Overview of Panama
Located on the Central American isthmus, Panama is globally known for the Panama Canal connecting the Atlantic and Pacific oceans, serving as a logistics and financial hub.
Profile
The country has an S-shaped, elongated isthmus terrain with a central mountain range running through it, bordered by the Caribbean Sea and Pacific Ocean on north and south coasts. The Panama Canal, which opened in 1914, is the backbone supporting the nation's economy, with canal-related logistics and international finance and services accounting for the majority of GDP. Rich tropical rainforests, islands, and indigenous cultures remain, with recent progress in ecotourism and resort development. The official language is Spanish, and the U.S. dollar circulates as legal currency, making dollar-based pricing and transactions commonplace.
- Official name
- Republic of Panama
- Common name
- Panama
- Numeric code
- 591
- Alpha-3 code
- PAN
- Alpha-2 code
- PA
- Population
- approximately 4.5 million (2023)
- Population density
- approximately 59 people/km²
- Primary languages
- Spanish, Kuna language, English
- Major religions
- Roman Catholicism
- National anthem
- Himno Istmeño
- Calling code
- +507
- Internet TLD
- .pa
History
Became a Spanish colony in the 16th century and gained independence from Colombia in 1903. The Canal Zone under U.S. control was fully returned in 1999.
During the colonial era, Panama served as a key point for South American silver transport and Pacific exploration. After gaining independence from Spain in 1821 and becoming part of Gran Colombia, it re-established independence in 1903 with U.S. backing. Placed under strong U.S. influence alongside canal construction, the 1977 Torrijos–Carter Treaties agreed on return, and full sovereignty was restored in 1999. Since then, the nation has experienced rapid growth centered on canal revenues and international finance, maintaining Central America's highest per capita GDP.
Geography & climate
Central mountain system traverses the country with coastal lowlands and mangroves, volcanic highlands, and tropical rainforest distributed in mosaic pattern.
Tropical monsoon to tropical rainforest climate
- Area
- North America (Central America) / 75417 km²
- Capital
- Panama City
- Largest city
- Panama City
- Coastal status
- Yes
- Major lakes
- Gatun Lake, Bayano Lake, Alajuela Lake
- Bordering countries
- Costa Rica, Colombia
Politics
Government: Constitutional republic (Presidential system)
Economy
Currency: Balboa (de facto U.S. dollar co-circulation) (PAB)
GDP (nominal): approximately 79 billion USD (2023)
GDP (PPP): approximately 150 billion USD (2023)
Language & timezone
Primary languages: Spanish, Kuna language, English
Time zone: Eastern Standard Time (EST)
Culture & customs
Ethnic groups
Mestizo, Afro-Panamanian, European descent, Kuna people, Ngäbe people, Emberá people, Chinese, Arab descent
Life expectancy
approximately 78.5 years
Literacy rate
approximately 96%
National sports
Boxing, Soccer, Basketball, Baseball, Athletics
Flag
Emblem
