Abstract
The world economy faced the most severe financial crisis since the Great Depression of the last century. This study examines the impact of the current crisis on Panama’s economy as is illustrated with relevant macroeconomic indicators of the last 4 years. It was discovered that the crisis caused some negative effects in the economy, but not as much as other countries. The two major economic supports: the Panama Canal, Colon Free Trade Zone, and to a lesser degree the Banking sector which offers their service through the region and worldwide remained positive and relatively stable during our period under analysis, which was from 2007 to 2010. Panama has been one of the few countries with a positive growth during these years, with a 2.4% GDP growth during 2009. In fact, the economy rebounded strongly in 2010, with a GDP growth rate approaching 7%, and strong growth is expected to continue in 2011. The Panama Canal Expansion project, Panama as a major center of financial services, together with an expected impressive growth in construction infrastructure and other major public works are best examples of sustained development during this crisis time.