| Panama has a strategic location in Central America. It | | | | products. |
| relies in the isthmus which means that is borders the | | | | Panama has coped up its economy due to the fact |
| North and South part of America. It has diverse | | | | that the population of Panama has contributed its |
| opportunities for economic development as it serves | | | | government reforms. At this time, the economy of |
| international trade, commerce and shipping. However, | | | | Panama has been more open and accessible to |
| its economy is mainly into service industry which | | | | foreign investments. The increase in foreign investment |
| comprises 80% percent of the Gross Domestic | | | | which contributed growth to economy of Panama |
| Products. The economy of Panama in the service | | | | paved way for more development in Panama as seen |
| industries includes finance, health, insurance, | | | | in the recent years. The result is steady economic |
| telecommunications, transportation, banking, maritime | | | | growth. One of the targets of Panama foreign |
| service and Canal, logistics due the Colon Free Zone | | | | investment is the real estate that draws investors |
| and the strategic ports, tourism and general | | | | from America, Asia, and Europe. As soon as the real |
| commerce. | | | | estate boom started in Panama, the prices of Panama |
| The economy of Panama has been successfully | | | | properties and the value had increased up. However, |
| progressing the recent years. It is more into banking, | | | | the demands continued to rise and more property |
| commerce, trade, and tourism. Its economic activities | | | | constructions and project developments are build in |
| are focused on the Panama Canal where international | | | | different provinces and neighborhoods in Panama. As |
| trade passes through it. The canal turnover from the | | | | the economy of Panama continued to progress, |
| US administration and the US military bases was one | | | | starting the expansion of the Panama canal. When this |
| of the pioneers of the rise of new projects in Panama | | | | project is culminated, more investments are expected |
| and the start-up of economic development. Currently | | | | in Panama. |
| the Panama Canal is under the Panamanian | | | | Growth in GDP has been remarkable in the last year |
| government administration developing a high quality | | | | compared to past years. So far, Panama becomes |
| standard being one of the most transit canals in the | | | | the third largest GDP per capita among other countries |
| maritime industry, the government of Panama has | | | | in Central America. The growth in GDP was mostly on |
| improved several public programs, reforms on taxes, | | | | the sectors of transportation and telecommunications. |
| and trade agreement domestically and internationally | | | | GDP as of 2006 was 15 dollars billion and the annual |
| that contributed to another phase of growth. Aside | | | | growth from 2005 was 8 percent. The per capita of |
| from the service industries that has great contribution | | | | GDP in 2006 was four thousand dollars. |
| to economy of Panama, Panama is also into | | | | In conclusion, the road to the progress of the economy |
| agricultural and industry but comprises only a small | | | | of Panama has not been easy. Just like other |
| percentage of the GDP. Agriculture focuses on | | | | countries that pass several stages of economic |
| banana, watermelon, sugar, corn, timber, coffee, | | | | development, Panama has not been exempted. The |
| livestock, vegetables and tuna exports while industry | | | | combination of the industriousness of its population and |
| comprise aircraft manufacturing, cements, automobiles, | | | | the government programs had made it possible for |
| drinks, adhesives and textiles among many other | | | | Panama to rise above economic difficulties. |