View source for Panama

{{short description|Country spanning North and South America}}
{{About|the country}}
{{pp-move}}
{{protection padlock|small=yes}}
{{Use mdy dates|date=June 2023}}
{{Infobox country
| conventional_long_name = Republic of Panama
| common_name            = Panama
| native_name            = {{native name|es|República de Panamá}}
| image_flag             = Flag of Panama.svg
| image_coat             = Coat of arms of Panama.svg
| national_motto         = ''Pro Mundi Beneficio'' ([[Latin]])<br />"For the Benefit of the World"
| national_anthem        = {{native phrase|es|[[Himno Istmeño]]|nolink=yes}}<br />"Hymn of the Isthmus"{{parabr}}{{center|[[File:Panama National Anthem.ogg]]}}
| image_map              = {{switcher |  [[File:PAN orthographic.svg|frameless]] | Location in the Western Hemisphere |  [[File:Mapa de Panamá (fronteras).svg|frameless]] | Panama and its neighbors}}
| image_map2             = 
| capital                = [[Panama City]]
| coordinates            = {{Coord|8|58|N|79|32|W|type:city}}
| largest_city           = Panama City
| official_languages     = [[Panamanian Spanish|Spanish]]
| regional_languages     = [[Guaymí language|Guaymí]]<br />[[Buglere]]<br />[[Emberá languages|Emberá]]<br />[[Wounaan language|Wounaan]]<br />[[Guna language|Guna]]<br />[[Teribe language|Teribe]]<br />[[Bribri language|Bribri]]
| ethnic_groups          = {{unbulleted list |65.0% [[Mestizo]] (mixed [[White Latin Americans|White]] and [[Indigenous peoples of Panama|Indigenous]])||12.3% [[Indigenous peoples of Panama|Indigenous]] |9.2% [[Afro-Panamanians|Black]] |6.8% [[Mulatto]] (mixed [[White Latin Americans|White]] and [[Afro-Panamanians|Black]])|6.7% [[White Latin Americans|White]]}}
| ethnic_groups_ref      = <ref>{{cite web |url=https://www.cia.gov/the-world-factbook/countries/panama/ |title=Panama |work=CIA World Factbook |date=February 4, 2022 |access-date=January 24, 2021 |archive-date=January 23, 2021 |archive-url=https://web.archive.org/web/20210123023447/https://www.cia.gov/the-world-factbook/countries/panama/ |url-status=live }}</ref>
| ethnic_groups_year     = 2020
| demonym                = [[Panamanians|Panamanian]]
| government_type        = Unitary [[presidential republic]]
| leader_title1          = [[List of heads of state of Panama|President]]
| leader_name1           = [[José Raúl Mulino]]
| leader_title2          = [[Vice President of Panama|Vice President]]
| leader_name2           = Vacant
| legislature            = [[National Assembly (Panama)|National Assembly]]
| sovereignty_type       = [[Independence]]
| established_event1     = from [[Spanish Empire]]
| established_date1      = November 28, 1821
| established_event2     = union with [[Gran Colombia]]
| established_date2      = December 1821
| established_event3     = from Republic of [[Colombia]]
| established_date3      = November 3, 1903
| established_event4     = [[Constitution of Panama|Current constitution]]
| established_date4      = October 11, 1972
| area_km2               = 75,417
| area_footnote          = <ref name="unstats08">{{Cite web|url=http://unstats.un.org/unsd/demographic/products/dyb/dyb2012/Table03.pdf|title=Demographic Yearbook – Table 3: Population by sex, rate of population increase, surface area and density|publisher=United Nations Statistics Division|date=2012|access-date=September 4, 2017|archive-date=August 26, 2020|archive-url=https://web.archive.org/web/20200826065042/https://unstats.un.org/unsd/demographic/products/dyb/dyb2012/Table03.pdf|url-status=live}}</ref><ref>{{Cite web|url=https://unstats.un.org/unsd/demographic/products/dyb/dyb2012.htm|title=United Nations Statistics Division - Demographic and Social Statistics|website=unstats.un.org|access-date=May 21, 2021|archive-date=October 15, 2017|archive-url=https://web.archive.org/web/20171015114145/https://unstats.un.org/unsd/demographic/products/dyb/dyb2012.htm|url-status=live}}</ref>
| area_rank              = 116th <!-- Area rank should match [[List of countries and dependencies by area]] -->
| area_sq_mi             = 29,119
| percent_water          = 2.9
| population_estimate    = {{IncreaseNeutral}} 4,337,768<ref>{{Cite CIA World Factbook|country=Panama|access-date=September 24, 2022|date=2022}}</ref>
| population_estimate_year = 2022
| population_estimate_rank = 127th
| population_density_km2 = 56
| population_density_sq_mi = 145<!--Do not remove per [[Wikipedia:Manual of Style/Dates and numbers]]-->
| population_density_rank = 122nd
| GDP_PPP                = {{increase}} $195.279 billion<ref name="IMFWEO.PA">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/October/weo-report?c=283,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=1980&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=World Economic Outlook Database, October 2024 Edition. (Panama) |publisher=[[International Monetary Fund]] |website=IMF.org |date=10 October 2024 |access-date=2 January 2025 |archive-date=November 9, 2024 |archive-url=https://web.archive.org/web/20241109203651/https://www.imf.org/en/Publications/WEO/weo-database/2024/October/weo-report?c=283,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=1980&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |url-status=live }}</ref>
| GDP_PPP_year           = 2025
| GDP_PPP_rank           = 80th
| GDP_PPP_per_capita     = {{increase}} $42,772<ref name="IMFWEO.PA" />
| GDP_PPP_per_capita_rank = 50th
| GDP_nominal            = {{increase}} $91.731 billion<ref name="IMFWEO.PA" />
| GDP_nominal_year       = 2025
| GDP_nominal_rank       = 77th
| GDP_nominal_per_capita = {{increase}} $20,092<ref name="IMFWEO.PA" />
| GDP_nominal_per_capita_rank = 55th
| Gini                   = 48.9<!--number only-->
| Gini_year              = 2023
| Gini_change            = decrease<!--increase/decrease/steady-->
| Gini_ref               = <ref>{{cite web|url=https://www.cia.gov/the-world-factbook/field/gini-index-coefficient-distribution-of-family-income/country-comparison/|title=Gini Index coefficient|publisher=[[The World Factbook]]|access-date=September 24, 2024|archive-date=July 17, 2021|archive-url=https://web.archive.org/web/20210717071854/https://www.cia.gov/the-world-factbook/field/gini-index-coefficient-distribution-of-family-income/country-comparison|url-status=live}}</ref>
| Gini_rank              = 
| HDI                    = 0.839
| HDI_rank               = 59th
| HDI_year               = 2023<!-- Please use the year to which the data refers, not the publication year. -->
| HDI_change             = increase
| HDI_ref                = <ref name="UNHDR">{{Cite web |date=6 May 2025 |title=Human Development Report 2025 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2025reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20250506051232/https://hdr.undp.org/system/files/documents/global-report-document/hdr2025reporten.pdf |archive-date=6 May 2025 |access-date=6 May 2025 |publisher=[[United Nations Development Programme]]}}</ref>
| currency               = {{unbulleted list |[[Panamanian balboa|Balboa]] ([[ISO 4217|PAB]])|{{nowrap|[[United States dollar]] ([[ISO 4217|USD]])}}}}
| time_zone              = [[Eastern Time Zone|EST]]
| utc_offset             = −5
| date_format            = mm/dd/yyyy<br />dd/mm/yyyy
| drives_on              = Right
| calling_code           = [[Telephone numbers in Panama|+507]]
| iso3166code            = PA
| cctld                  = [[.pa]]
| religion_year          = 2020
| religion_ref           = <ref name="2015survey">{{Cite journal|date=December 2016|title=Segunda Encuesta Nacional de Hogares, Panama 2015|url=http://ministeriopublico.gob.pa/wp-content/multimedia/2017/09/Encuesta-de-Hogares-2015-16-viii-17-publicaci%C3%B3n-digital.pdf|journal=Ministerio Público de la República de Panamá|access-date=February 17, 2019|archive-date=February 18, 2019|archive-url=https://web.archive.org/web/20190218081846/http://ministeriopublico.gob.pa/wp-content/multimedia/2017/09/Encuesta-de-Hogares-2015-16-viii-17-publicaci%C3%B3n-digital.pdf|url-status=dead}}</ref>
| religion               = {{ublist |item_style=white-space:nowrap;
  |{{Tree list}}
* 91.5% [[Christianity in Panama|Christianity]]
** 63.2% [[Catholic Church in Panama|Catholicism]]
** 25.0% [[Protestantism]]
** 3.3% other [[List of Christian denominations|Christian]]
 {{Tree list/end}}
  |7.6% [[Irreligion in Latin America|no religion]]
  |0.9% other}}
| today                  = 
}}

'''Panama''',{{Efn|({{IPAc-en|audio=En-us-Panama-2.ogg|ˈ|p|æ|n|ə|m|ɑː}} {{Respell|PAN|ə-mah}}, {{IPAc-en||p|æ|n|ə|ˈ|m|ɑː}} {{Respell|pan-ə|MAH}}; {{langx|es|link=no|Panamá}} {{IPA|es|panaˈma|IPA|ES-pe - Panamá.ogg}})}} officially the '''Republic of Panama''',{{Efn|({{langx|es|República de Panamá}})}} is a country located at the southern end of [[Central America]], bordering [[South America]]. It is bordered by [[Costa Rica]] to the west, [[Colombia]] to the southeast, the Caribbean Sea to the north, and the Pacific Ocean to the south. Its capital and largest city is [[Panama City]], whose [[metropolitan area]] is home to nearly half of the country's over {{#expr:{{replace|{{UN Population|Panama}}|,||}}/1e6 round 0}} million inhabitants.{{UN_Population|ref}}

Before the arrival of [[Spanish Empire|Spanish colonists]] in the 16th century, Panama was inhabited by a number of different [[Indigenous peoples of Panama|indigenous tribes]]. It [[Independence Act of Panama|broke away from Spain]] in 1821 and joined the Republic of [[Gran Colombia]], a union of [[Viceroyalty of New Granada|Nueva Granada]], [[Ecuador]], and [[Venezuela]]. After Gran Colombia dissolved in 1831, Panama and Nueva Granada eventually became the Republic of Colombia. With the backing of the United States, Panama seceded from Colombia in 1903, allowing the construction of the [[Panama Canal]] to be completed by the [[United States Army Corps of Engineers]] between 1904 and 1914. The 1977 [[Torrijos–Carter Treaties]] agreed to transfer the canal from the United States to Panama on December 31, 1999.<ref name="cia">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/panama/ |title=Panama |work=CIA – [[The World Factbook]] |access-date=December 23, 2010 |archive-date=January 23, 2021 |archive-url=https://web.archive.org/web/20210123023447/https://www.cia.gov/the-world-factbook/countries/panama/ |url-status=live }}</ref> The [[Panama Canal Zone|surrounding territory]] was returned first, in 1979.<ref name="19770907_usdos_panamacanaltreaty">{{cite book|title=United States Treaties and Other International Agreements|chapter=Panama Canal Treaty|volume=33|page=55|publisher=United States Department of State|chapter-url=https://books.google.com/books?id=n559BTeMBIsC&pg=PA39|author=Department of State, United States of America|date=1987|quote=Upon entry into force of this Treaty, the United States Government agencies known as the Panama Canal Company and the Canal Zone Government shall cease to operate within the territory of the Republic of Panama that formerly constituted the Canal Zone.|orig-year=Signed at Washington on September 7, 1977. Entered into force October 1, 1979.|id=33 UST 39; TIAS 10030|access-date=September 13, 2020|archive-date=January 24, 2024|archive-url=https://web.archive.org/web/20240124105627/https://books.google.com/books?id=n559BTeMBIsC&pg=PA39#v=onepage&q&f=false|url-status=live}}</ref>

Revenue from canal tolls has continued to represent a significant portion of Panama's [[Gross domestic product|GDP]], especially after the [[Panama Canal expansion project]] (finished in 2016) doubled its capacity. Commerce, banking, and tourism are major sectors. Panama is regarded as having a [[World Bank high-income economy|high-income economy]].<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=September 29, 2019 |archive-date=December 22, 2019 |archive-url=https://web.archive.org/web/20191222001529/https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |url-status=live }}</ref> In 2019, [[List of countries by Human Development Index|Panama ranked 57th in the world]] in terms of the [[Human Development Index]].<ref name="HDI">{{cite book|title=Human Development Report 2020 The Next Frontier: Human Development and the Anthropocene|date=December 15, 2020|publisher=United Nations Development Programme|isbn=978-92-1-126442-5|pages=343–346|url=http://hdr.undp.org/sites/default/files/hdr2020.pdf|access-date=December 16, 2020|archive-date=December 15, 2020|archive-url=https://web.archive.org/web/20201215063955/http://hdr.undp.org/sites/default/files/hdr2020.pdf|url-status=live}}</ref> In 2018, Panama was ranked the seventh-most competitive economy in Latin America, according to the [[World Economic Forum]]'s Global Competitiveness Index.<ref>{{Cite web|url=https://wef.ch/2OX9YUm|title=Competitiveness Rankings|website=The Global Competitiveness Report 2018|language=en-US|access-date=March 18, 2019}}</ref> Panama was ranked 82nd in the [[Global Innovation Index]] in 2025.<ref>{{Cite web |title=GII Innovation Ecosystems & Data Explorer 2025 |url=https://www.wipo.int/gii-ranking/en/panama |access-date=2025-10-16 |website=WIPO}}</ref><ref>{{Cite book |last1=Dutta |first1=Soumitra |url=https://www.wipo.int/web-publications/global-innovation-index-2025/en/index.html |title=Global Innovation Index 2025: Innovation at a Crossroads |last2=Lanvin |first2=Bruno |publisher=[[World Intellectual Property Organization]] |year=2025 |isbn=978-92-805-3797-0 |page=19 |language=en |doi=10.34667/tind.58864 |access-date=2025-10-17}}</ref> Covering around 40 percent of its land area, Panama's [[jungle]]s are home to an abundance of tropical plants and animals – some of them [[endemism|found nowhere else]] on Earth.<ref>{{cite news |url=http://news.bbc.co.uk/2/hi/americas/country_profiles/1229332.stm |work=BBC News |title=Country profile: Panama |date=June 30, 2010 |access-date=July 25, 2010 |archive-date=July 2, 2014 |archive-url=https://web.archive.org/web/20140702022612/http://news.bbc.co.uk/2/hi/americas/country_profiles/1229332.stm |url-status=live }}</ref>

Panama is a founding member of the [[United Nations]] and other international organizations such as the [[Organization of American States]], [[Latin American Integration Association|Latin America Integration Association]], [[Group of 77]], [[World Health Organization]], and [[Non-Aligned Movement]].

==Etymology==
The exact origin of the name "Panama" remains uncertain, with several theories proposed.<ref>{{cite web |url=https://www.etymonline.com/word/Panama |title=Panama |language=en |access-date=May 7, 2025 }}</ref>

* [[Sterculia apetala]] ([[Sterculia apetala|Panama tree]]): One theory suggests that the name derives from the Sterculia apetala tree, commonly known as the Panama tree, which is native to the region and holds national significance. This tree was declared the national tree of Panama by Cabinet Decree No. 371 on November 26, 1969.<ref>{{cite web |url=https://places.behindthename.com/name/panama |title=Meaning, origin and history of Panama |language=en |access-date=May 7, 2025 }}</ref><ref>{{Cite web |date=2007-09-15 |title=Árbol Nacional de Panamá: Sterculia apetala |url=https://biota.wordpress.com/2007/09/15/arbol-nacional-de-panama-sterculia-apetala/ |access-date=2025-05-08 |website=Biota Panama |language=es}}</ref>
* "Many butterflies": Another theory posits that "Panama" means "many butterflies" in an indigenous language, possibly [[Cueva language|Cueva]] or another native tongue. This interpretation is linked to the observation that early settlers arrived during August, a time when butterflies are particularly abundant in the area.<ref name=":3">{{Cite web |last=Campbell |first=Mike |title=Meaning, origin and history of the place name Panama |url=https://places.behindthename.com/name/panama/ |access-date=2025-05-08 |website=Behind the Name |language=en}}</ref>
* [[Guna Yala|Guna]] language "bannaba": A further hypothesis is that "Panama" is a [[Hispanicization|Castilianization]] of the Guna word "bannaba," meaning "distant" or "far away."<ref name="PAN">{{cite web|url=http://www.pa/secciones/informacion/significado.html |title=Origen del Nombre Panamá |publisher=República de Panamá |access-date=July 25, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20070214054429/http://www.pa/secciones/informacion/significado.html |archive-date=February 14, 2007}}</ref><ref name=":3" />

A widely recounted legend holds that "Panamá" was the name of a fishing village encountered by [[Spaniards|Spanish colonists]], purportedly meaning "abundance of fish." While the precise location of this village is unknown, the legend is often associated with accounts from Spanish explorer Antonio Tello de Guzmán, who in 1515 described landing at an unnamed indigenous fishing village along the [[Pacific coast]]. Subsequently, in 1517, Spanish lieutenant [[Gaspar de Espinosa]] established a trading post at the site, and in 1519, [[Pedro Arias Dávila]] founded [[Panama City]] there, replacing the earlier settlement of [[Santa María la Antigua del Darién]].<ref name=":4" /><ref>{{Cite web |title=Narrative of the Proceedings of Pedrarias Davila/Narrative of Pascual de Andagoya - Wikisource, the free online library |url=https://en.wikisource.org/wiki/Narrative_of_the_Proceedings_of_Pedrarias_Davila/Narrative_of_Pascual_de_Andagoya |access-date=2025-05-08 |website=en.wikisource.org |language=en}}</ref>

==History==
{{Main|History of Panama}}

===Pre-Columbian<!-- This is NOT a typo. Before Christopher Columbus, not before Colombia --> period===
[[File:Panama Embera0605.jpg|thumb|[[Embera-Wounaan|Embera]] girl dressed for a dance]]
The [[Isthmus of Panama]] was formed about three&nbsp;million years ago when the land bridge between North and South America finally became complete, and plants and animals gradually crossed it in both directions. The existence of the [[isthmus]] affected the dispersal of people, agriculture and technology throughout the Americas from the appearance of the first hunters and collectors to the era of villages and cities.<ref name="Mayo, J 2004">Mayo, J. (2004). ''La Industria prehispánica de conchas marinas en Gran Coclé'', Panamá. Diss. U Complutense de Madrid, pp. 9–10.</ref><ref>Piperno, D. R. (1984). ''The Application of Phytolith Analysis to the Reconstruction of Plant Subsistence and Environments in Prehistoric Panama''. Dissertation, Temple University. Philadelphia, vol. 8 pp. 21–43.</ref>

