Thanks to being one of the most crucial shipping transit points on earth, Panama’s economy does indeed rely heavily on the Panama Canal and has done since its construction. The explosion in trading, finances and taxes has created a banking industry that surrounds merchant shipping, an industry that has gained notoriety in recent times.
Panama has developed into a tax haven, with offshore assets often registered, stored or sent through Panama. This makes investing in Panama highly popular and lucrative, and many payroll ventures in Panama are to do with finance. However, the trickle-down from finance doesn’t spread to the average Panamanian, with low overall wages, limited development and informal working practices still widespread outside the banking offices.