Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Venezuela, and Ecuador - named the Republic of Gran Colombia. When the latter 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 on either side of the structure (the Panama Canal Zone). The Panama Canal was built by the US Army Corps of Engineers 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. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the subsequent decades. With US help, dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the area supporting the Canal, and remaining US military bases were transferred to Panama by the end of 1999. In October 2006, Panamanians approved an ambitious plan to expand the Canal. The project, which is to begin in 2007 and could double the Canal's capacity, is expected to be completed in 2014-15.
Location
Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica
Geographic coordinates
9 00 N, 80 00 W
Map references
Central America and the Caribbean
Area
total
78,200 sq km
land
75,990 sq km
water
2,210 sq km
Area - comparative
slightly smaller than South Carolina
Land boundaries
total
555 km
border countries
Colombia 225 km, Costa Rica 330 km
Coastline
2,490 km
Maritime claims
territorial sea
12 nm
contiguous zone
24 nm
exclusive economic zone
200 nm or edge of continental margin
Climate
tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May)
Terrain
interior mostly steep, rugged mountains and dissected, upland plains; coastal areas largely plains and rolling hills
Elevation extremes
lowest point
Pacific Ocean 0 m
highest point
Volcan Baru 3,475 m
Natural resources
copper, mahogany forests, shrimp, hydropower
Land use
arable land
7.26%
permanent crops
1.95%
other
90.79% (2005)
Irrigated land
430 sq km (2003)
Natural hazards
occasional severe storms and forest fires in the Darien area
Environment - current issues
water pollution from agricultural runoff threatens fishery resources; deforestation of tropical rain forest; land degradation and soil erosion threatens siltation of Panama Canal; air pollution in urban areas; mining threatens natural resources
Environment - international agreements
party to
Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
signed, but not ratified
Marine Life Conservation
Geography - note
strategic location on eastern end of isthmus forming land bridge connecting North and South America; controls Panama Canal that links North Atlantic Ocean via Caribbean Sea with North Pacific Ocean
Population
3,242,173 (July 2007 est.)
Age structure
0-14 years
30% (male 496,195/female 476,508)
15-64 years
63.6% (male 1,044,139/female 1,016,805)
65 years and over
6.4% (male 97,365/female 111,161) (2007 est.)
Median age
total
26.4 years
male
26 years
female
26.7 years (2007 est.)
Population growth rate
1.564% (2007 est.)
Birth rate
21.45 births/1,000 population (2007 est.)
Death rate
5.44 deaths/1,000 population (2007 est.)
Net migration rate
-0.37 migrant(s)/1,000 population (2007 est.)
Sex ratio
at birth
1.05 male(s)/female
under 15 years
1.041 male(s)/female
15-64 years
1.027 male(s)/female
65 years and over
0.876 male(s)/female
total population
1.021 male(s)/female (2007 est.)
Infant mortality rate
total
15.96 deaths/1,000 live births
male
17.33 deaths/1,000 live births
female
14.54 deaths/1,000 live births (2007 est.)
Life expectancy at birth
total population
75.19 years
male
72.69 years
female
77.8 years (2007 est.)
Total fertility rate
2.66 children born/woman (2007 est.)
HIV/AIDS - adult prevalence rate
0.9% (2003 est.)
HIV/AIDS - people living with HIV/AIDS
16,000 (2003 est.)
HIV/AIDS - deaths
less than 500 (2003 est.)