The earliest discovered artifacts of [[Indigenous peoples of Panama|indigenous peoples]] in Panama include [[Paleo-Indians|Paleo-Indian]] [[projectile point]]s. Later central Panama was home to some of the first [[pottery]]-making in the Americas, for example the cultures at [[Monagrillo (archaeological site)|Monagrillo]], which date back to 2500–1700 BC. These evolved into significant populations best known through their spectacular burials (dating to c. 500–900 AD) at the [[Monagrillo (archaeological site)|Monagrillo]] [[archaeological site]], and their [[Gran Coclé]] style [[polychrome pottery]]. The monumental [[monolith]]ic sculptures at the [[Barriles]] (Chiriqui) site are also important traces of these ancient isthmian cultures.<ref>{{Cite web |title=Exhibition |url=https://researchcomputing.si.edu/exhibitions/stri.php?node=Archaeology_si_2774306 |access-date=2025-05-08 |website=researchcomputing.si.edu}}</ref><ref>{{Cite web |title=Treasures of Sitio Conte and Personal Adornment of the Coclé {{!}} Fashion History Timeline |url=https://fashionhistory.fitnyc.edu/sitio-conte-cocle/ |access-date=2025-05-08 |website=fashionhistory.fitnyc.edu}}</ref>

Before Europeans arrived Panama was widely settled by [[Chibchan languages|Chibchan]], [[Chocoan]], and [[Cueva people|Cueva]] peoples. The largest group were the Cueva (whose specific language affiliation is poorly documented). The size of the [[Indigenous peoples of Panama|indigenous]] population of the isthmus at the time of European colonization is uncertain. Estimates range as high as two million people, but more recent studies place that number closer to 200,000. Archaeological finds and testimonials by early European explorers describe diverse native isthmian groups exhibiting cultural variety and suggesting people developed{{clarify|date=August 2016|reason=Is this an anthropological term?}} by regular regional routes of commerce. [[Austronesians]] had a trade network to Panama as there is evidence of [[coconuts]] reaching the Pacific coast of Panama from the [[Philippines]] in [[Columbian Exchange|Precolumbian]] times.<ref>{{Cite journal |last1=Baudouin |first1=Luc |last2=Gunn |first2=Bee |last3=Olsen |first3=Kenneth |date=January 2014 |title=The presence of coconut in southern Panama in pre-Columbian times: clearing up the confusion |journal=Annals of Botany |volume=113 |issue=1 |pages=1–5 |doi=10.1093/aob/mct244 |pmid=24227445 |pmc=3864718  | issn=0305-7364 }}</ref>

When Panama was colonized, the indigenous peoples fled into the forest and nearby islands. Scholars believe that [[Infection|infectious disease]] was the primary cause of the population decline of the natives. The indigenous peoples had no [[Adaptive immune system|acquired immunity]] to diseases such as [[smallpox]] which had been chronic in [[Eurasia]]n populations for centuries.<ref>Hays, J. N. (2005). ''[https://archive.org/details/epidemicspandemi0000hays/page/82 Epidemics and pandemics: their impacts on human history]'', ABC-CLIO, pp. 82–83, {{ISBN|1-85109-658-2}}</ref><ref>{{Cite book |last = Austin Alchon |first = Suzanne |title = A pest in the land: new world epidemics in a global perspective |url = https://books.google.com/books?id=YiHHnV08ebkC&pg=PA67 |publisher = University of New Mexico Press |date= 2003 |pages = 67–74 |isbn = 0-8263-2871-7}}</ref><ref>{{Cite web |title=Why Blame Smallpox? The Death of the Inca Huayna Capac and the Demographic Destruction of Ancient Peru (Tawantinsuyu) |url=https://users.pop.umn.edu/~rmccaa/aha2004/whypox.htm? |access-date=2025-05-08 |website=users.pop.umn.edu}}</ref>

===Conquest to 1799===
[[File:Balboa südsee.jpg|thumb|upright|[[Vasco Núñez de Balboa]], a recognized and popular figure of Panamanian history]]
[[File:New Caledonia in Darien.jpg|thumb|"New Caledonia", the ill-fated Scottish [[Darien scheme]] colony in the Bay of Caledonia, west of the [[Gulf of Darién]]]]
[[Rodrigo de Bastidas]] sailed westward from [[Venezuela]] in 1501 in search of gold, and became the first European to explore the isthmus of Panama. A year later, [[Christopher Columbus]] visited the isthmus, and established a short-lived settlement in the province of [[Darién Province|Darien]].<ref>Bushnell, David, Woodward, Ralph Lee. "Central America". Encyclopedia Britannica, 7 May. 2025, https://www.britannica.com/place/Central-America. Accessed 8 May 2025</ref> [[Vasco Núñez de Balboa]]'s tortuous trek from the Atlantic to the Pacific in 1513 demonstrated that the isthmus was indeed the path between the seas, and Panama quickly became the crossroads and marketplace of Spain's empire in the [[New World]].<ref>Keen, Benjamin. "Vasco Núñez de Balboa". Encyclopedia Britannica, 8 Jan. 2025, https://www.britannica.com/biography/Vasco-Nunez-de-Balboa. Accessed 8 May 2025</ref> King [[Ferdinand II of Aragon|Ferdinand II]] assigned [[Pedro Arias Dávila]] as Royal Governor. He arrived in June 1514 with 19 vessels and 1,500 men. In 1519, Dávila founded [[Panama City]].<ref name=":4">{{cite web|title=Pedro Arias Dávila|url=https://www.britannica.com/biography/Pedro-Arias-Davila|website=Encyclopedia Britannica|access-date=April 4, 2021|archive-date=April 15, 2021|archive-url=https://web.archive.org/web/20210415203557/https://www.britannica.com/biography/Pedro-Arias-Davila|url-status=live}}</ref> Gold and silver were brought by ship from South America, hauled across the isthmus, and loaded aboard ships for Spain. The route became known as the Camino Real, or Royal Road, although it was more commonly known as Camino de Cruces (Road of Crosses) because of the number of gravesites along the way.<ref>{{Cite web |last=Heller |first=Carolyn |date=2025-03-31 |title=Hiking the Camino Real de Panamá, a Historic Sea-to-Sea Trade Route |url=https://www.cntraveler.com/story/hiking-the-camino-real-de-panama |access-date=2025-05-08 |website=Condé Nast Traveler |language=en-US}}</ref> At 1520 the Genoese controlled the port of Panama. The Genoese obtained a concession from the Spanish to exploit the port of Panama mainly for the slave trade, until the destruction of the primeval city in 1671.<ref name="Genoa">{{Cite web |title=I Genovesi d'Oltremare i primi coloni moderni |url=http://www.giustiniani.info/oltremare.html |access-date=2020-08-05 |website=www.giustiniani.info |archive-date=2020-02-23 |archive-url=https://web.archive.org/web/20200223140429/http://www.giustiniani.info/oltremare.html |url-status=live }}</ref><ref>{{Cite web |title=15. Casa de los Genoveses - Patronato Panamá Viejo |url=http://www.patronatopanamaviejo.org/ppv2014/es/el-sitio-arqueologico/los-monumentos/mapa-de-monumentos/15-casa-de-los-genoveses |access-date=2020-08-05 |website=www.patronatopanamaviejo.org |archive-date=2017-09-11 |archive-url=https://web.archive.org/web/20170911025455/http://www.patronatopanamaviejo.org/ppv2014/es/el-sitio-arqueologico/los-monumentos/mapa-de-monumentos/15-casa-de-los-genoveses }}</ref> In the meantime in 1635 Don [[Sebastián Hurtado de Corcuera]], the then governor of Panama, had recruited [[Republic of Genoa|Genoese]], Peruvians, and Panamanians, as soldiers to wage war against Muslims in the Philippines and to found the city [[Zamboanga City|of Zamboanga]].<ref>[http://www.zamboanga.com/html/history_1634_moro_attacks.htm "SECOND BOOK OF THE SECOND PART OF THE CONQUESTS OF THE FILIPINAS ISLANDS, AND CHRONICLE OF THE RELIGIOUS OF OUR FATHER, ST. AUGUSTINE"] {{Webarchive|url=https://web.archive.org/web/20210508103044/https://www.zamboanga.com/html/history_1634_moro_attacks.htm |date=May 8, 2021 }} (Zamboanga City History)
"He (Governor Don Sebastían Hurtado de Corcuera) brought a great reënforcements of soldiers, many of them from Perú, as he made his voyage to Acapulco from that kingdom."</ref>

Panama was under [[Spanish Empire|Spanish rule]] for almost 300 years (1538–1821), and became part of the [[Viceroyalty of Peru]], along with all other Spanish possessions in South America. From the outset, Panamanian identity was based on a sense of "geographic destiny", and Panamanian fortunes fluctuated with the geopolitical importance of the isthmus. The colonial experience spawned Panamanian nationalism and a racially complex and highly stratified society, the source of internal conflicts that ran counter to the unifying force of nationalism.<ref>{{Cite book|title=La inmigración prohibida en Panamá y sus prejuicios raciales|last=Arango Durling |trans-title=Prohibited immigration in Panamá and its racial prejudices |first=Virginia |publisher=Publipan |date=1999 |lccn=2001388757 |location=Panamá  |language=es }}</ref>

Spanish authorities had little control over much of the territory of Panama. Large sections managed to resist conquest and missionization until late in the colonial era. Because of this, indigenous people of the area were often referred to as "indios de guerra" (war Indians). However, Panama was important to Spain strategically because it was the easiest way to ship silver mined in Peru to Europe. Silver cargoes were landed on the west coast of Panama and then taken overland to [[Portobelo, Colón|Portobello]] or [[Nombre de Dios, Colón|Nombre de Dios]] on the Caribbean side of the isthmus for further shipment. Aside from the European route, there was also an Asian-American route, which led to traders and adventurers carrying silver from [[Peru]] going over land through Panama to reach Acapulco, Mexico before sailing to Manila, Philippines using the famed [[Manila galleon]]s.<ref>[https://www.academia.edu/44625493/Connecting_China_with_the_Pacific_World Connecting China with the Pacific World By Angela Schottenhammer] {{Webarchive|url=https://web.archive.org/web/20210527045556/https://www.academia.edu/44625493/Connecting_China_with_the_Pacific_World |date=May 27, 2021 }}(2019) (Page 144–145)</ref> In 1579, the royal monopoly that Acapulco, Mexico had on trading with Manila, Philippines was relaxed and Panama was assigned as another port that was able to trade directly with Asia.<ref name="Fisher1997">{{cite book|author=John Robert Fisher|title=The Economic Aspects of Spanish Imperialism in America, 1492-1810|url=https://books.google.com/books?id=MRI-LiWuJh4C&pg=PA65|date=1997|publisher=Liverpool University Press|isbn=978-0-85323-552-1|pages=65–66}}</ref>

Because of incomplete Spanish control, the Panama route was vulnerable to attack from pirates (mostly Dutch and English), and from "new world" Africans called [[cimarron people (Panama)|cimarrons]] who had freed themselves from enslavement and lived in communes or ''palenques'' around the Camino Real in Panama's Interior, and on some of the islands off Panama's Pacific coast. One such famous community amounted to a small kingdom under [[Bayano]], which emerged in the 1552 to 1558 period. Sir [[Francis Drake]]'s famous raids on Panama in 1572–73 and [[John Oxenham]]'s crossing to the Pacific Ocean were aided by Panama cimarrons, and Spanish authorities were only able to bring them under control by making an alliance with them that guaranteed their freedom in exchange for military support in 1582.<ref>{{cite journal|last=Pike |first= Ruth |title=Black Rebels: Cimarrons in Sixteenth Century Panama|journal=The Americas|volume= 64|issue=2 |date=2007|pages= 243–66|doi=10.1353/tam.2007.0161|s2cid=143773521}}</ref><ref>{{Cite web |title=Panama History |url=https://www.soulofamerica.com/international/panama/panama-history/ |access-date=2025-05-08 |website=Soul Of America |language=en-US}}</ref>

The following elements helped define a distinctive sense of autonomy and of regional or national identity within Panama well before the rest of the colonies: the prosperity enjoyed during the first two centuries (1540–1740) while contributing to colonial growth; the placing of extensive regional judicial authority (Real Audiencia) as part of its jurisdiction; and the pivotal role it played at the height of the Spanish Empire – the first modern global empire.<ref>{{Cite web |title=Antique Map - Anonymus - Ansichten von der Landenge von Panama |url=https://www.asommer.de/en/karte/ansichten-von-der-landenge-von-panama/ |access-date=2025-05-08 |website=Antique Maps Adina Sommer |language=en-US}}</ref>

Panama was the site of the ill-fated [[Darien scheme]], which set up a [[Kingdom of Scotland|Scottish]] colony in the region in 1698.<ref>{{Cite web |title=The Darien Scheme |url=https://www.historic-uk.com/HistoryUK/HistoryofScotland/The-Darien-Scheme/ |access-date=2025-05-08 |website=Historic UK |language=en-GB}}</ref><ref>{{Cite web |title=Darien Scheme: Scotland's ill-fated colony in Panama |url=https://trulyedinburgh.com/scotland-history/darien-scheme/ |access-date=2025-05-08 |website=Truly Edinburgh |language=en-GB}}</ref><ref>{{Cite web |title=Founding of the Darien Colony {{!}} History Today |url=https://www.historytoday.com/archive/founding-darien-colony |access-date=2025-05-08 |website=www.historytoday.com}}</ref> This failed for a number of reasons, and the ensuing debt contributed to the [[Acts of Union 1707|union of England and Scotland in 1707]].<ref>"[http://www.historic-uk.com/HistoryUK/Scotland-History/DarienScheme.htm The Darien Scheme – The Fall of Scotland] {{Webarchive|url=https://web.archive.org/web/20120205194052/http://www.historic-uk.com/HistoryUK/Scotland-History/DarienScheme.htm |date=February 5, 2012 }}", Historic UK</ref><ref>{{Cite news |last=Carroll |first=Rory |date=2007-09-10 |title=The sorry story of how Scotland lost its 17th century empire |url=https://www.theguardian.com/uk/2007/sep/11/britishidentity.past |access-date=2025-05-08 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref>

In 1671, the [[privateer]] [[Henry Morgan]], licensed by the English government, [[Henry Morgan's Panama expedition|sacked and burned]] the city of [[Panamá Viejo|Panama]] – the second most important city in the Spanish New World at the time. In 1717 the [[viceroyalty of New Granada]] (northern South America) was created in response to other Europeans trying to take Spanish territory in the Caribbean region. The Isthmus of Panama was placed under its jurisdiction. However, the remoteness of New Granada's capital, [[Santa Fe de Bogotá]] (the modern capital of [[Colombia]]) proved a greater obstacle than the Spanish crown anticipated as the authority of New Granada was contested by the seniority, closer proximity, and previous ties to the [[viceroyalty of Peru]] and even by Panama's own initiative. This uneasy relationship between Panama and Bogotá would persist for centuries.<ref>{{Cite web |title=The Legendary Captain Morgan Raids Panama |url=https://www.thoughtco.com/captain-morgan-and-sack-of-panama-2136368 |access-date=2025-05-08 |website=ThoughtCo |language=en}}</ref><ref>The Editors of Encyclopaedia Britannica. "Viceroyalty of New Granada". Encyclopedia Britannica, 1 May. 2023, https://www.britannica.com/place/Viceroyalty-of-New-Granada. Accessed 8 May 2025.</ref><ref>{{Cite web |title=New Granada, Viceroyalty of {{!}} Encyclopedia.com |url=https://www.encyclopedia.com/humanities/encyclopedias-almanacs-transcripts-and-maps/new-granada-viceroyalty |access-date=2025-05-08 |website=www.encyclopedia.com}}</ref>

In 1744, Bishop Francisco Javier de Luna Victoria DeCastro established the [[College of San Ignacio de Loyola]] and on June 3, 1749, founded La Real y Pontificia Universidad de San Javier.<ref name=":5">{{Cite web |title=La universidad en la colonia |url=https://www.metrolibre.com/opinion/la-universidad-en-la-colonia-LBML221192 |access-date=2025-05-08 |website=www.metrolibre.com |language=es-PA}}</ref><ref name=":6">{{Cite web |title=Jesuits in Panama |url=https://www.manresa-sj.org/stamps/2_Panama.htm |access-date=2025-05-08 |website=www.manresa-sj.org}}</ref><ref name=":7">{{Cite web |title=Bishop Francisco Javier de Luna Victoria y Castro [Catholic-Hierarchy] |url=https://www.catholic-hierarchy.org/bishop/bdeluna.html |access-date=2025-05-08 |website=www.catholic-hierarchy.org}}</ref> By this time, however, Panama's importance and influence had become insignificant as Spain's power dwindled in Europe and advances in navigation technique increasingly permitted ships to round [[Cape Horn]] in order to reach the Pacific. While the Panama route was short it was also labor-intensive and expensive because of the loading and unloading and laden-down trek required to get from the one coast to the other.<ref name=":5" /><ref name=":6" /><ref name=":7" />

====1800s====
{{More citations needed section|date=May 2025}}[[File:Arco chato.jpg|thumb|[[Santo Domingo Church]]]]
As the [[Spanish American wars of independence]] were heating up all across Latin America, Panama City was preparing for independence; however, their plans were accelerated by the unilateral Grito de La Villa de Los Santos (Cry From the Town of Saints), issued on November 10, 1821, by the residents of [[Azuero Peninsula|Azuero]] without backing from Panama City to declare their separation from the Spanish Empire. In both [[Veraguas]] and the capital this act was met with disdain, although on differing levels. To Veraguas, it was the ultimate act of treason, while to the capital, it was seen as inefficient and irregular, and furthermore forced them to accelerate their plans.

Nevertheless, the Grito was a sign, on the part of the residents of Azuero, of their antagonism toward the independence movement in the capital. Those in the capital region in turn regarded the Azueran movement with contempt, since the separatists in Panama City believed that their counterparts in Azuero were fighting not only for independence from Spain, but also for their right to self-rule apart from Panama City once the Spaniards were gone.

