Economy of Panama

Economy of Panama is mainly based on service providing industry. Economy of Panama is an economy that is fully dollarized. This economy in Panama does not have any history of high inflation. Economy of Panama is mainly dependent on the banking industry, on industry of tourism and commerce.

About 80% of the national GDP of Panama is contributed by the service sector in that country. Economy of Panama is primarily based on service sector and this service sector includes the commerce by Panama Canal, the banking sector of Panama, the insurance sector in the country, the colon free trade zone, container ports, registry of flagship, medical and health industry and various other businesses.

Panama has manufacturing industries include manufacturing of aircrafts, manufacturing of aircraft spare parts, cement manufacturing, manufacturing of various drinks, manufacturing of adhesives and the textile industry, manufacturing different variety of clothing.

Panama is a country that is exporting bananas, sugar, shrimp, clothing and coffee to other countries, in the world.

There is a decline of national GDP of Panama, from the year 2007. This GDP is calculated in US dollars. The GDP growth was registered as 11.9% in 2007, which came down to 6.1% in the year 2014.

Panama has a very strong financial sector in the country. There is no National Central bank in Panama. So, there is no such institution in Panama that can act as money lender, to pull out different other banks from financial crisis, it might be facing.

Therefore, all banks in Panama run with a very conservative approach. It had an average capital adequacy ratio of 15.6%, in the year 2012. This ratio was nearly double the required minimum.

The banking sector in Panama grew by lending money to trade. It financed trade for mainly passing through the Panama Canal. Panama does not have any food production and United States is its main supplier.

Why form an offshore company in Panama?

The Republic of Panama is an important country for many foreign investors due to its tax relaxations for offshore companies. Owing to its location they have very good advantage over sea trade routes which makes this region very good for investors into import and export. Even their banks have very good option and the interests you receive from the banks are also tax free.

Form an Offshore Company in Panama

Benefits of Forming an Offshore Company in Panama

  1. 0% tax on income, capital gains, stamp duty and exchange controls
  2. Availability of Off The Shelf companies
  3. No tax on interest receive from banks
  4. 10% on gains from local assets sold
  5. Full anonymity to shareholders and directors
  6. Not required to file annual returns
  7. 0% corporation tax