Nationality
noun
Panamanian(s)
adjective
Panamanian
Ethnic groups
mestizo (mixed Amerindian and white) 70%, Amerindian and mixed (West Indian) 14%, white 10%, Amerindian 6%
Religions
Roman Catholic 85%, Protestant 15%
Languages
Spanish (official), English 14%; note - many Panamanians bilingual
Literacy
definition
age 15 and over can read and write
total population
91.9%
male
92.5%
female
91.2% (2000 census)
Country name
conventional long form
Republic of Panama
conventional short form
Panama
local long form
Republica de Panama
local short form
Panama
Government type
constitutional democracy
Capital
name
Panama
geographic coordinates
8 58 N, 79 32 W
time difference
UTC-5 (same time as Washington, DC during Standard Time)
Administrative divisions
9 provinces (provincias, singular - provincia) and 1 territory* (comarca); Bocas del Toro, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos, Panama, San Blas*(Kuna Yala), and Veraguas
Independence
3 November 1903 (from Colombia; became independent from Spain 28 November 1821)
National holiday
Independence Day, 3 November (1903)
Constitution
11 October 1972; major reforms adopted 1978, 1983, 1994, and 2004
Legal system
based on civil law system; judicial review of legislative acts in the Supreme Court of Justice; accepts compulsory ICJ jurisdiction with reservations
Suffrage
18 years of age; universal and compulsory
Executive branch
chief of state
President Martin TORRIJOS Espino (since 1 September 2004); First Vice President Samuel LEWIS Navarro (since 1 September 2004); Second Vice President Ruben AROSEMENA Valdes (since 1 September 2004); note - the president is both the chief of state and head of government
head of government
President Martin TORRIJOS Espino (since 1 September 2004); First Vice President Samuel LEWIS Navarro (since 1 September 2004); Second Vice President Ruben AROSEMENA Valdes (since 1 September 2004)
cabinet
Cabinet appointed by the president
elections
president and vice presidents elected on the same ticket by popular vote for five-year terms (eligible for two more terms); election last held 2 May 2004 (next to be held on 3 May 2009); note - beginning in 2009, Panama will have only one vice president.
election results
Martin TORRIJOS Espino elected president; percent of vote - Martin TORRIJOS Espino 47.5%, Guillermo ENDARA Galimany 30.6%, Jose Miguel ALEMAN 17%, Ricardo MARTINELLI 4.9%
note
government coalition - PRD (Democratic Revolutionary Party), PP (Popular Party)
Legislative branch
unicameral National Assembly or Asamblea Nacional (78 seats; members are elected by popular vote to serve five-year terms); note - in 2009, the number of seats will change to 71
elections: last held 2 May 2004 (next to be held 3 May 2009)
election results: percent of vote by party - NA; seats by party - PRD 41, PA 17, PS 9, MOLIRENA 4, CD 3, PLN 3, PP 1
note: legislators from outlying rural districts are chosen on a plurality basis while districts located in more populous towns and cities elect multiple legislators by means of a proportion-based formula
Judicial branch
Supreme Court of Justice or Corte Suprema de Justicia (nine judges appointed for 10-year terms); five superior courts; three courts of appeal
Political parties and leaders
Democratic Change or CD [Ricardo MARTINELLI]; Democratic Revolutionary Party or PRD [Hugo GUIRAUD]; Liberal Party or PLN [Joaquin F. Franco VASQUEZ]; Nationalist Republican Liberal Movement or MOLIRENA [Gisela CHUNG]; Panamenista Party or PA [Juan Carlos VARELA] (formerly the Arnulfista Party); Patriotic Union Party or PUP [Jose Raul MULINO and Anibal GALINDO]; Popular Party or PP [Rene ORILLAC] (formerly Christian Democratic Party or PDC); Solidarity Party or PS
Political pressure groups and leaders
Chamber of Commerce; National Civic Crusade; National Council of Organized Workers or CONATO; National Council of Private Enterprise or CONEP; National Union of Construction and Similar Workers (SUNTRACS); Panamanian Association of Business Executives or APEDE; Panamanian Industrialists Society or SIP; Workers Confederation of the Republic of Panama or CTRP
Atlanta, Houston, Miami, New Orleans, New York, Philadelphia, San Francisco, San Juan (Puerto Rico), Tampa
Diplomatic representation from the US
chief of mission
Ambassador William A. EATON
embassy
Avenida Balboa and Calle 37, Apartado Postal 0816-02561, Zona 5, Panama City 5
mailing address
American Embassy Panama, Unit 0945, APO AA 34002
telephone
[507] 207-7000
FAX
[507] 227-1964
Flag description
divided into four, equal rectangles; the top quadrants are white (hoist side) with a blue five-pointed star in the center and plain red; the bottom quadrants are plain blue (hoist side) and white with a red five-pointed star in the center
Economy - overview
Panama's dollarized economy rests primarily on a well-developed services sector that accounts for three-fourths of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump in the Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth in 2000-03; growth picked up in 2004-06 led by export-oriented services and a construction boom stimulated by tax incentives. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. Unemployment remains high. In October 2006, voters passed a referendum to expand the Panama Canal to accommodate ships that are now too large to transverse the transoceanic crossway. Not a CAFTA signatory, Panama in December 2006 independently negotiated a free trade agreement with the US, which, when implemented, will help promote the country's economic growth.