It was seen as a risky move on the part of Azuero, which lived in fear of Colonel [[History of Panama#José de Fábrega|José Pedro Antonio de Fábrega y de las Cuevas]] (1774–1841). The colonel was a staunch loyalist and had all of the isthmus' military supplies in his hands. They feared quick retaliation and swift retribution against the separatists.

What they had counted on, however, was the influence of the separatists in the capital. Ever since October 1821, when the former Governor General, [[Juan de la Cruz Mourgeón|Juan de la Cruz Murgeón]], left the isthmus on a campaign in [[Quito]] and left a colonel in charge, the separatists had been slowly converting Fábrega to the separatist side. So, by November 10, Fábrega was now a supporter of the independence movement. Soon after the separatist declaration of Los Santos, Fábrega convened every organization in the capital with separatist interests and formally declared the city's support for independence. No military repercussions occurred because of skillful bribing of royalist troops.

===Post-colonial Panama===
[[File:Panama canal cartoon 1903.jpg|thumb|1903 political cartoon. The US government, working with separatists in Panama, engineered a [[Separation of Panama from Colombia|Panamanian declaration of independence]] from [[Colombia]], then sent US warships and marines to Panama to prevent Colombian intervention.<ref name="countrystudies"/>]]
{{See also|Separation of Panama from Colombia|Hay–Bunau-Varilla Treaty|History of Panama (1964–1977)}}
[[File:Roosevelt and the Canal.JPG|thumb|US President [[Theodore Roosevelt]] sitting on a steam shovel at the Panama Canal, 1906]]
In the 80 years following independence from Spain, Panama was a [[Subdivisions of Gran Colombia|subdivision of Gran Colombia]], after voluntarily joining the country at the end of 1821. It then became part of the [[Republic of New Granada]] in 1831 and was divided into several [[Provinces of the Republic of New Granada|provinces]]. In 1855, the autonomous [[Panama State|State of Panama]] was created within the Republic out of the New Granada provinces of Panama, Azuero, Chiriquí, and Veraguas. It continued as a state in the [[Granadine Confederation]] (1858–1863) and [[United States of Colombia]] (1863–1886). The [[Colombian Constitution of 1886|1886 constitution]] of the modern Republic of [[Colombia]] created a [[Panama Department (1886)|new Panama Department]].

The people of the isthmus made over 80 attempts to secede from Colombia. They came close to success in 1831, then again during the [[Thousand Days' War]] of 1899–1902, understood among Indigenous Panamanians as a struggle for land rights under the leadership of Victoriano Lorenzo.<ref>{{cite book|last1=Müller-Schwarze|first1=Nina K.|title=The Blood of Victoriano Lorenzo: An Ethnography of the Cholos of Northern Coclé Province.|date=2015|publisher=McFarland Press|location=Jefferson, North Carolina}}</ref>

The US intent to influence the area, especially the Panama Canal's construction and control, led to the [[secession of Panama from Colombia]] in 1903 and its political independence. When the [[Senate of Colombia]] rejected the [[Hay–Herrán Treaty]] on January 22, 1903, the United States decided to support and encourage the Panamanian secessionist movement.<ref>{{cite web |url=http://www.banrepcultural.org/node/86421 |title=Separación de Panamá: la historia desconocida |publisher=banrepcultural.org |access-date=April 9, 2016 |archive-date=January 16, 2018 |archive-url=https://web.archive.org/web/20180116174922/http://www.banrepcultural.org/node/86421 |url-status=dead }}</ref><ref name="countrystudies">{{cite web|date = 2009|url = http://countrystudies.us/panama/8.htm|title = The 1903 Treaty and Qualified Independence|publisher = [[US Library of Congress]]|access-date = May 1, 2009|archive-date = October 11, 2011|archive-url = https://web.archive.org/web/20111011225556/http://countrystudies.us/panama/8.htm|url-status = live}}</ref>

In November 1903, Panama, tacitly supported by the United States, proclaimed its independence<ref>{{cite web |url=http://www.banrepcultural.org/blaavirtual/revistas/credencial/junio2004/panama%20ultimo.htm |title=Panamá: el último año |publisher=banrepcultural.org |access-date=April 9, 2016 |archive-date=October 9, 2017 |archive-url=https://web.archive.org/web/20171009021454/http://www.banrepcultural.org/blaavirtual/revistas/credencial/junio2004/panama%20ultimo.htm |url-status=dead }}</ref> and concluded the [[Hay–Bunau-Varilla Treaty]] with the United States without the presence of a single Panamanian. [[Philippe Bunau-Varilla]], a French engineer and lobbyist represented Panama even though Panama's president and a delegation had arrived in New York to negotiate the treaty. Bunau-Varilla was a shareholder in a French company (the ''Compagnie Nouvelle du Canal de Panama''), which had acquired the rights of the original French company which had gone bankrupt in 1889.{{sfn|McCullough|1977|pp=276-282}} The treaty was quickly drafted and signed the night before the Panamanian delegation arrived in Washington. The treaty granted rights to the United States "as if it were sovereign" in a [[Panama Canal Zone|zone]] roughly {{convert|10|mi|km|order=flip|abbr=on}} wide and {{convert|50|mi|km|order=flip|abbr=on}} long. In that zone, the US would build a canal, then administer, fortify, and defend it "in perpetuity".

[[File:Panama Canal under construction, 1907.jpg|thumb|Construction work on the [[Gaillard Cut]] of the Panama Canal, 1907]]

In 1914, the United States completed the existing {{convert|83|km||adj=mid|abbr=off|-long|sp=us}} canal.

Because of the strategic importance of the canal during [[World War II]], the US extensively fortified access to it.<ref>{{Cite web |title=Security and Defense of the Panama Canal, 1903-2000 |url=https://ufdc.ufl.edu/AA00047733/00001 |access-date=2025-01-30 |website=ufdc.ufl.edu |archive-date=January 30, 2025 |archive-url=https://web.archive.org/web/20250130202844/https://ufdc.ufl.edu/AA00047733/00001 |url-status=live }}</ref>

From 1903 to 1968, Panama was a [[constitutional democracy]] dominated by a commercially oriented [[oligarchy]]. During the 1950s, the Panamanian military began to challenge the oligarchy's political hegemony. The early 1960s saw also the beginning of sustained pressure in Panama for the renegotiation of the [[Hay–Bunau-Varilla Treaty]], including riots that broke out in early 1964, resulting in widespread looting and dozens of deaths, and the evacuation of the American embassy.<ref>{{Cite web|url=https://adst.org/2016/07/panama-riots-1964-beginning-end-canal/|title=The Panama Riots of 1964: The Beginning of the End for the Canal|date=July 19, 2016|access-date=November 12, 2018|archive-url=https://web.archive.org/web/20181113025549/https://adst.org/2016/07/panama-riots-1964-beginning-end-canal/|archive-date=November 13, 2018|url-status=dead}}</ref>

Amid negotiations for the Robles–Johnson treaty, Panama held [[1968 Panamanian general election|elections in 1968]]. The candidates were:<ref name="Pizzurno Gelós 1989">Pizzurno Gelós, Patricia and Celestino Andrés Araúz (1996) ''Estudios sobre el Panamá Republicano (1903–1989)''. Colombia: Manfer S.A.</ref>
* Dr. [[Arnulfo Arias]] Madrid, Unión Nacional (National Union)
* Antonio González Revilla, [[People's Party (Panama)|Democracia Cristiana]] (Christian Democrats)
* Engr. David Samudio, Alianza del Pueblo (People's Alliance), who had the government's support.

Arias Madrid was declared the winner of elections that were marked by violence and accusations of fraud against Alianza del Pueblo. On October 1, 1968, Arias Madrid took office as president of Panama, promising to lead a government of "national union" that would end the reigning corruption and pave the way for a new Panama. A week and a half later, on October 11, 1968, the National Guard (Guardia Nacional) [[1968 Panamanian coup d'état|ousted]] Arias and initiated the downward spiral that would culminate with the United States' invasion in 1989. Arias, who had promised to respect the hierarchy of the National Guard, broke the pact and started a large restructuring of the Guard. To preserve the Guard's and his vested interests, Lieutenant Colonel [[Omar Torrijos]] Herrera and Major Boris Martínez commanded another military coup against the government.<ref name="Pizzurno Gelós 1989"/>

The military justified itself by declaring that Arias Madrid was trying to install a dictatorship, and promised a return to constitutional rule. In the meantime, the Guard began a series of populist measures that would gain support for the coup. Among them were:
* Price freezing on food, medicine and other goods<ref>Pizzurno Gelós, Patricia and Celestino Andrés Araúz (1996) ''Estudios sobre el Panamá Republicano (1903–1989)''. Colombia: Manfer S.A., p. 529.</ref> until January 31, 1969
* rent level freeze
* legalization of the permanence of squatting families in boroughs surrounding the historic site of Panama Viejo<ref name="Pizzurno Gelós 1989"/>
Parallel to this, the military began a policy of repression against the opposition, who were labeled communists. The military appointed a Provisional Government Junta that was to arrange new elections. However, the National Guard would prove to be very reluctant to abandon power and soon began calling itself ''El Gobierno Revolucionario'' (The Revolutionary Government).

====Post-1970====
[[File:Omar Torrijos with Panamanian farmers.jpg|thumb|[[Omar Torrijos]] (right) with farmers in the Panamanian countryside. The Torrijos government was well known for its policies of [[land redistribution]].]]

Under [[Omar Torrijos]]'s control, the military transformed the political and economic structure of the country, initiating massive coverage of social security services and expanding public education.

The constitution was changed in 1972. To reform the constitution, the military created a new organization, the Assembly of Corregimiento Representatives, which replaced the National Assembly. The new assembly, also known as the Poder Popular (Power of the People), was composed of 505 members selected by the military with no participation from political parties, which the military had eliminated. The new constitution proclaimed [[Omar Torrijos]] as the Maximum Leader of the Panamanian Revolution, and conceded him unlimited power for six years, although, to keep a façade of constitutionality, [[Demetrio B. Lakas]] was appointed president for the same period.<ref name="Pizzurno Gelós 1989"/>

In 1981, Torrijos died in a plane crash.<ref>{{Cite news|url=https://www.nytimes.com/1981/08/02/obituaries/panama-leader-killed-in-crash-in-bad-weather.html|title=PANAMA LEADER KILLED IN CRASH IN BAD WEATHER|last=International|first=United Press|work=The New York Times|date=August 2, 1981|access-date=June 1, 2018|language=en|archive-date=August 17, 2018|archive-url=https://web.archive.org/web/20180817120658/https://www.nytimes.com/1981/08/02/obituaries/panama-leader-killed-in-crash-in-bad-weather.html|url-status=live}}</ref> Torrijos' death altered the tone of Panama's political evolution. Despite the [[1983 Panamanian constitutional referendum|1983 constitutional amendments]] which proscribed a political role for the military, the [[Panama Defense Forces|Panama Defense Force]] (PDF), as they were then known, continued to dominate Panamanian political life. By this time, General [[Manuel Noriega|Manuel Antonio Noriega]] was firmly in control of both the PDF and the civilian government.{{when|date=May 2016}}

[[File:Jimmy Carter and General Omar Torrijos signing the Panama Canal Treaty.jpg|thumb|US President [[Jimmy Carter]] shakes hands with General [[Omar Torrijos]] after signing the [[Torrijos–Carter Treaties|Panama Canal Treaties]] (September 7, 1977).]]
In the [[1984 Panamanian general election|1984 elections]], the candidates were:
* [[Nicolás Ardito Barletta Vallarino]], supported by the military in a union called UNADE
* Arnulfo Arias Madrid, for the opposition union ADO
* ex-General [[Rubén Darío Paredes]], who had been forced to an early retirement by Manuel Noriega, running for the Partido Nacionalista Popular (PAP; "Popular Nationalist Party")
* Carlos Iván Zúñiga, running for the Partido Acción Popular (PAPO; Popular Action Party)
Barletta was declared the winner of elections that had been considered to be fraudulent. Barletta inherited a country in economic ruin and hugely indebted to the [[International Monetary Fund]] and the [[World Bank]]. Amid the economic crisis and Barletta's efforts to calm the country's creditors, street protests arose, and so did military repression.

Meanwhile, Noriega's regime had fostered a well-hidden criminal economy that operated as a parallel source of income for the military and their allies, providing revenues from drugs and [[money laundering]]. Toward the end of the military dictatorship, a new wave of Chinese migrants arrived on the isthmus in the hope of migrating to the United States. The smuggling of Chinese became an enormous business, with revenues of up to 200 million dollars for Noriega's regime (see Mon 167).<ref>Mon Pinzón, Ramón Arturo (1979). ''Historia de la Migración China Durante la Construcción del Ferrocarril de Panamá''. Masters Thesis. México: El Colegio de México.</ref>

The military dictatorship assassinated or tortured more than one hundred Panamanians and forced at least a hundred more dissidents into exile. (see Zárate 15).<ref>Zárate, Abdiel (November 9, 2003). "Muertos y desaparecidos durante la época militar." Extra-centennial issue of ''La Prensa''.</ref> Noriega's regime was supported by the United States and it began playing a double role in Central America. While the [[Contadora group]], an initiative launched by the foreign ministers of various Latin American nations including Panama's, conducted diplomatic efforts to achieve peace in the region, Noriega supplied Nicaraguan [[Contras]] and other guerrillas in the region with weapons and ammunition on behalf of the CIA.<ref name="Pizzurno Gelós 1989"/>

On June 6, 1987, the recently retired Colonel Roberto Díaz Herrera, resentful that Noriega had broken the agreed-upon "Torrijos Plan" of succession that would have made him the chief of the military after Noriega, decided to denounce the regime. He revealed details of electoral fraud,<ref>{{Cite news |last=Preston |first=Julia |date=July 6, 1987 |title=PANAMANIAN PRESIDENT CALLS FOR PROBE |language=en-US |newspaper=Washington Post |url=https://www.washingtonpost.com/archive/politics/1987/07/06/panamanian-president-calls-for-probe/34559ca5-6139-4669-8ff5-dcd056b9b7ca/ |access-date=March 22, 2022 |issn=0190-8286}}</ref> accused Noriega of planning Torrijos's death and declared that Torrijos had received 12 million dollars from the Shah of Iran for giving the exiled Iranian leader asylum. He also accused Noriega of the assassination by decapitation of then-opposition leader, Dr. [[Hugo Spadafora]].<ref name="Pizzurno Gelós 1989"/><ref>{{Cite news |date=December 21, 1989 |title=Fighting in Panama; Panama's Troubled Past |language=en-US |work=The New York Times |url=https://www.nytimes.com/1989/12/21/world/fighting-in-panama-panama-s-troubled-past.html |access-date=March 22, 2022 |issn=0362-4331 |archive-date=March 22, 2022 |archive-url=https://web.archive.org/web/20220322030333/https://www.nytimes.com/1989/12/21/world/fighting-in-panama-panama-s-troubled-past.html |url-status=live }}</ref>

On the night of June 9, 1987, the Cruzada Civilista ("Civic Crusade") was created{{where|date=May 2016}} and began organizing actions of civil disobedience. The Crusade called for a general strike. In response, the military suspended constitutional rights and declared a state of emergency in the country. On July 10, the [[Civic Crusade]] called for a massive demonstration that was violently repressed by the "Dobermans", the military's special riot control unit. That day, later known as El Viernes Negro ("Black Friday"), left many people injured and killed.<ref>{{Cite web |last=Becker |first=Meghan |date=March 28, 2010 |title=Panamanians campaign to overthrow dictator (The Civic Crusade), 1987-1989 |url=https://nvdatabase.swarthmore.edu/content/panamanians-campaign-overthrow-dictator-civic-crusade-1987-1989 |access-date=April 30, 2022 |website=Swarthmore.edu |publisher=Swarthmore |archive-date=May 13, 2021 |archive-url=https://web.archive.org/web/20210513215929/https://nvdatabase.swarthmore.edu/content/panamanians-campaign-overthrow-dictator-civic-crusade-1987-1989 |url-status=live }}</ref>

United States President [[Ronald Reagan]] began a series of sanctions against the military regime. The United States froze economic and military assistance to Panama in the middle of 1987 in response to the domestic political crisis in Panama and an attack on the US embassy. The sanctions failed to oust Noriega, but severely hurt Panama's economy. Panama's gross domestic product (GDP) declined almost 25 percent between 1987 and 1989.<ref name="Acosta, Coleen 2008">Acosta, Coleen (October 24, 2008). [https://web.stanford.edu/class/e297a/Panama%20Imperialism%20and%20Struggle.htm "Iraq: a Lesson from Panama Imperialism and Struggle for Sovereignty"] {{Webarchive|url=https://web.archive.org/web/20211003220042/https://web.stanford.edu/class/e297a/Panama%20Imperialism%20and%20Struggle.htm |date=October 3, 2021 }}. ''Journals of the Stanford Course on Prejudice and Poverty''.</ref>

On February 5, 1988, General Manuel Antonio Noriega was accused of drug trafficking by federal juries in Tampa and Miami. [[Human Rights Watch]] wrote in its 1989 report: "Washington turned a blind eye to abuses in Panama for many years until concern over drug trafficking prompted indictments of the general [Noriega] by two grand juries in Florida in February 1988".<ref name="Panama">[https://www.hrw.org/reports/1989/WR89/Panama.htm "Panama"] {{Webarchive|url=https://web.archive.org/web/20170113164637/https://www.hrw.org/reports/1989/WR89/Panama.htm |date=January 13, 2017 }}. ''Human Rights Watch World Report 1989''. hrw.org</ref>

In April 1988, US President Ronald Reagan invoked the [[International Emergency Economic Powers Act]], freezing Panamanian government assets in all US organizations. In May 1989 Panamanians voted overwhelmingly for the anti-Noriega candidates. The Noriega regime promptly annulled the election and embarked on a new round of repression.

