Only about a quarter of the land is used for agriculture. On the upland savannas cattle are grazed and subsistence crops such as rice, sugarcane, cocoa, and coffee are grown. Bananas are grown on the Pacific coast. The country has various light industries. The Col n Free Zone, established in 1953, is a center for foreign investment in manufacturing.
Bananas are the leading export, followed by shrimp and fish products, sugar, clothing, and coffee.
Manufactured goods, raw materials, and foodstuffs are imported. Much of the trade is with the United States. In recent years the country has become a nexus for the shipment of illegal drugs from Colombia to the United States, as well as a center for drug-related financial transactions. During the 1990s Panama continued to struggle to stabilize and develop its economy. Government Panama is a constitutional republic.