost of $5.3 billion - about 10-15% of current GDP. The expansion project will more than double the Canal's capacity, enabling it to accommodate ships that are too large to traverse the existing canal. The United States and China are the top users of the Canal. Panama is also constructing a metro system in Panama City, valued at $1.2 billion and scheduled to be completed by 2014. Panama's booming transportation and logistics services sectors, along with aggressive infrastructure development projects, have lead the economy to continued high growth in 2012. Foreign investment, at around 10% of GDP in both 2011 and 2012, has continued to be a source of growth. Strong economic performance has not translated into broadly shared prosperity, as Panama has the second worst income distribution in Latin America. About one-fourth of the population lives in poverty; however, from 2006 to 2012 poverty was reduced by 10 percentage points, while unemployment dropped from 12% to 4.5% of the labor force in 2013. The US-Panama Trade Promotion Agreement was approved by Congress and signed into law in October 2011, and entered into force in October 2012. Panama also achieved removal from the Organization of Economic Development's gray-list of tax havens by signing various double taxation treaties with other nations.

Issues in Panama

organized illegal narcotics operations in Colombia operate within the remote border region with Panama Refugees and internally displaced persons: refugees (country of origin): 15,723 (Colombia) (2012) Illicit drugs: major cocaine transshipment point and primary money-laundering center for narcotics revenue; money-laundering activity is especially heavy in the Colon Free Zone; offshore financial center; negligible signs of coca cultivation; monitoring of financial transactions is improving; official corruption remains a major problem



Prices in Panama
Meal in inexpensive restaurant5.55 USD
3-course meal in restaurant (for 2)30.56 USD
McDonalds meal5.17 USD
Local beer (0.5 draft)1.1 USD
Foreign beer (0.33 bottle) 2.97 USD
Cappuccino2.32 USD
Pepsi/Coke (0.33 bottle)1.18 USD
Water (0.33 bottle)1.08 USD
Milk (1l)1.33 USD
Fresh bread (500g)2.31 USD
White Rice (1kg)1.38 USD
Eggs (12) 2.4 USD
Local Cheese (1kg) 7.59 USD
Chicken Breast (1kg) 8.16 USD
Apples (1kg) 3.88 USD
Oranges (1kg) 1.26 USD
Tomato (1kg) 2.95 USD
Potato (1kg) 1.95 USD
Lettuce (1 head) 1.37 USD
Water (1.5l)1.53 USD
Bottle of Wine (Mid-Range) 11.1 USD
Domestic Beer (0.5 bottle)0.68 USD
Foreign beer (0.33 bottle) 1.42 USD
Cigarettes4.95 USD
One way local bus ticket0.28 USD
Monthly pass for bus19.53 USD
Taxi start2.08 USD
Taxi 1km1.39 USD
Taxi 1hour waiting24.25 USD
Gasoline (1 liter) 0.91 USD
Utilities for a "normal" apartment68.5 USD
Tennis Court Rent (1 Hour on Weekend) 9.41 USD
Apartment (1 bedroom) Outside of Centre 572.87 USD
Apartment (3 bedrooms) Outside of Centre 889.34 USD

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