Economy of Panama

The Canal is an important employer and source of revenue for Panama. As is the oil pipeline in western Panama that carries oil between the Atlantic and the Pacific. Panama also has a sizable merchant fleet. Farming and fishing are major activities, and Panama exports fruits, sugar, coffee, cocoa and shrimp. Compared to its GDP, Panama is one of the most heavily indebted countries in the world.

The privatization of public companies has attracted a significant quantity of foreign investment. Panama has enormous potential as a tourist destination, and the redevelopment of the formerly American-held Canal Zone may prove a very lucrative endeavor. Though unemployment remains high, Panama has the highest per-capita GNP, the strongest growth and the lowest inflation rate of all Central American countries.