  Since the early 16th century, Panama's geographic location gave the country a comparative advantage. From the earliest Spanish times, gold and silver from Peru would be transported to Spain via the Panama isthmus. Ports on each coast and a trail between them handled much of Spain's colonial trade to the benefit of the inhabitants of the port cities. The country has always been dependent on world commerce for its prosperity and imports. Agriculture received little attention until the 20th century, and by the 1980s had for most of the population barely developed beyond indigenous Indian techniques. Industry developed slowly because the flow of goods from Europe and later from North America created a disincentive for local production.  In the 1970s and 1980s, Panama's growth fluctuated with the vagaries of the world economy. After 1973, economic expansion slowed considerably as a result of a number of international and domestic factors. Real GDP growth averaged 3.5\% a year between 1973 and 1979. In the early 1980s, the economy rebounded with GDP growth rates of 15.4\% in 1980, 4.2\% in 1981, and 5.6\% in 1982. The acute recession in Latin America after 1982, however, wreaked havoc on Panama's economy. GDP growth in 1983 was a mere 0.4\%, but -0.4\% in 1984. In May 2009, Ricardo Martinelli was elected president, and promised to promote free trade, establish a metro system at an approximate cost of $1.0 billion, reform the health care system, and complete the expansion plan for the Panama Canal. Martinelli also emphasized the importance of transforming Panama into a “safer, modern and supportive” nation devoted to improving the living conditions of its population through efficient and accountable governance   
This article describes the economic history of Panama. Early history Since the early 16th century, Panama's geographic location gave the country a comparative advantage. From the earliest Spanish times, gold and silver from Peru would be transported to Spain via the Panama isthmus. Ports on each coast and a trail between them handled much of Spain's colonial trade to the benefit of the inhabitants of the port cities. The country has always been dependent on world commerce for its prosperity and imports. Agriculture received little attention until the 20th century, and by the 1980s had for most of the population barely developed beyond indigenous Indian techniques. Industry developed slowly because the flow of goods from Europe and later from North America created a disincentive for local production. 1970s-present In the 1970s and 1980s, Panama's growth fluctuated with the vagaries of the world economy. After 1973, economic expansion slowed considerably as a result of a number of international and domestic factors. Real GDP growth averaged 3.5\% a year between 1973 and 1979. In the early 1980s, the economy rebounded with GDP growth rates of 15.4\% in 1980, 4.2\% in 1981, and 5.6\% in 1982. The acute recession in Latin America after 1982, however, wreaked havoc on Panama's economy. GDP growth in 1983 was a mere 0.4\%, but -0.4\% in 1984. In May 2009, Ricardo Martinelli was elected president, and promised to promote free trade, establish a metro system at an approximate cost of $1.0 billion, reform the health care system, and complete the expansion plan for the Panama Canal. Martinelli also emphasized the importance of transforming Panama into a “safer, modern and supportive” nation devoted to improving the living conditions of its population through efficient and accountable governance . References Category:History of Panama Category
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This article describes the economic history of Panama.
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Early history
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1970s-present
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References
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Category:History of Panama Category