[[File:Panama clashes 1989.JPEG|thumb|The aftermath of urban warfare during the [[United States invasion of Panama|US invasion of Panama]], 1989]]

====US invasion (1989)====
{{Further|United States invasion of Panama}}

The United States invaded Panama on December 20, 1989, codenamed [[Operation Just Cause]]. The U.S. stated the operation was "necessary to safeguard the lives of U.S. citizens in Panama, defend democracy and human rights, combat drug trafficking, and secure the neutrality of the Panama Canal as required by the [[Torrijos–Carter Treaties]]".<ref>''New York Times''. A Transcript of President Bush's Address on the Decision to Use Force, December 21, 1989. Web. January 2, 2008.</ref> The US reported 23 servicemen killed and 324 wounded, with the number of Panamanian soldiers killed estimated at 450. The estimates for civilians killed in the conflict ranges from 200 to 4,000. The United Nations put the Panamanian civilian death toll at 500, [[Americas Watch]] estimated 300, the United States gave a figure of 202 civilians killed and former US attorney general [[Ramsey Clark]] estimated 4,000 deaths.<ref>{{Cite news |url=https://www.nytimes.com/1990/04/01/world/panama-and-us-strive-to-settle-on-death-toll.html |title=Panama and U.S. Strive To Settle on Death Toll |last=Rohter |first=Larry |work=The New York Times |date=April 1990 |access-date=April 15, 2018 |archive-date=August 15, 2018 |archive-url=https://web.archive.org/web/20180815143126/https://www.nytimes.com/1990/04/01/world/panama-and-us-strive-to-settle-on-death-toll.html |url-status=live }}</ref> It represented the largest United States military operation since the Vietnam War.<ref>Cajar Páez, Aristides. "La invasion." Extra-centennial issue of La Prensa, Nov.9 (2003): 22. Print.</ref> The number of US civilians (and their dependents), who had worked for the [[Panama Canal Authority|Panama Canal Commission]] and the US military, and were killed by the Panamanian Defense Forces, has never been fully disclosed.

On December 29, the [[United Nations General Assembly]] approved a resolution calling the intervention in Panama a "flagrant violation of international law and of the independence, sovereignty and territorial integrity of the States".<ref>{{Cite web|url=https://www.un.org/documents/ga/res/44/a44r240.htm|title=A/RES/44/240. Effects of the military intervention by the United States of America in Panama on the situation in Central America|website=UN.org|access-date=June 29, 2017|archive-date=October 24, 2017|archive-url=https://web.archive.org/web/20171024215048/http://www.un.org/documents/ga/res/44/a44r240.htm|url-status=live}}</ref> A similar resolution was vetoed in the [[United Nations Security Council|Security Council]] by the United States, the United Kingdom, and France.<ref>{{Cite news|url=https://www.nytimes.com/1989/12/24/world/fighting-panama-united-nations-security-council-condemnation-invasion-vetoed.html|title=Fighting in Panama: United Nations; Security Council Condemnation of Invasion Vetoed|first1=Paul|last1=Lewis|first2=Special to The New York|last2=Times|newspaper=The New York Times|date=December 24, 1989|access-date=February 11, 2017|archive-date=December 8, 2016|archive-url=https://web.archive.org/web/20161208053954/http://www.nytimes.com/1989/12/24/world/fighting-panama-united-nations-security-council-condemnation-invasion-vetoed.html|url-status=live}}</ref> Noriega was captured and flown to Miami to be tried. The conflict ended on January 31, 1990.

The urban population, many living below the poverty level, was greatly affected by the 1989 intervention. As pointed out in 1995 by a UN Technical Assistance Mission to Panama, the fighting displaced 20,000 people. The most heavily affected district was the [[El Chorrillo]] area of Panama City, where several blocks of apartments were completely destroyed.<ref>{{cite web|url=http://www.roatan.com/About-Locations/Panama.pdf|title=Panama |archive-url=https://web.archive.org/web/20160304103819/http://www.roatan.com/About-Locations/Panama.pdf|archive-date=March 4, 2016}}</ref><ref>{{Cite web|url=https://topdocumentaryfilms.com/the-panama-deception/|title=The Panama Deception|via=topdocumentaryfilms.com|access-date=May 5, 2019|archive-date=May 5, 2019|archive-url=https://web.archive.org/web/20190505070320/https://topdocumentaryfilms.com/the-panama-deception/|url-status=live}}</ref><ref>Blum, William. Killing Hope: U.S. Military and C.I.A. Interventions Since World War II -Common Courage Press, 2008.</ref> The economic damage caused by the fighting has been estimated at between 1.5 and 2 billion dollars.<ref name="Acosta, Coleen 2008"/> Most [[Panamanians]] supported the intervention.<ref name="Panama"/><ref>Pastor, Robert A. (2001) ''Exiting the Whirlpool: U.S. Foreign Policy Toward Latin America and the Caribbean'', p. 96, {{ISBN|0813338115}}.</ref>

===Post-intervention era===
Panama's Electoral Tribunal moved quickly to restore civilian constitutional government, reinstated the results of the May 1989 election on December 27, 1989, and confirmed the victory of President [[Guillermo Endara]] and Vice Presidents [[Guillermo Ford]] and [[Ricardo Arias Calderón]].

During its five-year term, the often-fractious government struggled to meet the public's high expectations. Its new police force was a major improvement over its predecessor but was not fully able to deter crime. [[Ernesto Pérez Balladares]] was sworn in as president on September 1, 1994, after an internationally monitored election campaign.<ref name=":2">{{Cite web |title=Panama (02/07) |url=https://2009-2017.state.gov/outofdate/bgn/panama/80437.htm |access-date=2023-11-15 |website=U.S. Department of State |archive-date=November 15, 2023 |archive-url=https://web.archive.org/web/20231115023048/https://2009-2017.state.gov/outofdate/bgn/panama/80437.htm |url-status=live }}</ref>

On September 1, 1999, [[Mireya Moscoso]], the widow of former president [[Arnulfo Arias Madrid]], took office after defeating PRD candidate [[Martín Torrijos]], son of [[Omar Torrijos]], in a free and fair election.<ref>{{Cite web|url=http://www.latinamericanstudies.org/panama/moscoso.htm|title=Moscoso wins victory in Panama's presidential vote|website=LatinAmericanStudies.org|access-date=March 26, 2021|archive-date=October 4, 2022|archive-url=https://web.archive.org/web/20221004215757/http://www.latinamericanstudies.org/panama/moscoso.htm|url-status=live}}</ref><ref name=":0">{{Cite news|url=https://2009-2017.state.gov/outofdate/bgn/panama/95380.htm|title=Panama (11/07)|publisher=US Department of State|access-date=April 2, 2017|archive-date=April 3, 2017|archive-url=https://web.archive.org/web/20170403111632/https://2009-2017.state.gov/outofdate/bgn/panama/95380.htm|url-status=live}}</ref> During her administration, Moscoso attempted to strengthen social programs, especially for child and youth development, protection, and general welfare. Moscoso's administration successfully handled the Panama Canal transfer and was effective in the administration of the Canal.<ref name=":0" />

[[File:Boris Johnson with Juan Carlos Varela in London - 2018 (27232646267).jpg|thumb|British Foreign Secretary [[Boris Johnson]] swapped football shirts with the President of Panama, [[Juan Carlos Varela]] in London, May 14, 2018.]]

The PRD's Martin Torrijos won the presidency and a legislative majority in the National Assembly in 2004.<ref>{{Cite web|url=https://www.aljazeera.com/news/2004/5/3/martin-torrijos-wins-panama-election|title=Martin Torrijos wins Panama election|website=AlJazeera.com|access-date=March 26, 2021|archive-date=April 15, 2021|archive-url=https://web.archive.org/web/20210415203743/https://www.aljazeera.com/news/2004/5/3/martin-torrijos-wins-panama-election|url-status=live}}</ref> Torrijos ran his campaign on a platform of, among other pledges, a "zero tolerance" for corruption, a problem endemic to the Moscoso and Perez Balladares administrations.<ref name=":2" /> After taking office, Torrijos passed a number of laws which made the government more transparent. He formed a National Anti-Corruption Council whose members represented the highest levels of government and civil society, labor organizations, and religious leadership. In addition, many of his closest Cabinet ministers were non-political [[Technocracy|technocrats]] known for their support for the Torrijos government's anti-corruption aims. Despite the Torrijos administration's public stance on corruption, many high-profile cases,<ref name=":2" /> particularly involving political or business elites, were never acted upon.

Conservative supermarket magnate [[Ricardo Martinelli]] was elected to succeed Martin Torrijos with a landslide victory in the May [[2009 Panamanian general election]]. Martinelli's business credentials drew voters worried by slowing growth during the [[Great Recession]].<ref>{{cite news  |url=http://news.bbc.co.uk/2/hi/americas/country_profiles/1229332.stm  |title=Panama Country Profile  |work=[[BBC News]]  |date=June 30, 2010  |access-date=July 25, 2010  |archive-date=July 2, 2014  |archive-url=https://web.archive.org/web/20140702022612/http://news.bbc.co.uk/2/hi/americas/country_profiles/1229332.stm  |url-status=live  }}</ref> Standing for the four-party opposition Alliance for Change, Martinelli gained 60 percent of the vote, against 37 percent for the candidate of the governing left-wing [[Democratic Revolutionary Party]] (PRD).<ref>{{Cite web |url=https://dialogo-americas.com/articles/martinelli-wins-panama-presidential-vote/ |title=Martinelli Wins Panama Presidential Vote |publisher=Diálogo Americas |date=May 4, 2009 |access-date=March 26, 2021 |archive-date=April 15, 2021 |archive-url=https://web.archive.org/web/20210415203750/https://dialogo-americas.com/articles/martinelli-wins-panama-presidential-vote/ |url-status=live }}</ref>

On May 4, 2014, Vice President [[Juan Carlos Varela]], candidate of the [[Panameñista Party|Partido Panamenista]] (Panamanian Party) won the 2014 [[2014 Panamanian general election|presidential election]] with over 39 percent of the votes, against the party of his former political partner Ricardo Martinelli, Cambio Democrático, and their candidate [[José Domingo Arias]].<ref>{{Cite web|url=https://www.dw.com/en/former-deputy-varela-wins-panama-presidential-election/a-17612154|title=Former deputy Varela wins Panama presidential election &#124; DW &#124; 05.05.2014|website=DW.COM|access-date=March 26, 2021|archive-date=April 15, 2021|archive-url=https://web.archive.org/web/20210415213658/https://www.dw.com/en/former-deputy-varela-wins-panama-presidential-election/a-17612154|url-status=live}}</ref> He was sworn in on July 1, 2014.<ref>{{Cite web|url=https://www.caribjournal.com/2014/07/02/juan-carlos-varela-sworn-in-as-new-president-of-panama/|title=Juan Carlos Varela Sworn in As New President of Panama|date=July 2, 2014|website=Caribbean Journal|access-date=March 26, 2021|archive-date=April 15, 2021|archive-url=https://web.archive.org/web/20210415225743/https://www.caribjournal.com/2014/07/02/juan-carlos-varela-sworn-in-as-new-president-of-panama/|url-status=live}}</ref> On July 1, 2019 [[Laurentino Cortizo]] took possession of the presidency.<ref>{{Cite web|url=https://www.presidencia.gob.pa/Noticias/Presidente-Laurentino-Cortizo-Cohen-posesiona-a-miembros-de-su-Gabinete|title=Presidente Laurentino Cortizo Cohen posesiona a miembros de su Gabinete (Official site)|access-date=July 3, 2019|archive-date=July 3, 2019|archive-url=https://web.archive.org/web/20190703155652/https://www.presidencia.gob.pa/Noticias/Presidente-Laurentino-Cortizo-Cohen-posesiona-a-miembros-de-su-Gabinete|url-status=live}}</ref> Cortizo was the candidate of [[Democratic Revolutionary Party|Democratic Revolution Party]] (PRD) in the May 2019 [[2019 Panamanian general election|presidential election]].<ref>{{Cite news |url=https://www.reuters.com/article/us-panama-politics-idUSKCN1TW3ZN |title=Panama's new president takes office, pledges end to corruption |first=Elida |last=Moreno |newspaper=Reuters |date=July 1, 2019 |via=Reuters.com |access-date=March 26, 2021 |archive-date=April 15, 2021 |archive-url=https://web.archive.org/web/20210415220835/https://www.reuters.com/article/us-panama-politics-idUSKCN1TW3ZN |url-status=live }}</ref>

During the presidency of Cortizo, numerous events happened in the country, including the [[COVID-19 pandemic in Panama|COVID-19 pandemic]] and its [[Economic impact of the COVID-19 pandemic|economic impact]], and the [[2022 Panamanian protests|2022]] and [[2023 Panamanian protests|2023 protests]].<ref>{{Cite web |author=Al Jazeera Staff |title=What is behind the largest protests in Panama in years? |url=https://www.aljazeera.com/news/2022/7/20/what-is-behind-largest-protests-in-panama-in-years-explainer |access-date=2023-12-10 |website=Al Jazeera |language=en |archive-date=December 10, 2023 |archive-url=https://web.archive.org/web/20231210183443/https://www.aljazeera.com/news/2022/7/20/what-is-behind-largest-protests-in-panama-in-years-explainer |url-status=live }}</ref><ref>{{Cite news |last=Salcedo |first=Andrea |date=2023-11-09 |title=Why ordinarily quiet Panama has erupted in deadly protests |language=en-US |newspaper=Washington Post |url=https://www.washingtonpost.com/world/2023/11/07/panama-city-protests-copper-mine-deaths/ |access-date=2023-12-10 |issn=0190-8286 |archive-date=November 7, 2023 |archive-url=https://web.archive.org/web/20231107231108/https://www.washingtonpost.com/world/2023/11/07/panama-city-protests-copper-mine-deaths/ |url-status=live }}</ref>

On July 1, 2024, [[José Raúl Mulino]] was sworn in as Panama's new president.<ref>{{cite news |title=José Raúl Mulino is sworn in as Panama's new president |url=https://www.independent.co.uk/news/ap-panama-panama-city-alejandro-mayorkas-colombia-b2572152.html |work=The Independent |date=1 July 2024 |language=en |archive-date=July 2, 2024 |access-date=July 22, 2024 |archive-url=https://web.archive.org/web/20240702015619/https://www.independent.co.uk/news/ap-panama-panama-city-alejandro-mayorkas-colombia-b2572152.html |url-status=live }}</ref> Mulino, a close ally of former president Ricardo Martinelli, won the presidential [[2024 Panamanian general election|election]] in May 2024.<ref>{{cite news |title=Stand-in Jose Raul Mulino wins Panama presidential race |url=https://www.aljazeera.com/news/2024/5/6/mulino-wins-panama-presidential-race |work=Al Jazeera |language=en |archive-date=May 6, 2024 |access-date=July 22, 2024 |archive-url=https://web.archive.org/web/20240506121656/https://www.aljazeera.com/news/2024/5/6/mulino-wins-panama-presidential-race |url-status=live }}</ref> In 2024, due to a rapid rise of Chinese immigration to Panama supplanting the local population and now forming 4% of the people,<ref name="Mon">{{citation|title=The Chinese of Panama also have a story to tell...|last=Mon|first=Ramon|date=Spring 2013|url=https://revista.drclas.harvard.edu/the-chinese-of-panama-also-have-a-story-to-tell/|journal=ReVista Harvard Review of Latin America|access-date=March 5, 2025|archive-date=March 5, 2025|archive-url=https://web.archive.org/web/20250305052102/https://revista.drclas.harvard.edu/the-chinese-of-panama-also-have-a-story-to-tell/|url-status=live}}</ref><ref name="Jackson">{{citation|title=Panama's Chinese community celebrates a birthday, meets new challenges|last=Jackson|first=Eric|volume=10|issue=9|date=May 2004|access-date=2007-11-07|url=http://www.thepanamanews.com/pn/v_10/issue_09/community_01.html|journal=The Panama News|url-status=dead|archive-url=https://web.archive.org/web/20070916050839/http://www.thepanamanews.com/pn/v_10/issue_09/community_01.html|archive-date=2007-09-16}}</ref> of which, they are accused by the [[United States]] of spying for the [[Chinese Communist Party]], {{Citation needed|date=August 2025}} in the strategic isthmus of Panama which is crucial for the trade in the Americas, thus, American President [[Donald Trump]] has threatened to sanction Panama unless the threat of China is neutralized.<ref>{{Cite web |date=2025-02-03 |title=Rubio demands Panama 'reduce China influence' over canal |url=https://www.bbc.com/news/articles/c39149p920no |access-date=2025-03-06 |website=[[BBC News]] |language=en-GB |archive-date=February 17, 2025 |archive-url=https://web.archive.org/web/20250217183128/https://www.bbc.com/news/articles/c39149p920no |url-status=live }}</ref>

==Geography==
{{Main|Geography of Panama}}
{{See also|Geology of Panama}}
{{more citations needed section|date=January 2025}}[[File:Pm-map.png|upright=1.5|thumb|A map of Panama]]
[[File:La palma, Darién.jpg|thumb|La Palma, Darién]]

Panama is located in Central America, bordering both the Caribbean Sea and the Pacific Ocean, between Colombia and Costa Rica. It mostly lies between latitudes [[7th parallel north|7°]] and [[10th parallel north|10°N]], and longitudes [[77th meridian west|77°]] and [[83rd meridian west|83°W]] (a small area lies west of 83°).

Its location on the [[Isthmus of Panama]] is strategic. By 2000, Panama controlled the Panama Canal which connects the Atlantic Ocean and the Caribbean Sea to the north of the Pacific Ocean. Panama's total area is {{cvt|74,177.3|km2}}.<ref name=area>{{cite web |url=https://www.contraloria.gob.pa/inec/archivos/P6221DATOS%20GENERALES%20%20%20%202013.pdf |title=Datos generales e históricos de la República de Panamá |language=es |publisher=[[National Institute of Statistics and Census of Panama|INEC]] |access-date=December 22, 2015 |archive-date=July 10, 2015 |archive-url=https://web.archive.org/web/20150710174146/https://www.contraloria.gob.pa/inec/archivos/P6221DATOS%20GENERALES%20%20%20%202013.pdf |url-status=live }}</ref>

The dominant feature of Panama's geography is the central spine of mountains and hills that form the [[continental divide]]. The divide does not form part of the great mountain chains of North America, and only near the Colombian border are there highlands related to the [[Andes|Andean]] system of South America. The spine that forms the divide is the highly eroded arch of an uplift from the sea bottom, in which peaks were formed by volcanic intrusions.

The mountain range of the divide is called the [[Cordillera de Talamanca]] near the Costa Rican border. Farther east it becomes the Serranía de Tabasará, and the portion of it closer to the lower saddle of the isthmus, where the Panama Canal is located, is often called the Sierra de Veraguas. As a whole, the range between Costa Rica and the canal is generally referred to by geographers as the [[Cordillera Central, Costa Rica|Cordillera Central]].