GDP (purchasing power parity)
$26.04 billion (2006 est.)
GDP (official exchange rate)
$16.47 billion (2006 est.)
GDP - real growth rate
8.1% (2006 est.)
GDP - per capita (PPP)
$8,200 (2006 est.)
GDP - composition by sector
agriculture
7.2%
industry
16.4%
services
76.4% (2006 est.)
Labor force
1.441 million
note: shortage of skilled labor, but an oversupply of unskilled labor (2006 est.)
Labor force - by occupation
agriculture
20.8%
industry
18%
services
61.2% (1995 est.)
Unemployment rate
8.8% (2006 est.)
Population below poverty line
37% (1999 est.)
Household income or consumption by percentage share
lowest 10%
1.2%
highest 10%
35.7% (1997)
Distribution of family income - Gini index
56.4 (2000)
Inflation rate (consumer prices)
2.6% (2006 est.)
Investment (gross fixed)
17.5% of GDP (2006 est.)
Budget
revenues
$4.157 billion
expenditures
$4.489 billion; including capital expenditures of $471 million (2006 est.)
Public debt
61.3% of GDP (2006 est.)
Agriculture - products
Industries
construction, brewing, cement and other construction materials, sugar milling
Industrial production growth rate
3% (2006 est.)
Electricity - production
7.545 billion kWh (2004)
Electricity - production by source
fossil fuel
37%
hydro
61.3%
nuclear
0%
other
1.7% (2001)
Electricity - consumption
6.888 billion kWh (2004)
Electricity - exports
207 million kWh (2004)
Electricity - imports
78 million kWh (2004)
Oil - production
0 bbl/day (2004 est.)
Oil - consumption
79,000 bbl/day (2004 est.)
Oil - exports
NA bbl/day
Oil - imports
NA bbl/day
Natural gas - production
0 cu m (2004 est.)
Natural gas - consumption
0 cu m (2004 est.)
Current account balance
-$467 million (2006 est.)
Exports
$8.087 billion f.o.b.; note - includes the Colon Free Zone (2006 est.)
Exports - commodities
bananas, shrimp, sugar, coffee, clothing
Exports - partners
Spain 26.8%, US 18.9%, Italy 5.7%, Germany 5.4% (2006)
Imports
$9.365 billion f.o.b. (includes the Colon Free Zone) (2006 est.)
Imports - commodities
capital goods, foodstuffs, consumer goods, chemicals
Imports - partners
Japan 33.2%, China 16%, US 11.2%, Singapore 11.2% (2006)
Reserves of foreign exchange and gold
$1.236 billion (2006 est.)
Debt - external
$9.993 billion (2006 est.)
