Panama

Panama, officially the Republic of Panama, is a country at the southern end of Central America in North America. It borders South America to the southeast, Costa Rica to the west, the Caribbean Sea to the north, and the Pacific Ocean to the south. The capital and largest city is Panama City, home to nearly half of the country's over 4 million people.

Before Spanish colonists arrived in the 16th century, Panama was home to many different Indigenous peoples. It broke away from Spain in 1821 and joined the Republic of Gran Colombia. After Gran Colombia dissolved in 1831, Panama became part of Colombia. With support from the United States, Panama became independent from Colombia in 1903. This allowed the construction of the Panama Canal. The canal was completed by the United States Army Corps of Engineers between 1904 and 1914. Later, the 1977 Torrijos–Carter Treaties agreed to transfer the canal to Panama, which happened on December 31, 1999.

Today, Panama's economy is strong. Revenue from canal tolls is important. The country also benefits from commerce, banking, and tourism. Panama's jungles cover about 40 percent of the land and are filled with many plants and animals, some of which are found nowhere else on Earth. Panama is also a founding member of many important international groups, such as the United Nations, the Organization of American States, and the World Health Organization.

Etymology

The name "Panama" might come from different places. One idea is that it comes from a special tree called the Panama tree. Another idea is that it comes from a Guna language word meaning "far away."

There is also a story that "Panamá" was the name of a fishing village. Spanish explorers came there and thought it meant "abundance of fish." Later, this became the spot where Panama City was founded.

History

Pre-Columbian period

The Isthmus of Panama formed about three million years ago, connecting North and South America. This land let plants and animals move between the two continents.

Early people in Panama made some of the first pottery in the Americas around 2500–1700 BC. They made beautiful pottery and large stone sculptures. Before Europeans came, many different groups lived there, speaking many languages.

Conquest to 1799

In 1501, a Spanish explorer named Rodrigo de Bastidas was the first European to explore Panama. Soon after, Christopher Columbus visited and made a small settlement. In 1513, Vasco Núñez de Balboa crossed the isthmus and discovered the Pacific Ocean, showing it was the path between the seas. Panama became an important place for Spain’s empire in the New World. Gold and silver from South America were brought across the land to be shipped to Spain.

1800s

When the Spanish American wars of independence began, Panama prepared to join. In 1821, the people of a town called Azuero declared independence from Spain, encouraging others to do the same. This led to Panama becoming part of Gran Colombia and later the Republic of New Granada.

Independence to 1968

Panama tried many times to separate from Colombia. In 1903, with help from the United States, Panama became independent. The United States built the Panama Canal, finishing it in 1914.

Military dictatorship

In 1968, a military coup removed the president. The military governed for many years, bringing changes to the government and society. There were struggles and protests during this time.

Post-intervention era

After the United States’ intervention in 1989, Panama returned to civilian rule. New leaders worked to improve the country, focusing on fairness and programs to help people. Leaders like Mireya Moscoso and Martin Torrijos aimed to make the government more honest and support children and families.

Panama continued to elect new presidents, with changes in leadership through voting. Recent years have included facing challenges like the COVID-19 pandemic and protests. In 2024, José Raúl Mulino became the new president.

Geography

Main article: Geography of Panama

See also: Geology of Panama

Panama is in Central America. It touches both the Caribbean Sea and the Pacific Ocean. It is between Colombia and Costa Rica. Panama sits on a narrow strip of land called the Isthmus of Panama. This area is important because it has the Panama Canal. The canal connects the Atlantic Ocean to the Pacific Ocean.

Panama has many mountains and hills. The highest point is Volcán Barú. It is over 3,400 meters tall. There is also a thick jungle called the Darién Gap between Panama and Colombia. Panama has many rivers. One, the Río Chagres, helps create a big lake that is part of the Panama Canal.

Waterways

Panama has almost 500 rivers. One important river is the Río Chagres. It flows into a large artificial lake called Gatun Lake. This lake is part of the Panama Canal. Another river, the Río Chepo, helps provide power for the area.

Harbors

The Caribbean coast has several natural harbors. Two very busy ports are at each end of the Panama Canal: the Port of Cristóbal and the Port of Balboa. These ports handle many ships and cargo.

Climate

Main article: Climate of Panama

Panama has a tropical climate. It is usually warm and humid all year. Temperatures don’t change much. It often rains a lot, especially from April to December. It rains more on the Caribbean side than on the Pacific side.

Biodiversity

Panama’s warm, wet climate helps many plants and animals live there. Forests cover much of the land. Panama has many national parks, including Soberanía National Park. This park has many different kinds of birds and animals. Darien National Park is very large and is a special protected area. There is also a festival each year to help protect the Harlequin Frog. This frog is in danger because it has lost its home.

Government and politics

Main article: Politics of Panama

See also: Elections in Panama

José Raúl Mulino
President

Vacant
Vice President

Panama has a system where the president leads the country and the government. People aged 18 and older can vote in elections every five years. The country has a group of leaders called the National Assembly that helps make laws. Panama has many smaller political groups and two bigger ones.

Since 1989, Panama has peacefully changed leaders many times. The country works closely with the United States on many projects. Panama works with other countries to keep the area safe and peaceful. Instead of having a big army, Panama uses police and security forces to keep order and help with safety. These forces work with other countries, like the United States, to protect the region.

