Panama’s economy is small, very much open, highly diversified, dollar driven and highly competitive by regional standards. It has the 3rd highest GDP per capita in Latin America and the economy of Panama is largely dependent on the mining, agriculture, and timber industries. The country has one of the largest copper ore reserves in the world, as well as large reserves of gold, manganese, and iron. Hydropower is also a major natural resource in Panama as it supplies 60% of all electricity in the country.
It’s economy is pegged to the US dollar and the service industry is the biggest in the country, accounting for about 65% of Panama’s GDP and employing 67.5% of the workforce. Transport is the most important sector of the service industry, as the Panama Canal is the government’s chief revenue source. Other well-developed sectors are logistics, banking, the Colón Free Zone (a focal point for foreign investment in the manufacturing industry), insurance, container ports, boat registrations and tourism.
Panama is also an important country for off-shore banking services, but it’s rating of 86/190 for Ease of Doing Business means bureaucracy requires careful navigation.
AUXADI can become your ideal investment partner in Panama. From our office, located in Panama City, we offer a One Stop Shop value added Outsourcing services in the areas of Accounting and Reporting, Tax Compliance, Payroll Management and Representation services, among others.