The highest point in the country is the [[Volcán Barú]], which rises to {{convert|3,475|m|abbr=off}}. A nearly impenetrable jungle forms the [[Darién Gap]] between Panama and Colombia where Colombian [[guerrilla]]s and drug dealers operate and sometimes take [[hostage-taking|hostages]]. This, as well as unrest and [[forest protection]] movements, creates the only break in the [[Pan-American Highway]], which otherwise forms a complete road from Alaska to [[Patagonia]].

[[File:chagres.jpg|thumb|The [[Chagres River]]]]

===Waterways===
{{main|Panama Canal}}

Nearly 500 rivers lace Panama's rugged landscape. Mostly unnavigable, many originate as swift highland streams, meander in valleys, and form coastal deltas. However, the [[Río Chagres]] (''Chagres River''), located in central Panama, is one of the few wide rivers and a source of [[Hydroelectricity|hydroelectric]] power. The central part of the river is dammed by the [[Gatun Dam]] and forms [[Gatun Lake]], an [[artificial lake]] that constitutes part of the Panama Canal. The lake was created by the construction of the Gatun Dam across the Río Chagres between 1907 and 1913. Once created, Gatun Lake was the largest man-made lake in the world, and the dam was the largest earth dam. The river drains northwest into the Caribbean. The Kampia and Madden Lakes (also filled from the Río Chagres) provide hydroelectricity for the area of the former Canal Zone.

The Río Chepo, another source of hydroelectric power, is one of the more than 300 rivers emptying into the Pacific. These Pacific-oriented rivers are longer and slower-running than those on the Caribbean side. Their basins are also more extensive. One of the longest is the [[Río Tuira]], which flows into the [[Golfo de San Miguel]] and is the nation's only river that is navigable by larger vessels.

===Harbors===
The Caribbean coastline is marked by several natural harbors. However, Cristóbal, at the Caribbean terminus of the canal, had the only important port facilities in the late 1980s. The numerous islands of the Archipiélago de Bocas del Toro, near the Beaches of Costa Rica, provide an extensive natural roadstead and shield the banana port of [[Almirante, Bocas del Toro|Almirante]]. The more than 350 [[San Blas Islands]] near Colombia, are strung out over more than {{convert|160|km|abbr=off}} along the sheltered Caribbean coastline.

[[File:Colon Panama.jpg|thumb|[[Colón, Panama|Colón Harbor]], 2000]]
The terminal ports located at each end of the Panama Canal, namely the [[Port of Cristóbal]], Colón, and the [[Port of Balboa]], are ranked second and third respectively in Latin America in terms of the number of container units ([[Twenty-foot equivalent unit|TEU]]) handled.<ref>{{cite web |author=CEPAL – Naciones Unidas |url=http://www.eclac.cl/cgi-bin/getprod.asp?xml=/Transporte/noticias/noticias/8/38828/P38828.xml&base=/tpl/top-bottom.xsl |title=Ranking 2009 de Actividad portuaria de contenedores en América Latina y el Caribe |publisher=Eclac.cl |date=March 22, 2010 |access-date=December 23, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110511140155/http://www.eclac.cl/cgi-bin/getprod.asp?xml=%2FTransporte%2Fnoticias%2Fnoticias%2F8%2F38828%2FP38828.xml&base=%2Ftpl%2Ftop-bottom.xsl |archive-date=May 11, 2011 }}</ref> The Port of Balboa covers 182 hectares and contains four berths for containers and two multi-purpose berths. In total, the berths are over {{convert|2,400|m|abbr=off}} long with alongside depth of {{convert|15|m|abbr=off}}. The Port of Balboa has 18 super post-[[Panamax]] and Panamax quay cranes and 44 [[gantry crane]]s. The Port of Balboa also contains {{convert|2,100|m2|lk=out|abbr=off}} of warehouse space.<ref>{{cite web |url=http://www.worldportsource.com/ports/PAN_Port_of_Balboa_1602.php |title=Port of Balboa |publisher=World Port Source |access-date=December 23, 2010 |archive-url=https://web.archive.org/web/20170712093447/http://www.worldportsource.com/ports/PAN_Port_of_Balboa_1602.php |archive-date=July 12, 2017 |url-status=dead }}</ref>

The Ports of Cristobal (encompassing the container terminals of Panama Ports Cristobal, Manzanillo International Terminal, and Colon Container Terminal) handled 2,210,720 TEU in 2009, second only to the [[Port of Santos]], Brazil, in Latin America.

Excellent deep water ports capable of accommodating large [[VLCC]] (Very Large Crude Oil Carriers) are located at [[Charco Azul]], [[Chiriquí Province|Chiriquí]] (Pacific), and [[Chiriquí Grande]], [[Bocas del Toro Province|Bocas del Toro]] (Atlantic) near Panama's western border with Costa Rica. The [[Trans-Panama pipeline]], running {{convert|131|km|abbr=off}} across the isthmus, has operated between Charco Azul and Chiriquí Grande since 1979.<ref>{{cite web |url=http://www.petroterminal.com/index.php?option=com_content&view=article&id=32%3Ahistory&catid=7%3Acorporate-profile&Itemid=98&lang=en |title=Our History |publisher=Petroterminal.com |date=February 9, 1997 |access-date=December 23, 2010 |archive-url=https://web.archive.org/web/20141028134321/http://www.petroterminal.com/index.php?option=com_content&view=article&id=32:history&catid=7:corporate-profile&Itemid=98&lang=en |archive-date=October 28, 2014 |url-status=dead }}</ref>

===Climate===
{{Main|Climate of Panama}}
[[File:Koppen-Geiger Map PAN present.svg|thumb|Panama map of Köppen climate classification]]
[[File:VistaBoquete.jpg|thumb|A cooler climate is common in the Panamanian highlands.]]
Panama has a tropical climate. Temperatures are uniformly high—as is the relative humidity—and there is little seasonal variation. [[Diurnal temperature variation|Diurnal ranges]] are low; on a typical dry-season day in the capital city, the early morning minimum may be {{convert|24|°C|1}} and the afternoon maximum {{convert|30|°C|1}}. The temperature seldom exceeds {{convert|32|°C|1}} for more than a short time. Temperatures on the Pacific side of the isthmus are somewhat lower than on the Caribbean, and breezes tend to rise after dusk in most parts of the country. Temperatures are markedly cooler in the higher parts of the mountain ranges, and frosts occur in the [[Cordillera de Talamanca]] in western Panama.

Climatic regions are determined less on the basis of temperature than on [[rain]]fall, which varies regionally from less than {{convert|1300|mm|in|1|sp=us}} to more than {{convert|3000|mm|in|1|sp=us}} per year. Almost all of the rain falls during the rainy season, which is usually from April to December, but varies in length from seven to nine months. In general, rainfall is much heavier on the Caribbean than on the Pacific side of the [[continental divide]], due in part to occasional [[tropical cyclone]] activity nearby; Panama lies outside the [[Main Development Region]]. The annual average in Panama City is little more than half of that in Colón.

Panama is one of three countries in the world to be carbon-negative, meaning that it absorbs more [[carbon dioxide]] than it releases into the atmosphere. The others are [[Bhutan]] and [[Suriname]].<ref>{{Cite news |last=Goering |first=Laurie |date=November 3, 2021 |title=Forget net-zero: meet the small-nation, carbon-negative club |language=en |work=Reuters |url=https://www.reuters.com/business/cop/forget-net-zero-meet-small-nation-carbon-negative-club-2021-11-03/ |access-date=March 8, 2022 |archive-date=February 15, 2022 |archive-url=https://web.archive.org/web/20220215012548/https://www.reuters.com/business/cop/forget-net-zero-meet-small-nation-carbon-negative-club-2021-11-03/ |url-status=live }}</ref><ref>{{Cite web |title=PANAMA IS ONE OF THE THREE "CARBON NEGATIVE" COUNTRIES |url=https://grupoconsultorefe.com/recursos/latam-weekly/221/panama-is-one-of-the-three-carbon-negative-countries |access-date=March 8, 2022 |website=grupoconsultorefe.com |language=es |archive-date=March 8, 2022 |archive-url=https://web.archive.org/web/20220308225635/https://grupoconsultorefe.com/recursos/latam-weekly/221/panama-is-one-of-the-three-carbon-negative-countries |url-status=live }}</ref>

Climate change has a negative impact on Panama, reducing the water level of the Panama Canal, meaning less ships make it through and affecting its economy.<ref name=":9">{{Cite web |last=Krag |first=Jonas Schmidt Hansen, ea@era dk, Karen Sophie |date=2023-12-13 |title=Nyetableret alliance i Panama |url=https://www.verdensskove.org/nyetableret-alliance-i-panama/ |access-date=2025-08-22 |website=Verdens Skove |language=da-DK}}</ref>

===Biodiversity===
Panama's tropical environment supports an abundance of plants. Forests dominate, interrupted in places by grasslands, scrub, and crops. Although nearly 40% of Panama is still wooded, [[deforestation]] is a continuing threat to the rain-drenched woodlands. One of the causes of the deforestation is due to mining,<ref name=":9" /> and the construction of the Pan-American Highway.<ref>{{Cite web |date=2025-03-06 |title=Eastern Panamanian Montane Forests |url=https://www.oneearth.org/ecoregions/eastern-panamanian-montane-forests/ |access-date=2025-08-22 |website=One Earth |language=en}}</ref> Tree cover has been reduced by more than 50 percent since the 1940s. Subsistence farming, widely practiced from the northeastern jungles to the southwestern grasslands, consists largely of corn, bean, and tuber plots. [[Mangrove swamp]]s occur along parts of both coasts, with banana plantations occupying deltas near Costa Rica. In many places, a multi-canopied [[rainforest]] abuts the swamp on one side of the country and extends to the lower reaches of slopes on the other. Panama had a 2019 [[Forest Landscape Integrity Index]] mean score of 6.37/10, ranking it 78th globally out of 172 countries.<ref name="FLII-Supplementary">{{cite journal|last1=Grantham|first1=H. S.|last2=Duncan|first2=A.|last3=Evans|first3=T. D.|last4=Jones|first4=K. R.|last5=Beyer|first5=H. L.|last6=Schuster|first6=R.|last7=Walston|first7=J.|last8=Ray|first8=J. C.|last9=Robinson|first9=J. G.|last10=Callow|first10=M.|last11=Clements|first11=T.|last12=Costa|first12=H. M.|last13=DeGemmis|first13=A.|last14=Elsen|first14=P. R.|last15=Ervin|first15=J.|last16=Franco|first16=P.|last17=Goldman|first17=E.|last18=Goetz|first18=S.|last19=Hansen|first19=A.|last20=Hofsvang|first20=E.|last21=Jantz|first21=P.|last22=Jupiter|first22=S.|last23=Kang|first23=A.|last24=Langhammer|first24=P.|last25=Laurance|first25=W. F.|last26=Lieberman|first26=S.|last27=Linkie|first27=M.|last28=Malhi|first28=Y.|last29=Maxwell|first29=S.|last30=Mendez|first30=M.|last31=Mittermeier|first31=R.|last32=Murray|first32=N. J.|last33=Possingham|first33=H.|last34=Radachowsky|first34=J.|last35=Saatchi|first35=S.|last36=Samper|first36=C.|last37=Silverman|first37=J.|last38=Shapiro|first38=A.|last39=Strassburg|first39=B.|last40=Stevens|first40=T.|last41=Stokes|first41=E.|last42=Taylor|first42=R.|last43=Tear|first43=T.|last44=Tizard|first44=R.|last45=Venter|first45=O.|last46=Visconti|first46=P.|last47=Wang|first47=S.|last48=Watson|first48=J. E. M.|display-authors=1|title=Anthropogenic modification of forests means only 40% of remaining forests have high ecosystem integrity - Supplementary Material|journal=Nature Communications|volume=11|issue=1|date=2020|page=5978|issn=2041-1723|doi=10.1038/s41467-020-19493-3|pmid=33293507|pmc=7723057|bibcode=2020NatCo..11.5978G |doi-access=free}}</ref> Two-thirds of Panama's forests are located in indigenous territories,<ref>{{Cite web |title=Panama |url=https://www.healthinharmony.org/panama |access-date=2025-08-21 |website=Health In Harmony |language=en-US}}</ref> and 25% of Panama's territory is protected.<ref name=":8">{{Cite web |title=Panama National Parks {{!}} Global Alliance of National Parks |url=https://national-parks.org/panama |access-date=2025-08-21 |website=national-parks.org |language=en}}</ref>

Panama has 16 [[:Category:National parks of Panama|national parks]].<ref name=":8" /> [[Soberanía National Park]] has the greatest diversity of [[bird]]s for [[birdwatching]], with more than 525 birds inhabiting the area. It also has a variety of [[mammal]]s such as [[Lesser capybara|capybaras]] and [[coyote]]s, [[reptile]]s like the [[green iguana]], and [[amphibian]]s such as the [[cane toad]]. [[Darién National Park|Darien National Park]], known for the Darien Gap, is the largest national park in Central America, and is also a UNESCO World Heritage site. There is also the [[Metropolitan Natural Park|Metropolitan National Park]] outside Panama City, and the largest island of Panama is [[Coiba]] Island Park.<ref>{{Cite web |last=Ahuja |first=Dimple |last2=Biswas |first2=Utpala |date=2021-12-07 |title=5 National Parks In Panama Wildlife Enthusiasts Must Visit |url=https://traveltriangle.com/blog/national-parks-in-panama/ |access-date=2025-08-21 |language=en-IN}}</ref>

There is a Harlequin Frog Festival every year in Panama to raise awareness, as this species is threatened by habitat destruction and pollution.<ref>{{Cite web |title=Panama Wildlife Conservation |url=https://panamawildlife.org/amphibians/ |access-date=2025-08-21 |website=Panama Wildlife Conservation |language=en-US}}</ref>

==Government and politics==
{{Main|Politics of Panama}}
{{See also|Elections in Panama}}
{{Multiple image
| direction         = horizontal
| align             = right
| caption_align     = center
| total_width       = 260
| image1            = President José Raúl Mulino.jpg
| caption1          = [[José Raúl Mulino]]<br />[[President of Panama|President]]
| image2            = Coat of arms of Panama.svg
| caption2          = ''Vacant''<br />[[Vice President of Panama|Vice President]]
}}
[[File:Asamblea Nacional de Panamá.JPG|thumb|The [[National Assembly of Panama]]]]
Panama's politics take place in a framework of a [[presidential system|presidential]] [[representative democracy|representative democratic]] republic, whereby the [[President of Panama]] is both [[head of state]] and [[head of government]], and of a [[multi-party system]]. [[Executive power]] is exercised by the government. [[Legislative power]] is vested in both the government and the [[National Assembly of Panama|National Assembly]]. The [[judiciary]] is independent of the executive and the legislature.

National elections are universal for all citizens 18 years and older. National elections for the executive and legislative branches take place every five years. Members of the judicial branch (justices) are appointed by the head of state. Panama's [[National Assembly of Panama|National Assembly]] is elected by proportional representation in fixed electoral districts, so many smaller parties are represented. Presidential elections require a [[Plurality (voting)|plurality]]; out of the five last presidents only ex-president Ricardo Martinelli has managed to be elected with over 50 percent of the popular vote.<ref>[http://news.bbc.co.uk/2/hi/americas/8031425.stm Tycoon elected Panama's president] {{Webarchive|url=https://web.archive.org/web/20170620004924/http://news.bbc.co.uk/2/hi/americas/8031425.stm |date=June 20, 2017 }} Retrieved July 25, 2010</ref>

Panama was an [[Representative democracy|electoral democracy]] in 2024 as classified by the [[V-Dem Democracy Indices#Regimes of the World|Regimes of the World]] index.<ref name="j496">{{cite web | title=Democracy Report 2025, 25 Years of Autocratization – Democracy Trumped? | url=https://v-dem.net/documents/54/v-dem_dr_2025_lowres_v1.pdf | access-date=14 March 2025}}</ref>

===Political culture===
{{Unreferenced section|date=May 2024}}
Since the end of [[Manuel Noriega]]'s military dictatorship in 1989, Panama has completed five peaceful transfers of power to opposing political factions. The political landscape is dominated by two major parties and various smaller parties, many of which are driven by individual leaders more than ideologies. Former president [[Martín Torrijos]] is the son of the general [[Omar Torrijos]]. He succeeded [[Mireya Moscoso]], the widow of the former president [[Arnulfo Arias]]. Panama's most recent [[2024 Panamanian general election|national elections]] took place on May 5, 2024.

===Administrative divisions===
{{Image label begin|image=División Política de Panamá.svg|width=500|float=center}}
{{Image label small|x=0.11|y=0.05|scale=500|text=[[Bocas del Toro Province|Bocas<br />del Toro]]}}
{{Image label small|x=0.43|y=0.19|scale=500|text=[[Coclé Province|Coclé]]}}
{{Image label small|x=0.54|y=0.07|scale=500|text=[[Colón Province|Colón]]}}
{{Image label small|x=0.07|y=0.19|scale=500|text=[[Chiriquí Province|Chiriquí]]}}
{{Image label small|x=0.81|y=0.23|scale=500|text=[[Darién Province|Darién]]}}
{{Image label small|x=0.38|y=0.31|scale=500|text=[[Herrera Province|Herrera]]}}
{{Image label small|x=0.42|y=0.36|scale=500|text=[[Los Santos Province|Los Santos]]}}
{{Image label small|x=0.50|y=0.14|scale=500|text=[[Panamá Oeste Province|Panamá<br />Oeste]]}}
{{Image label small|x=0.62|y=0.09|scale=500|text=[[Panamá Province|Panamá]]}}
{{Image label small|x=0.28|y=0.28|scale=500|text=[[Veraguas Province|Veraguas]]}}
{{Image label small|x=0.78|y=0.05|scale=500|text=[[Guna Yala]]}}
{{Image label small|x=0.89|y=0.21|scale=500|text=[[Emberá Comarca|Emberá]]}}
{{Image label small|x=0.81|y=0.32|scale=500|text=[[Emberá Comarca|Emberá]]}}
{{Image label small|x=0.03|y=0.06|scale=500|text=[[Naso Tjër Di Comarca|Naso<br />Tjër Di]]}}
{{Image label small|x=0.18|y=0.18|scale=500|text=[[Ngäbe-Buglé Comarca|Ngäbe-Buglé]]}}
{{Image label small|x=0.74|y=0.10|scale=500|text=[[Madungandí]]}}
{{Image label small|x=0.82|y=0.13|scale=500|text=[[Guna de Wargandí|Wargandí]]}}
{{Image label end}}

{{Main|Provinces and regions of Panama}}
Panama is divided into ten provinces with their respective local authorities (governors). Each is divided into [[districts of Panama|districts]] and [[corregimientos of panama|''corregimientos'']] (townships). Also, there are six ''Comarcas'' (literally: "Shires") populated by a variety of indigenous groups.

