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Economy Intro Profile for Panama
Flag of Panama Panama
Population: 3,000,463 (July 2004 est.)
Capital: Panama
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Backgrounds: Panama Economy Intro

Panama's dollarised economy rests primarily on a well-developed services sector that accounts for three-fourths of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump in Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth in 2000-03. The government has been backing public works programs, tax reforms, new regional trade agreements, and development of tourism in order to stimulate growth. Unemployment remains at an unacceptably high level.

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Data Source: Central Intelligence Agency 2004 World Factbook