Economic aid - recipient
$197.1 million (1995)
Currency (code)
balboa (PAB); US dollar (USD)
Currency code
PAB; USD
Exchange rates
balboas per US dollar - 1 (2006), 1 (2005), 1 (2004), 1 (2003), 1 (2002)
Fiscal year
calendar year
Telephones - main lines in use
440,100 (2005)
Telephones - mobile cellular
1.352 million (2005)
Telephone system
general assessment
domestic and international facilities well developed
domestic
NA
international
country code - 507; 1 coaxial submarine cable; satellite earth stations - 2 Intelsat (Atlantic Ocean); connected to the Central American Microwave System
Radio broadcast stations
AM 101, FM 134, shortwave 0 (1998)
Radios
815,000 (1997)
Television broadcast stations
38 (including repeaters) (1998)
Televisions
510,000 (1997)
Internet country code
.pa
Internet hosts
7,149 (2006)
Internet Service Providers (ISPs)
6 (2000)
Internet users
300,000 (2005)
Airports
117 (2006)
Airports - with paved runways
total
53
over 3,047 m
1
2,438 to 3,047 m
1
1,524 to 2,437 m
5
914 to 1,523 m
18
under 914 m
28 (2006)
Airports - with unpaved runways
total
64
1,524 to 2,437 m
1
914 to 1,523 m
10
under 914 m
53 (2006)
Railways
total
355 km
standard gauge
77 km 1.435-m gauge
narrow gauge
278 km 0.914-m gauge (2005)
Roadways
total
11,643 km
paved
4,028 km
unpaved
7,615 km (2000)
Waterways
800 km (includes 82 km Panama Canal) (2007)
Merchant marine
total
5,473 ships (1000 GRT or over) 146,511,342 GRT/219,940,567 DWT
4,922 (Anguilla 1, Argentina 9, Australia 3, Bahamas, The 2, Belgium 11, Bermuda 1, Bulgaria 1, Canada 4, Chile 9, China 420, Colombia 5, Croatia 5, Cuba 11, Cyprus 14, Denmark 34, Egypt 16, Estonia 3, France 15, Gabon 1, Germany 35, Greece 524, Hong Kong 169, India 19, Indonesia 50, Iran 4, Ireland 2, Israel 6, Italy 15, Japan 2007, Jordan 13, South Korea 291, Kuwait 2, Latvia 3, Lebanon 2, Lithuania 5, Malaysia 13, Maldives 1, Malta 3, Mexico 5, Monaco 9, Morocco 1, Netherlands 21, Nigeria 7, Norway 66, Pakistan 3, Peru 15, Philippines 13, Poland 15, Portugal 10, Qatar 1, Romania 9, Russia 7, Saudi Arabia 8, Singapore 67, South Africa 3, Spain 53, Sri Lanka 5, Sudan 1, Sweden 5, Switzerland 226, Syria 18, Taiwan 308, Thailand 9, Trinidad and Tobago 1, Turkey 42, UAE 105, UK 37, Ukraine 8, US 94, Venezuela 14, Vietnam 4, Yemen 3)
registered in other countries
1 (Venezuela 1) (2006)
Ports and terminals
Balboa, Colon, Cristobal
Military branches
an amendment to the Constitution abolished the armed forces, but there are security forces (Panamanian Public Forces or PPF includes the Panamanian National Police, National Maritime Service, and National Air Service)
Manpower available for military service
males age 18-49: 751,065 (2005 est.)
Manpower fit for military service
males age 18-49: 591,604 (2005 est.)
Manpower reaching military service age annually
males age 18-49: 29,724
Military expenditures - percent of GDP
1% (2006)
Military - note
on 10 February 1990, the government of then President ENDARA abolished Panama's military and reformed the security apparatus by creating the Panamanian Public Forces; in October 1994, Panama's Legislative Assembly approved a constitutional amendment prohibiting the creation of a standing military force, but allowing the temporary establishment of special police units to counter acts of "external aggression"
Disputes - international
organized illegal narcotics operations in Colombia operate within the remote border region with Panama
Illicit drugs
major cocaine transshipment point and primary money-laundering center for narcotics revenue; money-laundering activity is especially heavy in the Colon Free Zone; offshore financial center; negligible signs of coca cultivation; monitoring of financial transactions is improving; official corruption remains a major problem
