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.