Destinations > Central America > Panama

Panama Economy

Flag of Panama
 

Panama's economy is based primarily on a well-developed services sector that accounts for nearly 80% of GDP. Services include the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, tourism, and medical and healthcare.

In October 2006, Panamanians voted in favor of a $5.25 billion Canal expansion project to construct a third set of locks, which is expected to take eight to ten years to complete. The Government of Panama expects the project to be a transforming event for Panama that will provide 7,000-9,000 direct new jobs during the peak construction period of 2009-2011 and set the tone economically for years to come. The expansion is expected to be financed through a combination of loans from multilateral institutions and current revenues.

GDP growth in 2008 was 9.2%, reflecting a slowing of the robust growth seen in 2007 of 11.5%. Although growth is expected to further slow in 2009 to between 1% and 3%, due to the global economic downturn, it is still one of the most positive growth rates in the region. Growth has been fueled by the construction sector, transportation, port and Panama Canal-related activities, and tourism. A recent United Nations report highlighted progress in poverty reduction from 2001 to 2007--overall poverty fell from 37% to 29%, and extreme poverty fell from 19% to 12%. However, Panama still has the second-most unequal income distribution in Latin America.

Panama has bilateral free trade agreements (FTAs) with Chile, El Salvador, Taiwan, Singapore, Honduras, and Costa Rica and signed an FTA with Nicaragua in January 2009. Panama is in the midst of free trade negotiations with Canada and is exploring free trade negotiations with Mexico and other Latin American countries. The U.S. and Panama signed a Trade Promotion Agreement (TPA) in June 2007; Panama ratified the agreement in July 2007. It still requires U.S. congressional approval to enter into force. This agreement will promote economic opportunity by eliminating tariffs and other barriers to trade of goods and services.


Information by U.S. Department of State


Panama Gallery

Panama Canal entrance at the Pacific side Cormorants, Gatun Lake, Panama Canal White-headed Capuchin monkey, Gatun Lake, Panama Canal Snail Kite, Gatun Lake, Panama Canal 

There are 17 pictures in our Panama gallery. Click the thumbnail to enter.


Panama Articles

Retiring in Panama

Affordable real estate, extraordinary sceneries, near perfect weather, a low cost of living, inexpensive labor force and a pensionado program are just a few causes why retiring in Panama is the most excellent. Panama is quickly becoming one of the world's retirement spot.

« read full article »





Wired Tourist Articles

Playa Del Carmen, Mexico

Playa del Carmen in Mexico may be a bed of inland deserts with a drainage basin, but it is more to people who want to take a vacation and have a good time. It is located at the lower section of an inland desert drainage basin, which sometimes fills with alkaline and briny salts that wash down by the rain water from the surrounding highlands.

« read full article »

Great Places To Stay In Barcelona

A most populous and the capital city of Catalonia Barcelona is the second largest city in Spain and the major economic center. It is one of the most lively and elegant cities in the world. The city has much more to see and offer from the historical buildings to skyscrapers, beaches, parks and museums bars, restaurant and typical Catalan dishes.

« read full article »


Home | Travel Destinations | Travel News | Travel Directory | Volcano Tours | Gallery | Site Index | Contact WiredTourist.com
Follow us on   Follow us on YouTube  YouTube   Follow us on Flickr  Flickr   Follow us on Twitter  Twitter
©2009-2010 WiredTourist.com