The economy in Panama is booming like it never has before, with the government reporting growth at an average of around 8.5 per cent each year when many other world economies have slipped into recession or are reporting minimal growth. There are many reasons that the economy is booming and that more and more multinational companies are choosing to do business in Panama.
The Panama Canal is a ship canal which was built in order to join the Atlantic and Pacific oceans. Naturally its construction had a significant and positive impact on maritime trade, which was the primary reason behind its construction. Now there is a new project being proposed by the Panama Canal Authority which would expand traffic capacity of the Panama Canal.