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Panama has a diversified economic structure, which can be subdivided as follows:

  • financial and general services
  • commercial trade activities
  • industry and construction
  • agriculture and mining
  • cattle husbandry, fishing and hunting 

Panama's main advantages as a business hub are its vibrant economy, consistently low inflation rate, sophisticated communications system and observance of the territorial principle.

Panama has developed a strong democracy based on the precept that authority emanates solely from the people and is exercised by the State through the three branches of Government: Legislative, Executive and Judicial, with their respective checks and balances. This in turn provides for a stable social and political environment.