Economic trends
The Panamanian economy experienced, before the international financial crisis, a certain revival with the enlargement of the Canal, the development of the Colon free-trade zone, the banking and real estate sectors. The growth rate had surpassed 9% in 2008, one of the highest rates in Latin America.
The tourism had a prosperous year, with a rate growth close to 20%. About one third of the visitors, 1.4 million in total, came from Europe. The building sector has progressed more than 17% due to the beginning of the construction of a new skyscraper building and a highway joining the capital with the city of Colon. Panama is considering other development projects: enlarging the canal and the construction of a third set of locks, the construction of a new port in the Pacific and the restoration of Panama's bay.
Nevertheless, Panama was affected by the financial crisis since its economy strongly depends of the maritime transportation activity in between the Atlantic Ocean and Asia. The growth rate decreased almost one third and the unemployment rate reached over 7% in 2009. In April 2009, the OECD classified the country in the list of the "dark gray" non-cooperative fiscal paradise (tax haven), which means that Panama did not sign the twelve required agreements.
Main branches of industry
Agriculture represents about 7% to GDP and employs 15% of the active population. The main products in Panama are bananas and all other fruits, corn, sugar, rice, coffee, shrimp, construction wood, vegetables and livestock. Panama has limited natural resources: construction wood, copper and gold.
The industrial sector is moderate and contributes only 16% to GDP. The main industrial activities are based on the industrial food preparation, dairy products, sugar refinery, clothes manufacturing, petroleum products, chemicals, paper and paper products, printing, furniture manufacturing and construction.
The service sector at almost 80% of GDP is the real driver of the country's economy. It involves: finances, insurance, health and medical, transportation, telecommunications, maritime services, tourism, the trade-free zone of the two points, public administration and trade. The free-zone of Colon, established in 1953, is a center of foreign investment in the manufacturing industry.
International trade
Panama is a country that is mainly directed towards export. The Colon Free-trade Zone, which is the 2nd largest free-trade zone in the world after Hong Kong, displays the country's openness to foreign trade. The foreign trade's portion represents more than 25% to GDP.
In 2008, Panama's exports accounted for a total of 10.2 billion USD. The main exported goods were fishing and sea products, bananas, petroleum products, sugar and coffee. Panama's three main import partners are the United States, Holland and Costa Rica. The imports in 2008 represented 15 billion USD. They were mainly: electrical equipment & electronics, crude oil, foodstuffs, chemicals, vehicles and pharmaceutical products. Panama's main suppliers are the United States, Costa Rica and China.
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