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