Part 579

Suffrage: 18 years of age; universal and compulsory

Executive branch: chief of state and head of government: President Ernesto PEREZ BALLADARES Gonzalez Revilla (since 1 September 1994), First Vice President Tomas Gabriel ALTAMIRANO DUQUE (since 1 September 1994), Second Vice President Felipe Alejandro VIRZI Lopez (since 1 September 1994) were elected for five-year terms by popular vote; election last held 8 May 1994 (next to be held 9 May 1999); results - Ernesto PEREZ BALLADARES (PRD) 33%, Mireya MOSCOSO DE GRUBER (PA) 29%, Ruben BLADES (MPE) 17%, Ruben Dario CARLES (MOLIRENA) 16% cabinet: Cabinet was appointed by the president

Legislative branch: unicameral Legislative Assembly (Asamblea Legislativa): legislators from outlying rural districts are chosen on a plurality basis while districts located in more populous towns and cities elect multiple legislators by means of a proportion-based formula; elections last held 8 May 1994 (next to be held 9 May 1999); results - percent of vote by party NA; seats - (72 total) PRD 32, PS 4, PALA 1, PA 14, MPE 6, MOLIRENA 4, PLA 3, PRC 3, PL 2, PDC 1, UDI 1, MORENA 1

Judicial branch: Supreme Court of Justice (Corte Suprema de Justicia), nine judges appointed for 10-year terms; five superior courts; three courts of appeal

Political parties and leaders: governing coalition: Democratic Revolutionary Party (PRD), Gerardo GONZALEZ; Liberal Republican Party (PLR), Rodolfo CHIARI; Labor Party (PALA), Carlos Lopez GUEVARA other parties: Solidarity Party (PS), Samuel LEWIS GALINDO; Nationalist Republican Liberal Movement (MOLIRENA), Delia CARDENAS; Authentic Liberal Party (PLA), Arnulfo ESCALONA; Arnulfista Party (PA), Mireya MOSCOSO DE GRUBER; Christian Democratic Party (PDC), Ruben AROSEMENA; Liberal Party (PL), Roberto ALEMAN Zubieta; Papa Egoro Movement (MPE), Gloria YOUNG; Civic Renewal Party (PRC), Tomas HERRERA; National Unity Mission Party (MUN), Jose Manuel PAREDES; Independent Democratic Union (UDI), Jacinto CARDENAS; National Renovation Movement (MORENA), Pedro VALLERINO

Other political or pressure groups: National Council of Organized Workers (CONATO); National Council of Private Enterprise (CONEP); Panamanian Association of Business Executives (APEDE); National Civic Crusade; Chamber of Commerce; Panamanian Industrialists Society (SIP); Workers Confederation of the Republic of Panama (CTRP)

International organization participation: AG (associate), ECLAC, FAO, G-77, IADB, IAEA, IBRD, ICAO, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Intelsat, Interpol, IOC, IOM, ITU, LAES, LAIA (observer), NAM, OAS, OPANAL, PCA, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WFTU, WHO, WIPO, WMO, WToO, WTrO (applicant)

Diplomatic representation in US: chief of mission: Ambassador Ricardo Alberto ARIAS chancery: 2862 McGill Terrace NW, Washington, DC 20008 telephone: (202) 483-1407 consulate(s) general: Atlanta, Houston, Miami, New Orleans, New York, San Francisco, San Juan (Puerto Rico), Tampa

US diplomatic representation: chief of mission: Ambassador William John HUGHES embassy: Avenida Balboa and Calle 38, Apartado 6959, Panama City 5 mailing address: American Embassy Panama, Unit 0945, APO AA 34002 telephone: 227-1377 FAX: 227-1964

Flag: divided into four, equal rectangles; the top quadrants are white (hoist side) with a blue five-pointed star in the center and plain red, the bottom quadrants are plain blue (hoist side) and white with a red five-pointed star in the center

Economy -------

Economic overview: Because of its key geographic location, Panama's economy is service-based, heavily weighted toward banking, commerce, and tourism. The manufacturing and agriculture sectors have become inefficient under protectionist policies. After fast growth during the early 1990s, the economy has slowed down in the last two years, with GDP growth at 2.8% in 1994 and in 1995. The slowdown has been due mostly to a reduction in construction activities and stagnation in the Colon Free Zone and financial services, the three fastest growing sectors early in the decade. To counter the slowdown, the PEREZ BALLADARES administration has launched an economic reform program designed to reverse unemployment, attract foreign investment, cut back the size of government, and modernize the economy. In 1995, Panama reached an agreement in principle to reschedule its commercial debt - one of the highest in the world in per capita terms - which will allow the country to reenter international financial markets. Panama should complete all requirements to join the World Trade Organization (WTrO) in 1996.

GDP: purchasing power parity - $13.6 billion (1995 est.)

GDP real growth rate: 2.8% (1995 est.)

GDP per capita: $5,100 (1995 est.)

GDP composition by sector: agriculture: 10% industry: 16% services: 74% (1995 est.)

Inflation rate (consumer prices): 1.1% (1995)

Labor force: 979,000 (1994 est.) by occupation: government and community services 31.8%, agriculture, hunting, and fishing 26.8%, commerce, restaurants, and hotels 16.4%, manufacturing and mining 9.4%, construction 3.2%, transportation and communications 6.2%, finance, insurance, and real estate 4.3% note: shortage of skilled labor, but an oversupply of unskilled labor

Unemployment rate: 13.8% (1995)

Budget: revenues: $1.86 billion expenditures: $1.86 billion, including capital expenditures of $NA (1995)

Industries: construction, petroleum refining, brewing, cement and other construction materials, sugar milling

Industrial production growth rate: 0.4% (1995 est.)

Electricity: capacity: 960,000 kW production: 2.8 billion kWh consumption per capita: 1,047 kWh (1993)

Agriculture: bananas, rice, corn, coffee, sugarcane, vegetables; livestock; fishing (shrimp)

Illicit drugs: major cocaine transshipment point and major drug money laundering center; minor producer of coca leaf; active eradication program

Exports: $548 million (f.o.b., 1995) commodities: bananas 43%, shrimp 11%, sugar 4%, clothing 5%, coffee 2% partners: US 39%, EU, Central America and Caribbean

Imports: $2.45 billion (c.i.f., 1995) commodities: capital goods 21%, crude oil 11%, foodstuffs 9%, consumer goods, chemicals partners: US 40%, EU, Central America and Caribbean, Japan

External debt: $6.7 billion (yearend 1993 est.)