Economy

Main article: Economy of Panama

Panama’s economy is strong. In 2025, each person earned about 19,800 USD on average. Panama’s economy grows fast and is one of the fastest in Latin America.

Panama ranked 59th on the Human Development Index in 2025. Even though Panama is a high-income country, some people still live with very little money.

Panama’s total debt was 59.6% of its GDP in 2025. In 2024, Panama sold goods worth 37.37 billion USD to other countries.

Economic sectors

Panama’s economy depends on services like shopping, tourism, and trading. The Panama Canal is very important for shipping and helps bring in money for the government.

Panama also gets resources like copper, mahogany wood, shrimp, and uses hydropower.

Panama as a tax haven

Panama has a big financial center. Many people work in the banking sector. Panama has worked to follow international rules since 2016.

Transportation

Main article: Transport in Panama

Panama has Tocumen International Airport, the biggest airport in Central America. This is where Copa Airlines, Panama’s main airline, operates. There are also many smaller airfields. Roads in Panama are safe, but driving at night can be hard sometimes. Cars drive on the right side, and everyone must wear seat belts. The Pan-American Highway goes through Panama.

In Panama City, there are many bus routes and a Panama Metro with two lines.

Tourism

Main article: Tourism in Panama

In 2025, more than two million tourists visited Panama. Many tourists come on cruise ships. The most visitors come from the United States, Colombia, Venezuela, Ecuador, Brazil, and Spain.

Tourism keeps growing in Panama and brings in a lot of money.

Panama has special rules to help visitors and people who want to live there.

Currency

The money used in Panama is called the balboa, which is worth the same as the United States dollar. People use US dollars for big payments, and Panama has its own coins, but US coins are also used.

International trade

Panama trades a lot because of the Colón Free Trade Zone, the biggest free trade area in the Western Hemisphere. In 2024, goods worth 24.7 billion USD moved through this zone.

Panama sells things like coffee, bananas, palm oil, cane sugar, and shrimp. The biggest export is copper ore.

Panama has agreements to help its trade with the United States.

Demographics

Main article: Demographics of Panama

In 2025, Panama had about 4.6 million people. This is more than in 2021, when there were 4.35 million people. Most people in Panama live in cities. Over 75 percent live in urban areas. The biggest city is Panama City, where many people live in nearby towns.

Largest cities

Main article: List of cities in Panama

These are the 10 largest cities and towns in Panama. Many of them are part of the Panama City area.

Ethnic groups

In 2010, most people in Panama were of mixed background, called Mestizo. There are also Indigenous groups, people of African descent, and others. By 2023, more people identified as Indigenous.

The Indigenous groups include the Ngäbe, Guna, Emberá, Buglé, Wounaan, Naso Tjërdi, and Bri Bri.

Languages

Spanish is the main language spoken in Panama. Many people also speak English, especially in jobs that need it. Some people still speak their own Indigenous languages. A small number speak other languages like French or Arabic.

Religion

Main article: Religion in Panama

Most people in Panama are Christian. Many are Roman Catholic, and others are Protestant. There are also smaller groups like Jehovah’s Witnesses, Mormons, Buddhists, and Jewish people. Some Indigenous groups have their own religious traditions.

Education

Main article: Education in Panama

Education in Panama started a long time ago. Today, children must go to school from ages 6 to 15. Most people can read and write. Schools have been getting better over the years.

Culture

Main article: Culture of Panama

See also: Music of Panama and Mass media in Panama

Panama's culture comes from Spanish, African, and Indigenous Panamanian traditions. One example is the tamborito, a dance that mixes Spanish steps with African rhythms.

Dance is important in Panama, and you can see many dances at festivals. Cities have live music, including reggae in Spanish, reggaeton, jazz, blues, salsa, and rock.

Holidays and festivities

Main article: Public holidays in Panama

In Panama City, people celebrate Christmas with a special parade called El desfile de Navidad. They decorate floats in Panamanian colors, and people wear traditional clothes. There is a big Christmas tree lighting, and everyone sings carols together.

Literature

Stories about Panama began in 1535. Later, writers started creating their own stories, often inspired by the Panama Canal.

Handicraft

In villages, people make traditional crafts like woodcarvings, masks, and pottery. The Guna people are known for their beautiful molas, colorful designs made by women on special clothing.

Clothing

Men in Panama often wear white shirts, short pants, and straw hats. Women’s traditional dress is called a pollera. It is a long, fancy dress with lots of decorations. Today, people sometimes wear these clothes during parades and festivals.

Cuisine

Panama’s food comes from Spanish, Indigenous, and African influences. The country has many tropical fruits and vegetables. Popular foods include fresh seafood, ceviche, and pastries like empanadas and pastelitos. Common ingredients are corn, rice, wheat, plantains, yuca, beef, chicken, pork, and seafood.

Sports

Baseball is the most popular sport in Panama. Many Panamanian players have joined teams in the United States. Football (soccer) is also popular, and Panama’s national team has played in the World Cup. Other sports people enjoy include basketball, volleyball, taekwondo, golf, tennis, triathlon, flag football, American football, rugby, field hockey, softball, skateboarding, BMX, and surfing.