Economy of Panama

Panama economy is based on a well established and growing service sector. This sector make up three fourth of the country's GDP. the services are running the panama canal, banking, Colon Free Zone, insurance, container ports, flagship registry and tourism. The economy of Panama received a severe backlash due to a mess in the Colon Free Zone, a fall in the agricultural products, an international economic recession and the moving away of US military forces from the country. Panama economy started growing during 2004, 2006 stimulated by services which were export oriented and an increase in construction due to tax incentives.

Panama government has enforced tax reforms and social security reforms. It is also supporting regional trade and tourism industry. This was to improve the state of Panama economy. But the country is suffers from high rate of unemployment. Panama entered into a free trade agreement with USA in December 2006. this will lead to economic development and thus help to raise the standard of Panama's economy.

The GDP of Panama is $26.04 billion. The rate of unemployment is 8.8% and the rate of inflation is 2.6%. These statistics help to provide a picture of the Panaman economy. Public debt amounts to 61.3% of the total GDP. Agricultural products include bananas, rice, corn, coffee, sugarcane, vegetables etc. The major industries of Panama are construction, brewing, cement and other construction materials and sugar milling. the goods that are exported are bananas, shrimp, sugar, coffee and clothing. The export partners of Panama are US, Sweden, Spain, Netherlands and Costa Rica. Panama imports capital goods, foodstuffs, consumer goods and chemicals from US, Netherlands Antilles, Costa Rica and Japan. For more information log on to