Panama: Selected Issues

Table of Contents

• Unraveling Panama’s Large Unemployment Fluctuations0F 4
• A. Introduction and Background 4
• B. Decomposition of Unemployment Growth 4
• C. Labor Market Trends 5
• D. Labor Force – The Role of Demographics and Social Norms 6
• E. Dissecting the Employment Boom of the 2000s 9
• Sectoral Employment Changes 9
• The Informal Sector 10
• The Role of Foreign Direct Investment 11
• F. Sustaining Economic Convergence 13
• References 15
• Building Resilience to Natural Disasters and Climate Change5F 16
• A. Panama’s Greenhouse Gas Emissions 16
• B. Panama’s Exposure to Climate Change Risks 16
• C. Water Challenges 19
• D. Adapting to Climate Change 20
• E. Building Resilience to Natural Disasters and Climate Change 22
• Financial Resilience 22
• F. Structural Resilience 24
• G. Post-Disaster Resilience 24
• Financial safety nets in Dollarized Economies32F 28
• A. Introduction 28
• B. Dollarized Economies 29
• C. Deposit Insurance 31
• D. Lender of Last Resort Arrangements 33
• E. Bank Failures in Dollarized Economies 36
• F. Conclusions 38
• A. Latin America 41
• B. European Microstates 42
• Andorra 42
• San Marino 44
• Monaco 45
• Vatican City 45
• Liechtenstein 45
• C. Other Europe 46
• Luxembourg 46
• Bosnia and Herzegovina 47
• Bulgaria 48
• Republic of Kosovo 48
• Montenegro 49
• D. British Crown Dependencies 50
• Guernsey 50
• Jersey 50
• Isle of Man 51
• E. British Overseas Territories 51
• Bermuda 51
• British Virgin Islands 52
• Cayman Islands 53
• Gibraltar 54
• Turks and Caicos Islands 55
• F. Asia 56
• Hong Kong SAR 56
• Macao SAR 56
• Brunei Darussalam 57
• Timor-Leste 57
• G. Pacific Island States 57
• Republic of Palau 58
• Marshall Islands 58
• Federated States of Micronesia 59
• H. Australian and New Zealand Dollar Zones 59
• Nauru 59
• Tuvalu 60
• Kiribati 60
• Cook Islands 60
• Niue 61
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