Panama
Capital: Panama City · Americas
Panama is the hub linking North and South America, world-famous for the Panama Canal. This Central American nation of about 4.4 million people is crossed by the canal joining the Atlantic and Pacific — a chokepoint of global shipping and the country's economic lifeline. Anchored by the canal, finance and logistics, Panama City is a major regional business centre. Rich tropical ecology and coastline add tourism income. As a critical passage for world trade, Panama is small yet irreplaceable in global shipping and commerce — a superb window onto globalised logistics.
- Capital
- Panama City
- Population
- 4,570,133
- Area
- 74,177 km²
- Currency
- Panamanian balboa, United States dollar
- Languages
- Spanish
Country profile
Background
Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Ecuador, and Venezuela that was named the Republic of Gran Colombia. When the union dissolved in 1830, Panama remained part of Colombia. With US backing, Panama seceded from Colombia in 1903 and promptly signed a treaty with the US allowing for the construction of a canal and US sovereignty over a strip of land known as the Panama Canal Zone on either side of the structure. The US Army Corps of Engineers built the Panama Canal between 1904 and 1914. In 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of the century.…
Location
Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica
Climate
tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May)
Terrain
interior mostly steep, rugged mountains with dissected, upland plains; coastal plains with rolling hills
Natural resources
copper, mahogany forests, shrimp, hydropower
Ethnic groups
Mestizo (mixed Indigenous and White) 65%, Indigenous 12.3% (Ngabe 7.6%, Kuna 2.4%, Embera 0.9%, Bugle 0.8%, other 0.4%, unspecified 0.2%), Black or African descent 9.2%, Mulatto 6.8%, White 6.7% (2010 est.)
Religions
Evangelical 55%, Roman Catholic 33.4%, none 10.1%, unspecified 1.5% (2023 est.)
Government
presidential republic
Economy
upper middle-income Central American economy; increasing Chinese trade; US dollar user; canal expansion fueling broader infrastructure investment; services sector dominates economy; historic money-laundering and illegal drug hub
Panama · Travel guide
Understand
The isthmus connects two major landmasses—South America with Central and North America—resulting in incredibly diverse flora and fauna. Panama is often cited as the country with the most bird species in the world, boasting close to 900. Several Indigenous tribes still thrive here, living much as their ancestors did, which contributes to the richness of the nation's cultural fabric. The Panamanian government maintains strong ties with the United States and is highly supportive of business, development, and tourism. The International Monetary Fund has praised Panama’s diversified economy and predicts it will have one of the strongest GDP growth rates in the coming years. The country is well-known for its highly developed international banking sector, with nearly 80 banks from around the world—such as HSBC, BBVA, and Citi Bank—maintaining branches in Panama. The expanding Panama Canal continues to drive the country's service-based economy and remains one of the most important transportation hubs globally. Beyond its strong economic foundation, Panama's physical infrastructure—including modern hospitals, airports, and roads—is significantly more advanced than that of its Central American neighbors. Panama is home to a large expatriate community; around 25,000 U.S. citizens live in the country. It's worthwhile to spend some time reading about Panama and connecting with locals, expats, and other travelers before arriving. Consider joining local forums, expat blogs, or the Central America Forum. Many local blogs can provide the most up-to-date information on issues like flooding, earthquakes, trail closures, and the best places to eat.
Climate
Less than 9 degrees north of the equator, most of Panama enjoys temperatures that are fairly consistent year round, with daytime te
See
The Panama Canal - one of the world's most important interoceanic connections and probably the first thing that comes to your mind when thinking about Panama. There are different ways to explore the canal: the most visited place at the canal is the Miraflores Visitor Center / Miraflores Locks in Panama City (see the city's article for details). It is located at the old canal with its smaller locks for smaller ships, but still very impressive. To see the new, expanded canal, you can visit the Agua Clara Visitor Center in the city of Colon (Panama), on the Caribbean side of the canal. In addition, it is also possible to book a luxury train ride along the canal, or a boat ride on the canal. Panama City - being not only the capital city of, but also by far the biggest an
Getting there
Entry requirements Citizens from the following countries can enter Panama visa-free because their countries hold treaties with Panama that entitle their citizens to visit for up to 180 days without a visa, having a passport valid for at least 6 months upon entry: Andorra, Angola, Antigua and Barbuda, Argentina, Armenia, Austria, Australia, Bahamas, Barbados, Belize, Belarus, Belgium, Botswana, Bhutan, Brazil, Bolivia, Bosnia and Herzegovina, Brunei Darussalam, Bulgaria, Cape Verde, Cambodia, Canada, Czech Republic, Chile, Colombia, Comoros, Costa Rica, Croatia, Cyprus, Denmark, Dominica, Ecuador, El Salvador, Egypt, Fiji, Estonia, Finland, France, Gabon, Germany, Georgia, Gibraltar, Grenada, Greece, Guatemala, Guyana, Honduras, Hungary, Iceland, Italy, Ireland, Israel, Japan, Jamaica, Kenya, Kiribati, Latvia, Lebanon, Lithuania, Kuwait, Liechtenstein, Luxembourg, Madagascar, Malaysia, Maldives, Malta, Marshall Islands, Mauritius, Micronesia, Mexico, Moldova, Monaco, Mongolia, Montenegro, Namibia, Nauru, Netherlands, New Zealand, Nicaragua, North Korea, North Macedonia, Norway, Palau, Papua New Guinea, Paraguay, Peru, Poland, Portugal, Qatar, Romania, Russian Federation, Saint Kitts and Nevis, Saint Lucia, Solomon Islands, Samoa, São Tomé and Príncipe, San Marino, Saudi Arabia, Serbia, Seychelles, Singapore, Slovak Republic, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Tonga, The Vatican, Trinidad and Tobago, Turkey, Tuvalu, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Vanuatu and Vietnam.
This usually also applies to people of other nationalities (India, for example), if they have a residence permit issued by any of the above countries. For example, an Indian national living in the United States will be
Getting around
By bus
There are two kinds of buses in Panama: the ones you find on the highway, and "city buses" (Metrobuses, which replaced the Diablos Rojos (Red Devils). The highway buses are constantly making journeys from terminals in Panama city to different destinations along the Pan American Highway, and back to the terminal. They're pretty frequent, and the buses will pick you up or drop you off at any point along their route, and most of them are air conditioned. The roughly linear shape of the country makes it ideal for a bus system, so ideal in fact that you don't really need to rent a car to get around most areas. Take a bus to the intersection on the Pan American highway that you want. You can get on a bus any place on the Pan American highway going towards Panama City, but all trips originating from within the city require a ticket. The Grand Terminal in the city is large and modern, and will remind you of an American shopping mall or airport (it actually is a shopping mall, Albrook Mall, too). Schedules for all Panama are listed here. The highway buses are very cheap, count on a fare of about US$1 per hour traveled, sometimes less. One exception is fares from Tocumen airport, for which both buses and taxis charge through the roof (by Panamanian standards), simply because they can. If you want to get on a bus, stand by the side of the road, hold out your arm and make obvious pointing motions toward the ground. If you're on the bus and want to get off, yell "parada!" or tell the driver in advance. You'll get the hang of it pretty quick. The locals are very helpful with tourists on buses, and may offer help. Never ask for the fare in the bus: the bus drivers will most certainly always round up numbers in that case. Instead, know the fare beforehand (by asking the loca
Cities & destinations in Panama 22
Country fields from Wikidata (CC0); flag via Wikimedia Commons; profile from the CIA World Factbook (public domain); travel guide from Wikivoyage (CC BY-SA).