'''Provinces'''
{{columns-list|colwidth=30em|
* [[Bocas del Toro Province|Bocas del Toro]]
* [[Chiriquí Province|Chiriquí]]
* [[Coclé Province|Coclé]]
* [[Colón Province|Colón]]
* [[Darién Province|Darién]]
* [[Herrera Province|Herrera]]
* [[Los Santos Province|Los Santos]]
* [[Panamá Province|Panamá]]
* [[West Panamá Province|West Panamá]]
* [[Veraguas Province|Veraguas]]
}}
'''Comarcas'''
{{columns-list|colwidth=30em|
* [[Emberá Comarca|Emberá]]
* [[Guna Yala]]
* [[Naso Tjër Di Comarca|Naso Tjër Di]]
* [[Ngäbe-Buglé Comarca|Ngäbe-Buglé]]
* [[Madungandí]]
* [[Guna de Wargandí]]
}}

===Foreign relations===
{{Main|Foreign relations of Panama}}
The United States cooperates with the Panamanian government in promoting economic, political, security, and social development through US and international agencies. Cultural ties between the two countries are strong,<ref>{{cite web|url=https://www.state.gov/u-s-relations-with-panama/|title=U.S. Relations With Panama|website=state.gov|publisher=[[United States Department of State]]|date=November 3, 2022|accessdate=December 19, 2022|archive-date=May 14, 2019|archive-url=https://web.archive.org/web/20190514091840/https://www.state.gov/r/pa/ei/bgn/2030.htm|url-status=live}}</ref> and many Panamanians go to the United States for higher education and advanced training.<ref>{{Cite web |title=Panama (11/07) |url=https://2009-2017.state.gov/outofdate/bgn/panama/95380.htm |access-date=2024-01-11 |website=U.S. Department of State |archive-date=April 3, 2017 |archive-url=https://web.archive.org/web/20170403111632/https://2009-2017.state.gov/outofdate/bgn/panama/95380.htm |url-status=live }}</ref>

Panama is the 96th most peaceful country in the world, according to the 2024 [[Global Peace Index]].<ref>{{Cite web|url=https://www.economicsandpeace.org/wp-content/uploads/2024/06/GPI-2024-web.pdf|title=2024 Global Peace Index|access-date=August 18, 2024|archive-date=August 19, 2024|archive-url=https://web.archive.org/web/20240819091540/https://www.economicsandpeace.org/wp-content/uploads/2024/06/GPI-2024-web.pdf|url-status=live}}</ref>

===Military===
{{Main|Panamanian Public Forces}}
{{More citations needed section|date=November 2020}}
Shortly after its independence from Colombia in 1903, Panama abolished its army. It maintained police operations throughout the nation. During the 1940s, the Chief of Police of Panama City, [[José Antonio Remón Cantera|José Remón]], exercised pronounced political power in Panama. He removed and appointed several presidents. In 1952 he ran for president. The campaign was marred by police brutality and persecution of the opposition. In an election questioned by independent observers, Remón was declared the president. Less than three years later Remón was assassinated. He was the only president to be assassinated in Panamanian history. Today the [[Panamanian Public Forces]] are the national security forces of Panama. Panama is the second country in Latin America (the other being [[Costa Rica]]) to permanently abolish its standing army. Panama maintains armed police and security forces, and small air and maritime forces. They are tasked with law enforcement and can perform limited military actions.

In 2017, Panama signed the UN [[treaty on the Prohibition of Nuclear Weapons]].<ref>{{Cite web |url=https://treaties.un.org/Pages/ViewDetails.aspx?src=TREATY&mtdsg_no=XXVI-9&chapter=26&clang=_en |title=Chapter XXVI: Disarmament&nbsp;– No. 9 Treaty on the Prohibition of Nuclear Weapons |publisher=United Nations Treaty Collection |date=July 7, 2017 |access-date=August 15, 2019 |archive-date=August 6, 2019 |archive-url=https://web.archive.org/web/20190806220546/https://treaties.un.org/Pages/ViewDetails.aspx?src=TREATY&mtdsg_no=XXVI-9&chapter=26&clang=_en |url-status=live }}</ref><ref>{{cite news |title=Panama adheres to the Treaty on the Prohibition of Nuclear Weapons |url=https://www.panamatoday.com/panama/panama-adheres-treaty-prohibition-nuclear-weapons-5273 |work=Panama Today |date=September 20, 2017 |access-date=August 15, 2019 |archive-date=August 15, 2019 |archive-url=https://web.archive.org/web/20190815123543/https://www.panamatoday.com/panama/panama-adheres-treaty-prohibition-nuclear-weapons-5273 |url-status=dead }}</ref>

==Economy==
{{Main|Economy of Panama}}
{{Update|date=May 2016}}
[[File:GDP per capita development Panama.svg|thumb|GDP per capita development Panama since 1950]]
[[File:Exclusa Miraflores Canal de Panama Panorama.jpg|thumb|A [[Panamax]] ship in transit through the Miraflores locks, [[Panama Canal]] ]]

According to the [[CIA World Factbook]], {{As of|2012|lc=y}} Panama had an [[unemployment rate]] of 2.7 percent.<ref name="cia"/> A food surplus was registered in August 2008. On the [[Human Development Index]], Panama ranked 60th in 2015. In more recent years, Panama's economy has experienced a boom, with growth in [[real gross domestic product]] (GDP) averaging over 10.4 percent in 2006–2008. Panama's economy was among the fastest growing and best managed in Latin America.<ref>{{Cite web |last=Mann |first=Richard |date=2024-09-10 |title=Panama Leads Latin America in Productivity Growth and Prosperity |url=https://www.riotimesonline.com/panama-leads-latin-america-in-productivity-growth-and-prosperity/ |access-date=2025-06-19 |website=The Rio Times |language=en-US}}</ref><ref>{{Cite web |date=2025-06-15 |title=Panama Archives |url=https://www.focus-economics.com/countries/panama/ |access-date=2025-06-19 |website=FocusEconomics |language=en-US}}</ref> The [[Latin Business Chronicle]] predicted that Panama would be the fastest growing economy in Latin America during the five-year period from 2010 to 2014, matching Brazil's 10 percent rate.<ref>{{cite web |url=http://www.latinbusinesschronicle.com/app/article.aspx?id=3702 |title=Latin Business Chronicle |publisher=Latin Business Chronicle |date=October 7, 2009 |access-date=June 26, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100717100429/http://www.latinbusinesschronicle.com/app/article.aspx?id=3702 |archive-date=July 17, 2010 }}</ref>

The [[Panama Canal expansion project|expansion project on the Panama Canal]] is expected to boost and extend economic expansion for some time.<ref>Sullivan M. P. 2011 February 2. Panama: Politics and Economic Conditions and U.S. Relations. Congressional Research Service.</ref> Panama also signed the [[Panama–United States Trade Promotion Agreement]] which eliminates tariffs to US services.<ref>{{Cite web|url=https://ustr.gov/trade-agreements/free-trade-agreements/panama-tpa|title=U.S.- Panama Trade Promotion Agreement|website=ustr.gov|language=en|access-date=March 19, 2019|archive-date=July 15, 2009|archive-url=https://web.archive.org/web/20090715171019/https://ustr.gov/trade-agreements/free-trade-agreements/panama-tpa|url-status=live}}</ref>

Even though Panama is regarded as a [[World Bank high-income economy|high-income country]], it still remains a country of stark contrasts perpetuated by dramatic educational disparities. Between 2015 and 2017, poverty at less than US$5.5 a day fell from 15.4 to an estimated 14.1 percent.<ref>{{cite news|url= https://www.worldbank.org/en/country/panama/overview|work= worldbank.org|title= Panama Overview|access-date= March 11, 2019|archive-date= December 30, 2021|archive-url= https://web.archive.org/web/20211230201740/https://www.worldbank.org/en/country/panama/overview|url-status= live}}</ref>

===Economic sectors===
Panama's economy, because of its key geographic location, is mainly based on a well-developed service sector, especially commerce, tourism, and trading. The handover of the Canal and military installations by the United States has given rise to large construction projects.

A project to build a third set of locks for the Panama Canal was overwhelmingly approved in a referendum (with low voter turnout, however) on October 22, 2006. The official estimated cost of the project is US$5.25 billion, but the canal is of major economic importance because it provides millions of dollars of toll [[revenue]] to the national economy and provides massive employment. Transfer of control of the Canal to the Panamanian government completed in 1999, after 85 years of US control.

Copper and gold deposits are being developed by foreign investors, to the dismay of some environmental groups, as all of the projects are located within protected areas.<ref>Oancea, Dan (January 2009). [https://web.archive.org/web/20110516031334/http://magazine.mining.com/Issues/0901/MiningCentralAmerica.pdf Mining in Central America]. Magazine.mining.com, pp. 10–12.</ref>

===Panama as a tax haven===
{{main|Financial centre|Panama as a tax haven}}
[[File:Countries implicated in the Panama Papers.svg|thumb|Countries with [[List of people named in the Panama Papers|politicians, public officials or close associates implicated in the Panama Papers]] on April 15, 2016]]

Since the early 20th century, Panama has with the revenues from the canal built the largest Regional Financial Center (IFC)<ref>{{Cite book|url=https://books.google.com/books?id=JHLvCAAAQBAJ&pg=PA9|title=International Banking and Financial Centers|last1=Park|first1=Yoon S.|last2=Essayyad|first2=Musa|date=December 6, 2012|publisher=Springer Science & Business Media|isbn=9789400925045|language=en|access-date=September 7, 2017|archive-date=February 5, 2024|archive-url=https://web.archive.org/web/20240205142031/https://books.google.com/books?id=JHLvCAAAQBAJ&pg=PA9#v=onepage&q&f=false|url-status=live}}</ref> in Central America, with consolidated assets being more than three times that of Panama's GDP. The [[banking]] sector employs more than 24,000 people directly. Financial intermediation contributed 9.3 percent of GDP.<ref name=":1">{{Cite web|url=https://www.presidencia.gob.pa/tmp/file/1503/INDEPENDENT%20EXPERT%20COMMITTEE.pdf|title=Committee of Independent Experts|publisher=Presidency of the Republic of Panama|date=November 18, 2016|archive-url=https://web.archive.org/web/20170818023452/https://www.presidencia.gob.pa/tmp/file/1503/INDEPENDENT%20EXPERT%20COMMITTEE.pdf|archive-date=August 18, 2017|url-status=dead}}</ref> Stability has been a key strength of Panama's financial sector, which has benefited from the country's favorable economic and business climate. Banking institutions report sound growth and solid financial earnings. The banking supervisory regime is largely compliant with the [[Basel III|Basel Core Principles]] for Effective Banking Supervision.<ref>{{Cite web|url=http://www.imf.org/external/NP/ofca/OFCA.aspx#P|title=Offshore Financial Centers (OFCs): IMF Staff Assessments (OFCA)|website=www.imf.org|language=en-US|access-date=June 4, 2017|archive-date=October 25, 2013|archive-url=https://web.archive.org/web/20131025215945/http://www.imf.org/external/NP/ofca/OFCA.aspx#P|url-status=live}}</ref> As a regional financial center, Panama exports some banking services, mainly to Latin America, and plays an important role in the country's economy. However, Panama still cannot compare to the position held by Hong Kong or Singapore as financial centers in Asia.

Panama still has a reputation worldwide for being a [[tax haven]] but has agreed to enhanced transparency, especially since the release in 2016 of the [[Panama Papers]]. Significant progress has been made to improve full compliance with anti-money laundering recommendations. Panama was removed from the [[Financial Action Task Force|FATF]] gray list in February 2016. The European Union also removed Panama from its tax haven blacklist in 2018.<ref>{{Cite web|title=EU Removes Panama, Seven Others, From Tax Haven Blacklist - ICIJ|date=January 23, 2018|url=https://www.icij.org/investigations/paradise-papers/eu-removes-panama-seven-others-tax-haven-black-list/|access-date=July 8, 2021|language=en-US|archive-date=January 23, 2018|archive-url=https://web.archive.org/web/20180123201849/https://www.icij.org/investigations/paradise-papers/eu-removes-panama-seven-others-tax-haven-black-list/|url-status=live}}</ref> However efforts remain to be made, and the IMF repeatedly mentions the need to strengthen financial transparency and fiscal structure.<ref name=":1" />

===Transportation===
{{main|Transport in Panama}}
[[File:CM Hubdelasamericas.jpg|thumb|[[Tocumen International Airport]], Central America's largest airport]]

Panama is home to [[Tocumen International Airport]], Central America's largest airport and the hub for [[Copa Airlines]], the flag carrier of Panama. Additionally, there are more than 20 smaller airfields in the country. (See [[list of airports in Panama]]).

Panama's roads, traffic and transportation systems are generally safe, though night driving is difficult and in some cases, restricted by local authorities. This usually occurs in [[shanty towns|informal settlements]].<ref name="travel">{{citation-attribution|{{Cite web | url=https://travel.state.gov/travel/cis_pa_tw/cis/cis_994.html |archive-url=https://web.archive.org/web/20131204211128/http://travel.state.gov/travel/cis_pa_tw/cis/cis_994.html |archive-date=December 4, 2013 |url-status = dead |date=December 4, 2013 | website= [[U.S. Department of State]] | title = Panama - County Specific Information}}}}</ref> Traffic in Panama moves on the right, and Panamanian law requires that drivers and passengers wear seat belts.<ref name=travel/> Highways are generally well-developed for a Latin American country. The [[Pan-American Highway]] travels from north to south through the country, starting at the border with Costa Rica, but ending short of Colombia at an area called the [[Darién Gap]].

The Panama City area is well served by the nearly 150 bus routes publicly operated [[Metrobus (Panama)|MiBus]] system along with the two [[rapid transit]] lines of the [[Panama Metro]]. Prior to the government operation of bus routes, Panama was served by privately operated buses called "diablo rojos" (English: red devils), which were typically retired [[school bus]]es from the United States painted in bright colours by their operators. The "diablo rojos" that remain are now mainly used in rural areas.

In May 2022, in order to increase the supply of lower-carbon aviation fuel, the government of Panama and energy companies announced its plan to develop a major and advanced biorefinery of aviation fuel in the country.<ref>{{Cite news |last=Kelly |first=Stephanie |date=May 18, 2022 |title=Exclusive: Panama to develop largest advanced biorefinery to make lower-carbon aviation fuel |url=https://www.reuters.com/business/sustainable-business/exclusive-panama-develop-largest-advanced-biorefinery-make-lower-carbon-aviation-2022-05-18/ |url-status=live |archive-url=https://web.archive.org/web/20220518132415/https://www.reuters.com/business/sustainable-business/exclusive-panama-develop-largest-advanced-biorefinery-make-lower-carbon-aviation-2022-05-18/ |archive-date=May 18, 2022 |access-date=May 19, 2022 |work=Reuters |language=en}}</ref>

===Tourism===
{{main|Tourism in Panama}}
{{more citations needed section|date=November 2015}}
[[File:Insel Zapatilla Panama.jpg|thumb|Zapatilla Island, Panama]]

Tourism in Panama has maintained its growth over the past five years due to government tax and price discounts to foreign guests and retirees. These economic incentives have caused Panama to be regarded as a relatively good place to retire.<ref>{{cite web|last=Peddicord|first=Kathleen|editor-last=Brandon|editor-first=Emily|url=https://money.usnews.com/money/retirement/baby-boomers/slideshows/best-places-to-retire-in-panama|title=The 10 Best Places to Retire in Panama|work=[[U.S. News & World Report]]|date=July 28, 2022|accessdate=December 19, 2022|archive-date=December 19, 2022|archive-url=https://web.archive.org/web/20221219215348/https://money.usnews.com/money/retirement/baby-boomers/slideshows/best-places-to-retire-in-panama|url-status=live}}</ref><ref>{{cite web|last=Ascarelli|first=Silvia|url=https://www.marketwatch.com/story/i-never-expected-to-retire-to-panama-but-we-are-living-very-comfortably-on-1-200-a-month-11633001564|title=I never expected to retire to Panama — but we are living 'very comfortably' on $1,200 a month|publisher=[[MarketWatch]]|date=June 4, 2022|orig-date=September 30, 2021|accessdate=December 19, 2022|archive-date=December 19, 2022|archive-url=https://web.archive.org/web/20221219215348/https://www.marketwatch.com/story/i-never-expected-to-retire-to-panama-but-we-are-living-very-comfortably-on-1-200-a-month-11633001564|url-status=live}}</ref> Real estate developers in Panama have increased the number of tourism destinations in the past five years because of interest in these visitor incentives.<ref>[http://www.redfrogbeach.com/panama.html Redfrogbeach.com] {{webarchive|url=https://web.archive.org/web/20091013113646/http://www.redfrogbeach.com/panama.html |date=October 13, 2009 }}, [http://www.islapalenque.com/location/panama Isla Palenque] {{Webarchive|url=https://web.archive.org/web/20111030091917/http://www.islapalenque.com/location/panama |date=October 30, 2011 }}, examples</ref>

The number of tourists from Europe grew by 23.1 percent during the first nine months of 2008. According to the Tourism Authority of Panama (ATP), from January to September, 71,154 tourists from Europe entered Panama, 13,373 more than in same period the previous year. Most of the European tourists were Spaniards (14,820), followed by Italians (13,216), French (10,174) and British (8,833). There were 6997 from Germany, the most populous country in the European Union. Europe has become one of the key markets to promote Panama as a tourist destination.

