Econamy

Economic activity in Panama varies according to location. Near the Panama Canal, the economy is based on business generated by the waterway, and on commerce, trade, manufacturing, and transportation. In most of the rest of Panama, the economy is based on agriculture.

The Panama Canal is the most important single factor in the country's economy. But agriculture employs more people than does any other single economic activity. The economy operates as a free enterprise system.

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The Panama Canal is the most important single factor in the country's economy. Tolls from ships that pass through the canal contribute millions of dollars annually to the Panamanian economy. The Panama Canal also directly and indirectly provides jobs for many Panamanians. The jobs include positions related to the operation and maintenance of the canal. They also include jobs in stores and other businesses that exist because of the economic activity generated by the canal.