Economy « EMBASSY OF PANAMA IN JAPAN

Economy

TradeInvestment Opportunities

For basic facts about Panamanian economy, please click here.

Panama is one of the fastest growing economies of Latin America and the Caribbean.

In 2014, the economy grew at a rate of 6.2% overtaking the region’s average of 2.5%, and it is expected to be 6.1% in 2015.

Although the world economy has been shown a slow recovery from the 2009 Lehman shock, the Panamanian economy has kept a healthy growth trend due to the heavy investment in public works such as the expansion of the Panama Canal, the operation of the Line 1 of Metro, construction of the Line 2 of Metro, redevelopment of roads and avenues in Panama city, the expansion of Tocumen International airport and the construction of the South Terminal, the building of a new international airport in the central provinces of Panama, the widening of roads in the countryside, among others infrastructure projects.

The Panamanian economy is based on a well-developed service sector, mainly in the areas of international trade, business services, logistics and finance. In 2015, the services sector is estimated to account for 77% of our gross domestic product.

As for the manufacturing sector, it represented 20% of the economy, while the agricultural sector amounted to 3%.

Panama has an export-oriented model of development, based on a competitive social market economy, where the government performs as regulator and facilitator of economic activities, eliminating distortions and providing incentives for private foreign investment.

In fact, Panama enjoys a number of laws aimed at creating a business environment with competitive taxation for foreign corporations, as well as flexible labor and immigration regimes.

Indeed, a dramatic change has taken place in the direction and structure of our economy in the past 23 years after the re-establishment of democracy, and particularly with a strong acceleration in economic growth from 2000 when the Panama Canal was transferred to Panamanian jurisdiction, incorporating Canal activities to the development of the national economy .

Other country indicators

Size of Economy (GDP in US$ million)

 

Economy Growth (Annual Percent Change in GDP)



GDP per Capita (in US$)

Exports & Imports (in US$ million)

Exports & Imports (in US$ million)

Sources :
Contraloría General de la República, Statistics and Census Direction(Only Spanish)
Contraloría General de la República, Comercio Exterior(Only Spanish)
The World Bank
The World Factbook