In 2012, 4.585 billion US dollars entered into the Panamanian economy as a result of tourism.<ref>{{Cite web |title=Panama Tourism Statistics 1995-2025 |url=https://www.macrotrends.net/global-metrics/countries/PAN/panama/tourism-statistics |access-date=2025-01-01 |website=www.macrotrends.net}}</ref> This accounted for 11.34 percent of the [[gross national product]] of the country,<ref>{{Cite web |title=Development and importance of tourism for Panama |url=https://www.worlddata.info/america/panama/tourism.php |access-date=2025-01-01 |website=Worlddata.info |language=en}}</ref> surpassing other productive sectors.{{citation needed|date=May 2016}} The number of tourists who arrived that year was 2.2 million.<ref>{{Cite journal |last1=Agarwal |first1=Tanya |last2=Suresh |first2=Sandeep |last3=Saha |first3=Sourish |last4=S. |first4=Varun |last5=Narayan |first5=Varun|date=March 9, 2014|title=The Republic of Panama: An Economic Analysis |language=en|journal=[[Elsevier]] |at=section 1.A.ii ("Tourism")|ssrn=2406629 }}</ref>

[[File:Fortifications on the Caribbean Side of Panama Portobelo-San Lorenzo-108169.jpg|thumb|[[Fortifications on the Caribbean Side of Panama: Portobelo-San Lorenzo]] were declared a [[World Heritage Site]] by [[UNESCO]] in 1980.]]

Panama enacted Law No. 80 in 2012 to promote foreign investment in tourism. Law 80 replaced an older Law&nbsp;8 of 1994. Law&nbsp;80 provides 100 percent exemption from [[income tax]] and real estate taxes for 15 years, duty-free imports for construction materials and equipment for five years, and a [[capital gain]]s tax exemption for five years.<ref>Juan José Espino Sagel. [https://web.archive.org/web/20160304043803/http://www.pardinilaw.com/publications/news.php?newsid=271&p=3&catid=6 Panama enacts new Tourism Law: Law 80 of 2012]. pardinilaw.com</ref>

===Currency===
The Panamanian currency is officially the [[Panamanian balboa|balboa]], [[fixed exchange rate|fixed]] at a rate of 1:1 with the [[United States dollar]] since Panamanian independence in 1903. In practice, Panama is [[Dollarization|dollarized]]: U.S. dollars are [[legal tender]] and used for all paper currency, and whilst Panama has its own coinage, U.S. coins are widely used. Because of the tie to US dollars, Panama has traditionally had low [[inflation]]. According to the [[Economic Commission for Latin America and the Caribbean]], Panama's inflation in 2006 was 2.0 percent as measured by a weighted [[Consumer Price Index]].<ref>{{cite web |url=http://www.cepal.org/publicaciones/xml/2/27542/Anexo_estadistico.pdf |title=CEPAL.org |access-date=June 26, 2010 |archive-url=https://web.archive.org/web/20130824191044/http://www.cepal.org/publicaciones/xml/2/27542/Anexo_estadistico.pdf |archive-date=August 24, 2013 |url-status=dead }}</ref>

The balboa replaced the [[Colombian peso]] in 1904 after Panama's independence. Balboa banknotes were printed in 1941 by President Arnulfo Arias. They were recalled several days later, giving them the name "The Seven Day Dollars". The notes were burned by the new government, but occasionally balboa notes can be found in collections. These were the only banknotes ever issued by Panama and US notes have circulated both before and since.<ref>{{Cite book |last=Naylor |first=R. T. |title=Patriots and profiteers : economic warfare, embargo busting, and state-sponsored crime |date=2008 |publisher=McGill-Queen's University Press |isbn=978-0-7735-7489-2 |location=Montreal [Que.] |oclc=752267663 }}</ref>

On April 28, 2022, Panama's lawmakers approved a bill that would legalize and regulate the use of bitcoin and other cryptocurrencies. The bill covers using cryptocurrency, trading it, tokenizing precious metals, and issuing digital securities, among other related topics. Its passing will also allow citizens to use their cryptocurrency holdings to pay taxes.<ref>{{Cite web |last=Hilaire and Moreno |date=April 28, 2022 |title=Panama passes bill to permit use of crypto assets |url=https://www.reuters.com/world/americas/panama-lawmakers-pass-bill-regulate-use-crypto-assets-2022-04-28/ |access-date=April 30, 2022 |website=Reuters.com |archive-date=April 30, 2022 |archive-url=https://web.archive.org/web/20220430032551/https://www.reuters.com/world/americas/panama-lawmakers-pass-bill-regulate-use-crypto-assets-2022-04-28/ |url-status=live }}</ref> On July 14, 2023, the Supreme Court of Justice declared the bill unenforceable.<ref>{{Cite web|title=Corte declaró inexequible proyecto de ley que regula uso de criptomonedas|trans-title=Court declared unenforceable bill regulating use of cryptocurrencies|url=https://www.laestrella.com.pa/economia/230714/corte-declaro-inexequible-proyecto-ley-regula-criptomonedas|website=La Estrella de Panamá|language=es|last=Guerrel|first=Ismael Gordón|date=July 14, 2023|access-date=July 28, 2023|archive-date=July 27, 2023|archive-url=https://web.archive.org/web/20230727170439/https://www.laestrella.com.pa/economia/230714/corte-declaro-inexequible-proyecto-ley-regula-criptomonedas|url-status=live}}</ref>

===International trade===
The high levels of Panamanian trade are in large part from the [[Colón Free Trade Zone]], the largest free trade zone in the [[Western Hemisphere]].<ref name="z459">{{cite web | title=Panama Special Economic Zones | website=International Trade Administration | date=July 8, 2021 | url=https://www.trade.gov/market-intelligence/panama-special-economic-zones#:~:text=The%20Colon%20Free%20Zone%20(CFZ,Latin%20American%20and%20Caribbean%20markets. | access-date=May 21, 2024 | archive-date=May 21, 2024 | archive-url=https://web.archive.org/web/20240521143451/https://www.trade.gov/market-intelligence/panama-special-economic-zones#:~:text=The%20Colon%20Free%20Zone%20(CFZ,Latin%20American%20and%20Caribbean%20markets. | url-status=live }}</ref> Last year the zone accounted for 92 percent of Panama's exports and 64 percent of its imports, according to an analysis of figures from the Colon zone management and estimates of Panama's trade by the [[United Nations Economic Commission for Latin America and the Caribbean]]. Panama's economy is also very much supported by the trade and export of coffee and other agricultural products.{{citation needed|date=May 2016}}

The Bilateral Investment Treaty (BIT) between the governments of the United States and Panama was signed on October 27, 1982. The treaty protects US investment and assists Panama in its efforts to develop its economy by creating conditions more favorable for US private investment and thereby strengthening the development of its private sector. The BIT was the first such treaty signed by the US in the Western Hemisphere.<ref>{{cite web |url=http://tcc.export.gov/Trade_Agreements/Bilateral_Investment_Treaties/index.asp |title=List of BITs currently in effect |publisher=Tcc.export.gov |access-date=June 26, 2010 |archive-url=https://web.archive.org/web/20100709145249/http://tcc.export.gov/Trade_Agreements/Bilateral_Investment_Treaties/index.asp |archive-date=July 9, 2010 }}</ref> A [[Panama–United States Trade Promotion Agreement]] (TPA) was signed in 2007, approved by Panama on July 11, 2007, and by US President Obama on October 21, 2011, and the agreement entered into force on October 31, 2012.<ref>{{cite web |url=http://trade.gov/mas/ian/tradeagreements/fta/tg_ian_002427.asp |title=The United States-Panama Trade Promotion Agreement (TPA) |website=Trade.gov |access-date=October 31, 2012 |archive-url=https://web.archive.org/web/20121113033819/http://trade.gov/mas/ian/tradeagreements/fta/tg_ian_002427.asp |archive-date=November 13, 2012 }}</ref>

==Demographics==
{{Main|Demographics of Panama}}
[[File:Panama single age population pyramid 2020.png|thumb|Population pyramid, 2020]]
[[File:Panama-demography.png|thumb|upright=1.4|Panama's population, 1961–2003]]

Panama had an estimated population of {{UN_Population|Panama}} in {{UN_Population|Year}}.{{UN_Population|ref}} The proportion of the population aged less than 15 in 2010 was 29 percent. 64.5 percent of the population was between 15 and 65, with 6.6 percent of the population 65 years or older.<ref name="WPP 2012">{{cite web |url=http://esa.un.org/unpd/wpp/index.htm |title=Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2012 Revision |publisher=Esa.un.org |access-date=April 9, 2016 |archive-url=https://web.archive.org/web/20110506065230/http://esa.un.org/unpd/wpp/index.htm |archive-date=May 6, 2011 |url-status=dead }}</ref>
More than half the population lives in the Panama City–[[Colón, Panama|Colón]] metropolitan corridor, which spans several cities. Panama's urban population exceeds 75 percent, making Panama's population the most urbanized in Central America.<ref name="Estado de Información Forestal en Panamá">{{cite web |url=http://www.fao.org/docrep/006/ad395s/AD395s06.htm |title=Corredor Transístmico Panamá -Colón |access-date=August 5, 2010 |archive-date=May 2, 2006 |archive-url=https://web.archive.org/web/20060502061904/http://www.fao.org/docrep/006/ad395s/AD395s06.htm |url-status=live }}</ref>
{{Clear}}

===Largest cities===
{{Main|List of cities in Panama}}
These are the 10 largest Panamanian cities and towns. Most of Panama's largest cities are part of the [[Panama City Metropolitan Area]].

{{Largest cities
| country      = Panama
| stat_ref     = [http://www.citypopulation.de/Panama.html#Stadt_gross City Population]
| list_by_pop  =
| div_name     = Province
| div_link     =

|city_1 = Panama City
|div_1 = Panamá Province{{!}}Panamá
|pop_1 = 430,299
|img_1 = Panama City financial district.jpg

|city_2 = San Miguelito District{{!}}San Miguelito
|div_2 = Panamá Province{{!}}Panamá
|pop_2 = 315,019
|img_2 = San Miguelito skyline.jpg

|city_3 = Las Cumbres
|div_3 = Panamá Province{{!}}Panamá
|pop_3 = 127,440

|city_4 = La Chorrera, Panama{{!}}La Chorrera
|div_4 = Panamá Oeste Province{{!}}Panamá Oeste
|pop_4 = 118,521

|city_5 = Tocumen
|div_5 = Panamá Province{{!}}Panamá
|pop_5 = 113,174

|city_6 = Pacora
|div_6 = Panamá Province{{!}}Panamá
|pop_6 = 103,960

|city_7 = Arraiján
|div_7 = Panamá Oeste Province{{!}}Panamá Oeste
|pop_7 = 96,676

|city_8 = David, Chiriquí{{!}}David
|div_8 = Chiriquí Province{{!}}Chiriquí
|pop_8 = 81,957

|city_9 = Vista Alegre, Panama{{!}}Vista Alegre
|div_9 = Panamá Oeste Province{{!}}Panamá Oeste
|pop_9 = 55,114

|city_10 = Santiago de Veraguas
|div_10 = Veraguas Province{{!}}Veraguas
|pop_10 = 51,236
}}
[[File:Panama 08 2013 Ave Balboa 7044.JPG|thumb|[[Panama City]], Panama's capital]]

===Ethnic groups===
In 2010 the population was 65 percent [[Mestizo]] (mixed White, Indigenous), 12.3 percent Indigenous, 9.2 percent Black or African descent, 6.8 percent Mulatto, and 6.7 percent White.<ref name="cia" /><ref>{{cite web|url=https://www.cia.gov/the-world-factbook/countries/panama/|title=The World Factbook — Central Intelligence Agency|website=CIA.gov|date=December 2, 2021|access-date=January 24, 2021|archive-date=January 23, 2021|archive-url=https://web.archive.org/web/20210123023447/https://www.cia.gov/the-world-factbook/countries/panama/|url-status=live}}</ref>

The Amerindian population includes seven ethnic groups: the [[Ngäbe]], [[Guna people|Guna]], [[Emberá people|Emberá]], [[Bokota people|Buglé]], [[Wounaan]], [[Naso people|Naso Tjerdi]] (Teribe), and [[Bribri people|Bri Bri]].<ref>{{cite web |url=http://www.iwgia.org/regions/latin-america/panama/887-update-2011-panama |title=Update 2011 – Panama |publisher=Iwgia.org |access-date=June 15, 2013 |archive-url=https://web.archive.org/web/20130307063455/http://www.iwgia.org/regions/latin-america/panama/887-update-2011-panama |archive-date=March 7, 2013 |url-status=dead }}</ref>

Most Afro-Panamanians live on the Panama–[[Colón, Panama|Colón]] metropolitan area, the Darién Province, [[La Palma, Darién|La Palma]], and [[Bocas del Toro Province]]. Areas in Panama City with significant Afro-Panamian influence Rio Abajo and Casco Viejo.<ref>{{Cite web |date=2023-01-03 |title=Top 3 Afro-Panamanian Places Black Expats in Panama City, Panama Should Visit. |url=https://allthingsbiola.com/2023/01/03/top-3-afro-panamanian-places-black-expats-in-panama-city-panama-should-visit/ |access-date=2024-09-08 |website=AllThingsBiola |language=en |archive-date=September 8, 2024 |archive-url=https://web.archive.org/web/20240908231240/https://allthingsbiola.com/2023/01/03/top-3-afro-panamanian-places-black-expats-in-panama-city-panama-should-visit/ |url-status=live }}</ref><ref>{{Cite web |last=Braga |first=Brunno |date=2023-10-06 |title=Panama: How To Experience Afro Culture in the Country |url=https://travelnoire.com/panama-afro-culture |access-date=2024-09-08 |website=Travel Noire |language=en |archive-date=September 8, 2024 |archive-url=https://web.archive.org/web/20240908231240/https://travelnoire.com/panama-afro-culture |url-status=live }}</ref> Black Panamanians are descendants of African slaves brought to the Americas in the [[Atlantic slave trade]]. The second wave of black people brought to Panama came from the Caribbean during the construction of the Panama Canal.

Panama also has a considerable Chinese and Indian population brought to work on the canal during its construction. Most [[Chinese Panamanians]] reside in the province of [[Chiriquí Province|Chiriquí]]{{citation needed|date=July 2017}} and Chinese Panamanians compose 4% of the population of Panama.<ref name="Mon"/><ref name="Jackson"/> Europeans and [[Demographics of Panama#European Panamanians|White Panamanians]] are a minority in Panama forming 6.7% of the population. Panama is also home to a small Arab community that has [[mosque]]s and practices Islam, as well as a Jewish community and many synagogues.

===Languages===
{{Further|Panamanian Spanish}}

Spanish is the official and dominant language. The Spanish spoken in Panama is known as Panamanian Spanish. About 93 percent of the population speak Spanish as their first language. Many citizens who hold jobs at international levels, or at business corporations, speak both English and Spanish. About 14 percent of Panamanians speak English;<ref>{{cite web |url=https://www.worldatlas.com/articles/what-languages-are-spoken-in-panama.html |title=What Languages Are Spoken in Panama? |date=August 24, 2017 |publisher=World Atlas |access-date=January 1, 2020 |archive-date=June 4, 2023 |archive-url=https://web.archive.org/web/20230604131839/https://www.worldatlas.com/articles/what-languages-are-spoken-in-panama.html |url-status=live }}</ref> this number is expected to rise because Panama now requires English classes in its public schools.<ref>{{cite web |url=https://www.pearsonlearned.com/improving-english-for-panamas-first-bilingual-generation/ |title=Improving English for Panama's First Bilingual Generation |publisher=Pearson |access-date=January 1, 2020 |archive-url=https://web.archive.org/web/20200101163727/https://www.pearsonlearned.com/improving-english-for-panamas-first-bilingual-generation/ |archive-date=January 1, 2020 |url-status=dead }}</ref> Native languages, such as [[Guaymí language|Ngäbere]], are spoken throughout the country, mostly in their native territories. Over 400,000 Panamanians keep their native languages and customs.<ref name="Ethnologue Report for Panama">{{cite web|url=http://www.ethnologue.com/country/PA|title=Panama|access-date=August 5, 2010|archive-date=March 9, 2023|archive-url=https://web.archive.org/web/20230309065853/https://www.ethnologue.com/country/PA/|url-status=live}}</ref> About 4 percent speak French and 1 percent speak Arabic.<ref>{{Cite web|url=https://www.cia.gov/library/publications/the-world-factbook/fields/2098.html|title=The World Factbook — Central Intelligence Agency|website=www.cia.gov|language=en|access-date=October 11, 2017|archive-date=March 7, 2014|archive-url=https://web.archive.org/web/20140307124031/https://www.cia.gov/library/publications/the-world-factbook/fields/2098.html|url-status=dead}}</ref> There was also a French creole spoken in Panama, [[San Miguel Creole|San Miguel Creole French]], which has since gone extinct.<ref>{{Cite web |title=Language in Panama |url=https://www.frommers.com/destinations/panama/in-depth/language/ |access-date=2025-09-14 |website=Frommers |language=en}}</ref>

===Religion===
{{Main|Religion in Panama}}
[[File:Panama Catedral Metropolitana.jpg|thumb|150px|left|Colonial [[Metropolitan Cathedral of Panama City]]]]
{{Pie chart|thumb=right|caption=Religion in Panama (2015)<ref name=2015survey/>
|label1=[[Catholics]]|value1=63.2|color1=DarkOrchid|label2=[[Protestants]]|value2=25|color2=DodgerBlue|label3=[[Adventist]]|value3=1.3|color3=SkyBlue|label4=[[Jehovah's Witnesses]]|value4=1.4|color4=Aquamarine|label5=[[Mormons]]|value5=0.6|color5=DarkTurquoise|label6=[[Buddhism]]|value6=0.4|color6=Yellow|label7=[[Judaism]]|value7=0.1|color7=Blue|label8=No religion|value8=7.6|color8=Honeydew|label9=Other religions|value9=0.4|color9=Gold}}

[[Christianity]] is the main religion in Panama. An official survey carried out by the government estimated in 2015 that 63.2% of the population, or 2,549,150 people, identifies itself as [[Roman Catholic]], and 25% as [[evangelical Protestant]], or 1,009,740.<ref name="2015survey"/>

The [[Baháʼí Faith]] community in Panama is estimated at 2% of the national population, or about 60,000<ref name="WCoC">{{cite web|title = Panama|work = World Council of Churches: WCC Member Churches|publisher = World Council of Churches|date = January 1, 2006|url = http://www.oikoumene.org/en/member-churches|access-date = July 1, 2008|archive-url = https://web.archive.org/web/20170708044321/http://www.oikoumene.org/en/member-churches|archive-date = July 8, 2017|url-status = dead}}</ref> including about 10% of the [[Guaymí]] population.<ref name="guay">{{Cite journal |last = International Community |first = Baháʼí |author-link = Baháʼí International Community |title = In Panama, some Guaymis blaze a new path |journal = One Country |volume = 1994 |issue = October–December |date = October–December 1994 |url = http://info.bahai.org/article-1-8-1-18.html |access-date = April 7, 2011 |archive-url = https://web.archive.org/web/20140802031749/http://info.bahai.org/article-1-8-1-18.html |archive-date = August 2, 2014 |url-status = dead }}</ref>

