The less favorable economic situation of Panama compared to the United States is seen from their GDP and GDP Per Capita. Thus, according to Country Economy (n.d.), the former’s corresponding indicators are $52,938 million and $12,373 million as of 2020, respectively. Meanwhile, in the United States, these numbers are $22,993,500 million and $69,726 million as of 2021 (Country Economy, n.d.). These findings confirm Panama’s comparably slower pace of economic growth.
The standards of living formulated with respect to these variables are higher in the United States. It means that its citizens have higher incomes and access to other benefits than people in Panama. This conclusion is also supported by the birth rate, which is 18.71% in Panama and 11.40% in the United States as of 2019 (Country Economy, n.d.). Hence, one might claim the gradually worsening situation of the former country.
The recent inflation rates of the two countries serve as evidence of Panama’s worse economic conditions compared to the United States. The former’s indicator in 2020 was -1.55 %, whereas in the latter case, it was 1.23 % for the same year (World Data, n.d.). This circumstance means that Panama’s economic hardships are explained by the drastic decline in prices, whereas for the United States, the situation remains favorable.
The overall economic growth rates of the countries under consideration can be seen from their general revenues. For Panama, this variable as of 2020 was -17.9% compared to the United States’ -3.4% for the same year (The World Bank, n.d.). This condition implies that the former’s chances for recovery are limited by the rapid decrease in this indicator, whereas the latter’s economic damage is less critical.
Overall, the lack of economic growth in Panama is conditional upon the combination of the examined factors. The country’s unfavorable situation is caused by the ongoing crisis complemented by consistently low living standards and deflation (Country Economy, n.d.; World Data, n.d.). These findings allow us to conclude on the multi-faceted nature of its challenges, which cannot be effectively eliminated due to the scarcity of resources and, therefore, are relatively permanent compared to the United States.
References
Country Economy. (n.d.). Country comparison Panama vs. the United States. Web.
The World Bank. (n.d.). GDP growth (annual %) – Panama, United States. Web.
World Data. (n.d.). Inflation rates in Panama. Web.