Panama's economy is a global trade and financial hub, driven by the Panama Canal, which generates significant revenue through shipping and logistics. The services sector, including banking, insurance, and real estate, dominates GDP, supported by a dollarized economy and tax incentives. Tourism, fueled by Panama City's modernity and natural attractions, is growing. Agriculture, including bananas and coffee, plays a smaller role. Free trade zones enhance exports. Despite strong growth, income inequality and rural poverty persist. Panama's strategic location and infrastructure investments attract foreign investment, though challenges like corruption and regulatory transparency remain barriers to broader economic development.
World Bank Data. 2000-2024. Last updated Oct 2025. Refer to the latest year-over-year Panama GDP statistics.