The [[Jehovah's Witnesses]] were the next largest congregation comprising the 1.4% of the population, followed by the [[Seventh-day Adventist Church|Adventist Church]] and [[the Church of Jesus Christ of Latter-day Saints]] with 0.6%. Smaller groups include the [[Buddhist]], [[Jewish]], [[Anglicanism|Episcopalian]], [[Islam in Panama|Muslim]] and [[Hindu]] communities.<ref name="report">[https://2001-2009.state.gov/g/drl/rls/irf/2007/90262.htm International Religious Freedom Report 2007: Panama] {{Webarchive|url=https://web.archive.org/web/20230408234244/https://2001-2009.state.gov/g/drl/rls/irf/2007/90262.htm |date=April 8, 2023 }}. United States [[Bureau of Democracy, Human Rights and Labor]] (September 14, 2007). ''This article incorporates text from this source, which is in the [[public domain]].''</ref> Indigenous religions include Ibeorgun (among [[Guna people|Guna]]) and Mamatata (among [[Ngäbe]]).<ref name="report" /> There are also a small number of [[Rastafarians]].<ref name="report" />

===Education===
{{Main|Education in Panama}}

During the 16th century, education in Panama was provided by [[Jesuit]]s. [[Public education]] began in Panama soon after it seceded from Colombia in 1903. The first efforts were guided by a paternalistic view of the goals of education, as evidenced in comments made in a 1913 meeting of the First Panamanian Educational Assembly, "The cultural heritage given to the child should be determined by the social position he will or should occupy. For this reason education should be different in accordance with the social class to which the student should be related." This elitist focus changed rapidly under US influence.<ref name="cs">{{Country study|country=Panama|abbr=pa|editor=Sandra W. Meditz and Dennis M. Hanratty|date=December 1987|section=Education|last=Kluck |first= Patricia}}</ref>

In 2010, it was estimated that 94.1 percent of the population was literate (94.7 percent of males and 93.5 percent of females).<ref name="cia.gov">{{cite web|url=https://www.cia.gov/the-world-factbook/countries/panama/|title=The World Factbook|access-date=October 25, 2014|archive-date=January 23, 2021|archive-url=https://web.archive.org/web/20210123023447/https://www.cia.gov/the-world-factbook/countries/panama/|url-status=live}}</ref> Education in Panama is [[compulsory education|compulsory]] for all children between ages 6 and 15. In recent decades, school enrollment at all levels, but especially at upper levels, has increased significantly. Panama participates in the [[Programme for International Student Assessment|PISA]] exams, but due to debts and unsatisfactory exam results, it postponed participation until 2018.<ref>{{cite web |url=http://impresa.prensa.com/panorama/Panama-pruebas-Pisa_0_4006849352.html |title=Panamá sin pruebas Pisa hasta 2018 |date=August 18, 2014 |website=Impresa.prensa.com |access-date=April 9, 2016 |archive-date=July 9, 2018 |archive-url=https://web.archive.org/web/20180709011304/https://impresa.prensa.com/panorama/Panama-pruebas-Pisa_0_4006849352.html |url-status=live }}</ref>

==Culture==
{{Main|Culture of Panama}}
{{See also|Music of Panama|Mass media in Panama}}
[[File:Ruben Blades by Gage Skidmore.jpg|thumb|upright|[[Rubén Blades]] is an icon singer of the Salsa music.]]

The culture of Panama derives from [[Music of Europe|European music]], [[European art|art]] and traditions brought by the Spanish to Panama. [[Hegemonic]] forces have created [[Cross-genre|hybrid]] forms blending [[Culture of Africa|African]] and [[Indigenous peoples of Panama|Indigenous Panamanian]] culture with [[Culture of Europe|European culture]]. For example, the ''[[tamborito]]'' is a Spanish dance with African rhythms, themes and dance moves.<ref>{{cite web |url=http://panama-culture.com/ |title=The online almanac of Panama culture with travel links |publisher=Panama Culture |access-date=December 23, 2010 |archive-date=March 14, 2018 |archive-url=https://web.archive.org/web/20180314074449/http://panama-culture.com/ |url-status=live }}</ref>

Dance is typical of the diverse cultures in Panama. The local folklore can be experienced at a multitude of festivals, through dances and traditions handed down from generation to generation.<ref>{{Cite web|url=https://www.vacationtopanama.com/travel-guide/cultural-melting-pot/|title=Panama Culture and Traditions, a True Melting Pot of Mesoamerica|website=Panama Vacations|language=en-US|access-date=February 22, 2020|archive-date=June 9, 2023|archive-url=https://web.archive.org/web/20230609185905/https://www.vacationtopanama.com/travel-guide/cultural-melting-pot/|url-status=live}}</ref> Local cities host live ''[[reggae en español]]'', ''[[reggaeton]]'', ''haitiano ([[compas]])'', [[jazz]], [[blues]], ''[[salsa music|salsa]]'', [[reggae]], and [[rock music]] performances.{{citation needed|date=May 2016}}

===Holidays and festivities===
{{Main|Public holidays in Panama}}

The Christmas parade, known as ''El desfile de Navidad'', is celebrated in the capital, Panama City. This holiday is celebrated on December 25. The floats in the parade are decorated in the Panamanian colors, and women wear dresses called ''[[pollera]]'' and men dress in traditional montuno. In addition, the marching band in the parade, consisting of drummers, keeps crowds entertained. In the city, a big Christmas tree is lit with Christmas lights, and everybody surrounds the tree and sings Christmas carols.<ref>{{cite web|publisher=Bureau of Western Hemisphere Affairs|date=June 23, 2010|url=https://2009-2017.state.gov/r/pa/ei/bgn/2030.htm|title=Panama|access-date=May 21, 2019|archive-date=June 4, 2019|archive-url=https://web.archive.org/web/20190604191011/https://2009-2017.state.gov/r/pa/ei/bgn/2030.htm|url-status=live}}</ref>

===Literature===
{{Main|Panamanian literature}}

The first literature relating to Panama can be dated to 1535, with a modern literary movement appearing from the mid-19th century onwards.

===Handicraft===
[[File:KunaWomanSellingMolas.jpg|thumb|Guna woman selling Molas in Panama City]]
Outside Panama City, regional festivals take place throughout the year featuring local musicians and dancers. Panama's blended culture is reflected in traditional products, such as [[woodcarving]]s, ceremonial masks and [[pottery]], as well as in Panama's architecture, cuisine and festivals. In earlier times, baskets were woven for utilitarian uses, but now many villages rely almost exclusively on income from the baskets they produce for tourists.

An example of undisturbed, unique culture in Panama is that of the [[Guna Yala|Guna]] who are known for ''[[mola (art form)|molas]]''. ''Mola'' is the Guna word for blouse, but the term ''mola'' has come to mean the elaborate embroidered panels made by Guna women, that make up the front and back of a Guna woman's blouse. They are several layers of cloth, varying in color, that are loosely stitched together, made using a reverse [[appliqué]] process.

===Clothing===
[[File:Tuna panama.jpg|thumb|A couple dancing Panamanian Cumbia]]
Panamanian men's traditional clothing, called ''montuno'', consists of white cotton shirts, trousers and woven straw hats.

The traditional women's clothing is the ''pollera''. It originated in Spain in the 16th century, and by the early 1800s it was typical in Panama, worn by female servants, especially wet nurses (''De Zarate'' 5). Later, it was adopted by upper-class women.

A ''pollera'' is made of "[[cambric]]" or "fine linen" (Baker 177). It is white, and is usually about 13 yards of material.

The original ''pollera'' consists of a ruffled blouse worn off the shoulders and a skirt with gold buttons. The skirt is also ruffled, so that when it is lifted up, it looks like a peacock's tail or a ''[[mantilla]]'' fan. The designs on the skirt and blouse are usually flowers or birds. Two large matching [[pom pom]]s (''mota'') are on the front and back, four ribbons hang from the front and back from the waist, five gold chains (''caberstrillos'') hang from the neck to the waist, a gold cross or medallion on a black ribbon is worn as a [[choker]], and a silk purse is worn at the waistline. Earrings (''zaricillos'') are usually gold or coral. Slippers usually match the color of the ''pollera''. Hair is usually worn in a bun, held by three large gold combs that have pearls (''tembleques'') worn like a crown. Quality ''pollera'' can cost up to $10,000, and may take a year to complete.

Today, there are different types of ''polleras''; the ''pollera de gala'' consists of a short-sleeved ruffle skirt blouse, two full-length skirts and a [[petticoat]]. Girls wear ''[[tembleques]]''<ref>''[https://web.archive.org/web/20170518133519/http://panamafolktembleques.com/ tembleques]''</ref> in their hair. Gold coins and jewelry are added to the outfit. The ''pollera montuna'' is a daily dress, with a blouse, a skirt with a solid color, a single gold chain, and pendant earrings and a natural flower in the hair. Instead of an off-the-shoulder blouse it is worn with a fitted white jacket that has shoulder pleats and a flared hem.<ref>[https://web.archive.org/web/20110726000349/http://discoverytheater.org/education/guides/2010/Celebremos%20Panama!%20Resource%20Guide.pdf Celebremos Panama!]. Discovery Theater and Smithsonian Latino Center</ref>

Traditional clothing in Panama can be worn in parades, where the females and males do a traditional dance. Females gently sway and twirl their skirts, while men hold their hats in their hands and dance behind the females.

===Cuisine===
{{Main|Panamanian cuisine}}

Since Panama's cultural heritage is influenced by many ethnicities the traditional cuisine of the country includes ingredients from many cultures, from all over the world:
a mix of Spanish, Indigenous Panamanian, and African techniques, dishes, and ingredients, reflecting its diverse population. Since Panama is a land bridge between two continents, it has a large variety of tropical fruits, vegetables and herbs that are used in native cooking.
The famous fish market known as the "Mercado de Mariscos" offers fresh seafood and [[Ceviche]], a seafood dish. Small shops along the street which are called kiosco and [[Empanada]], which is a typical Latin American pastry, including a variety of different ingredients, either with meat or vegetarian, mostly fried. Another kind of pastry is the [[pastelito]], with the only difference in comparison to [[empanada]]s is that they are bigger.{{citation needed|date=July 2018}}

Typical Panamanian foods are mild-flavored, without the pungency of some of Panama's Latin American and Caribbean neighbors. Common ingredients are [[maize]], [[rice]], [[wheat]] flour, [[Plantain (cooking)|plantain]]s, ''yuca'' ([[cassava]]), beef, chicken, pork and seafood.

===Sports===
[[File:Roberto-Duran-1994 (cropped).png|thumb|Four-weight world boxing champion Roberto Durán]]

In a 2024 survey, 48% of Panamanians said baseball was their favorite sport, 30% said [[association football|football]] (soccer), 4% boxing, chess and tennis.<ref>{{Cite web |last=Caballero |first=Boris Alexander Cruz |date=2024-12-01 |title=Participa de la encuesta para determinar el deporte que más gusta en Panamá |url=https://www.tvn-2.com/tvmax/mas-deportes/encuesta-deporte-boxeo-beisbol-tenis-futbol-flag-football-panama-noticias-de-panama-hoy_11_2167451.html |access-date=2025-04-30 |website=Tvn Panamá |language=es}}</ref>

Baseball is the most popular sport in Panama. The [[Panamanian Professional Baseball League]] is the country's professional winter league. It was first held in 1946, but had multiple interruptions spanning several decades. The [[Panama national baseball team]] has earned one silver medal and two bronze medals at the [[Baseball World Cup]]. At least [[List of Major League Baseball players from Panama|140 Panamanian players]] have played professional baseball in the United States, more than any other Central American country.<ref>{{cite web |url=http://www.thebaseballcube.com/cities/PN.shtml |title=Baseball in Panama |publisher=The Baseball Cube |access-date=December 23, 2010 |archive-date=July 20, 2010 |archive-url=https://web.archive.org/web/20100720044412/http://www.thebaseballcube.com/cities/PN.shtml |url-status=dead }}</ref>

Football is the second most popular sport in Panama. The top tier of domestic Panamanian football, [[Liga Panameña de Fútbol]], was founded in 1988. The [[Panama national football team|men's national team]] appeared at the [[FIFA World Cup]] for the first time in [[2018 FIFA World Cup|2018]], appearing in group G, facing [[Belgium national football team|Belgium]], [[England national football team|England]] and [[Tunisia national football team|Tunisia]]. However, the team lost all three games, failing to advance past the group stage.

Club competition is played in the [[Liga de Fútbol Femenino (Panamá)|Liga de Fútbol Femenino]]. The [[Panama women's national football team|women's national team]] debuted in the [[FIFA Women's World Cup|World Cup]] in [[2023 FIFA Women's World Cup|2023]] as the final team to qualify. They joined Group F with [[Brazil women's national football team|Brazil]], [[Jamaica women's national football team|Jamaica]], and [[France women's national football team|France]], where they finished last with three losses but scored three goals against France. [[Marta Cox]] scored Panama's first ever goal at a World Cup.

Basketball is also popular in Panama. There are regional teams as well as a squad that competes internationally.

Other popular sports include [[volleyball]], [[taekwondo]], [[golf]], and [[tennis]]. A long-distance hiking trail called the [[TransPanama Trail]]<ref>[https://web.archive.org/web/20160728065540/http://www.transpanama.org/ TransPanama Trail]</ref> is being built from Colombia to Costa Rica. [[Panama's women's national volleyball team]] competes in Central America's AFECAVOL (Asociación de Federaciones CentroAmericanas de Voleibol) zone.<ref>{{cite news |title=Belize drops game to Nicaragua, drops to 1-4 at Central American Senior Women's Volleyball Championship |url=https://www.breakingbelizenews.com/2021/10/23/belize-drops-game-to-nicaragua-drops-to-1-4-at-central-american-senior-womens-volleyball-championship/ |accessdate=December 28, 2021 |work=[[Breaking Belize News]] |date=October 23, 2021 |archive-date=April 4, 2023 |archive-url=https://web.archive.org/web/20230404035656/https://www.breakingbelizenews.com/2021/10/23/belize-drops-game-to-nicaragua-drops-to-1-4-at-central-american-senior-womens-volleyball-championship/ |url-status=live }}</ref>

Other non-traditional sports in the country have had great importance such as the [[triathlon]] that has captured the attention of many athletes nationwide and the country has hosted international competitions. [[Flag football]] has also been growing in popularity in both men and women and with international participation in world of this discipline being among the best teams in the world, the sport was introduced by Americans residing in the Canal Zone for veterans and retirees who even had a festival called the Turkey Ball. Other popular sports are [[American football]], [[rugby football|rugby]], [[field hockey]], [[softball]], and other amateur sports, including [[skateboarding]], [[BMX]], and [[surfing]], because the many beaches of Panama such as Santa Catalina and Venao that have hosted events the likes of ISA World Surfing Games.

Professional boxers from Panama to be inducted in the [[International Boxing Hall of Fame]] include the first Latin American to be a world boxing champion, [[Panama Al Brown]], as well as [[ismael Laguna]], [[Roberto Duran]], [[Eusebio Pedroza]] and [[Hilario Zapata]].

==See also==
{{Portal|Panama|Latin America}}
* [[Index of Panama-related articles]]
* [[Outline of Panama]]

== Notes ==
{{Notelist}}

==References==
{{Reflist}}

==Further reading==
{{refbegin}}
* Buckley, Kevin, ''Panama'', Touchstone, 1992. {{ISBN|0-671-77876-5}}
* Diaz Espino, Ovidio, ''How Wall Street Created a Nation'', Four Walls Eight Windows, 2001. {{ISBN|1-56858-196-3}}
* Gropp, Arthur E. ''Libraries and Archives of Panama: with Information on Private Libraries, Bookbinding, Bookselling, and Printing.'' New Orleans: Middle American Research Institute, Tulane University of Louisiana, 1941.
* Harding, Robert C., ''The History of Panama'', Greenwood Publishing, 2006.
* Harding, Robert C., ''Military Foundations of Panamanian Politics'', Transaction Publishers, 2001. {{ISBN|0-393-02696-5}}
* Joster, R.M. and Sanchez, Guillermo, ''In the Time of the Tyrants, Panama: 1968–1990'', W.W. Norton & Company, 1990.
* {{cite book |last=McCullough |first=David |author-link=David McCullough |title=The Path Between the Seas: The Creation of the Panama Canal, 1870–1914 |publisher=Simon & Schuster |location=New York |year=1977 |isbn=0-671-24409-4 |url=https://archive.org/details/pathbetweenseas00mccu}}
* Porras, Ana Elena, ''Cultura de la Interoceanidad: Narrativas de Identidad Nacional de Panama (1990–2002)'', Editorial Carlos Manuel Gasteazoro, 2005. {{ISBN|9962-53-131-4}}
* Serrano, Damaris, ''La Nación Panamena en sus Espacios: Cultura Popular, Resistencia y Globalización'', Editorial Mariano Arosemena, 2005. {{ISBN|9962-659-01-9}}
* Villarreal, Melquiades, ''Esperanza o Realidad: Fronteras de la Identidad Panamena'', Editorial Mariano Arosemena, 2004. {{ISBN|9962-601-80-0}}
* Weeks, John and Gunson, Phil, ''Panama. Made in the USA'', 1992. {{ISBN|978-0-906156-55-1}}
{{refend}}

== External links ==
{{Sister project links|voy=Panama|collapsible=collapsed}}
* {{Official website|https://www.presidencia.gob.pa/}}, President of Panama {{in lang|es}}
* [https://www.presidencia.gob.pa/pagina/ministros Cabinet of Panama] {{in lang|es}}
* [https://mire.gob.pa/  Ministry of External Relations] {{in lang|es}}
* [https://www.asamblea.gob.pa/ National Assembly of Panama] {{in lang|es}}
* [http://news.bbc.co.uk/2/hi/americas/country_profiles/1229332.stm Panama] from [[BBC News]]
* {{Wikiatlas|Panama}}
*

{{Anchor|Topics}}
{{Panama topics}}
{{Central America topic}}
{{North America topic}}
{{Authority control}}

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