Panama's economy is based 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 2000-02. The government has been backing public works programs, tax reforms, new regional trade agreements, and development of tourism in order to stimulate growth.

GDP - composition by sector
Agriculture: 7%
industry: 17%
services: 76% (2001)
GDP: purchasing power parity - $17.3 billion (2002 est.)

Industries: construction, petroleum refining, brewing, cement and other construction materials, sugar milling

Agriculture - products:
Bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp

Exports - commodities: Bananas, shrimp, sugar, coffee, clothing (1999) $5.8 billion f.o.b. (2002 est.)