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This page was last updated on 13 December, 2007
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| Introduction | Panama | Top of Page

Background: | Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Venezuela, and Ecuador - named the Republic of Gran Colombia. When the latter dissolved in 1830, Panama remained part of Colombia. With US backing, Panama seceded from Colombia in 1903 and promptly signed a treaty with the US allowing for the construction of a canal and US sovereignty over a strip of land on either side of the structure (the Panama Canal Zone). The Panama Canal was built by the US Army Corps of Engineers between 1904 and 1914. In 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of the century. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the subsequent decades. With US help, dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the area supporting the Canal, and remaining US military bases were transferred to Panama by the end of 1999. In October 2006, Panamanians approved an ambitious plan to expand the Canal. The project, which is to begin in 2007 and could double the Canal's capacity, is expected to be completed in 2014-15.

| Geography | Panama | Top of Page

Location: | Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica
Geographic coordinates: | 9 00 N, 80 00 W
Map references: | Central America and the Caribbean
Area: | total: 78,200 sq km land: 75,990 sq km water: 2,210 sq km
Area - comparative: | slightly smaller than South Carolina
Land boundaries: | total: 555 km border countries: Colombia 225 km, Costa Rica 330 km
Coastline: | 2,490 km
Maritime claims: | territorial sea: 12 nm contiguous zone: 24 nm exclusive economic zone: 200 nm or edge of continental margin
Climate: | tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May)
Terrain: | interior mostly steep, rugged mountains and dissected, upland plains; coastal areas largely plains and rolling hills
Elevation extremes: | lowest point: Pacific Ocean 0 m highest point: Volcan Baru 3,475 m
Natural resources: | copper, mahogany forests, shrimp, hydropower
Land use: | arable land: 7.26% permanent crops: 1.95% other: 90.79% (2005)
Irrigated land: | 430 sq km (2003)
Natural hazards: | occasional severe storms and forest fires in the Darien area
Environment - current issues: | water pollution from agricultural runoff threatens fishery resources; deforestation of tropical rain forest; land degradation and soil erosion threatens siltation of Panama Canal; air pollution in urban areas; mining threatens natural resources
Environment - international agreements: | party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling signed, but not ratified: Marine Life Conservation
Geography - note: | strategic location on eastern end of isthmus forming land bridge connecting North and South America; controls Panama Canal that links North Atlantic Ocean via Caribbean Sea with North Pacific Ocean

| People | Panama | Top of Page

Population: | 3,242,173 (July 2007 est.)
Age structure: | 0-14 years: 30% (male 496,195/female 476,508) 15-64 years: 63.6% (male 1,044,139/female 1,016,805) 65 years and over: 6.4% (male 97,365/female 111,161) (2007 est.)
Median age: | total: 26.4 years male: 26 years female: 26.7 years (2007 est.)
Population growth rate: | 1.564% (2007 est.)
Birth rate: | 21.45 births/1,000 population (2007 est.)
Death rate: | 5.44 deaths/1,000 population (2007 est.)
Net migration rate: | -0.37 migrant(s)/1,000 population (2007 est.)
Sex ratio: | at birth: 1.05 male(s)/female under 15 years: 1.041 male(s)/female 15-64 years: 1.027 male(s)/female 65 years and over: 0.876 male(s)/female total population: 1.021 male(s)/female (2007 est.)
Infant mortality rate: | total: 15.96 deaths/1,000 live births male: 17.33 deaths/1,000 live births female: 14.54 deaths/1,000 live births (2007 est.)
Life expectancy at birth: | total population: 75.19 years male: 72.69 years female: 77.8 years (2007 est.)
Total fertility rate: | 2.66 children born/woman (2007 est.)
HIV/AIDS - adult prevalence rate: | 0.9% (2003 est.)
HIV/AIDS - people living with HIV/AIDS: | 16,000 (2003 est.)
HIV/AIDS - deaths: | less than 500 (2003 est.)
Nationality: | noun: Panamanian(s) adjective: Panamanian
Ethnic groups: | mestizo (mixed Amerindian and white) 70%, Amerindian and mixed (West Indian) 14%, white 10%, Amerindian 6%
Religions: | Roman Catholic 85%, Protestant 15%
Languages: | Spanish (official), English 14%; note - many Panamanians bilingual
Literacy: | definition: age 15 and over can read and write total population: 91.9% male: 92.5% female: 91.2% (2000 census)

| Government | Panama | Top of Page

Country name: | conventional long form: Republic of Panama conventional short form: Panama local long form: Republica de Panama local short form: Panama
Government type: | constitutional democracy
Capital: | name: Panama geographic coordinates: 8 58 N, 79 32 W time difference: UTC-5 (same time as Washington, DC during Standard Time)
Administrative divisions: | 9 provinces (provincias, singular - provincia) and 1 territory* (comarca); Bocas del Toro, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos, Panama, San Blas*(Kuna Yala), and Veraguas
Independence: | 3 November 1903 (from Colombia; became independent from Spain 28 November 1821)
National holiday: | Independence Day, 3 November (1903)
Constitution: | 11 October 1972; major reforms adopted 1978, 1983, 1994, and 2004
Legal system: | based on civil law system; judicial review of legislative acts in the Supreme Court of Justice; accepts compulsory ICJ jurisdiction with reservations
Suffrage: | 18 years of age; universal and compulsory
Executive branch: | chief of state: President Martin TORRIJOS Espino (since 1 September 2004); First Vice President Samuel LEWIS Navarro (since 1 September 2004); Second Vice President Ruben AROSEMENA Valdes (since 1 September 2004); note - the president is both the chief of state and head of government head of government: President Martin TORRIJOS Espino (since 1 September 2004); First Vice President Samuel LEWIS Navarro (since 1 September 2004); Second Vice President Ruben AROSEMENA Valdes (since 1 September 2004) cabinet: Cabinet appointed by the president elections: president and vice presidents elected on the same ticket by popular vote for five-year terms (eligible for two more terms); election last held 2 May 2004 (next to be held on 3 May 2009); note - beginning in 2009, Panama will have only one vice president. election results: Martin TORRIJOS Espino elected president; percent of vote - Martin TORRIJOS Espino 47.5%, Guillermo ENDARA Galimany 30.6%, Jose Miguel ALEMAN 17%, Ricardo MARTINELLI 4.9% note: government coalition - PRD (Democratic Revolutionary Party), PP (Popular Party)
Legislative branch: | unicameral National Assembly or Asamblea Nacional (78 seats; members are elected by popular vote to serve five-year terms); note - in 2009, the number of seats will change to 71 elections: last held 2 May 2004 (next to be held 3 May 2009) election results: percent of vote by party - NA; seats by party - PRD 41, PA 17, PS 9, MOLIRENA 4, CD 3, PLN 3, PP 1 note: legislators from outlying rural districts are chosen on a plurality basis while districts located in more populous towns and cities elect multiple legislators by means of a proportion-based formula
Judicial branch: | Supreme Court of Justice or Corte Suprema de Justicia (nine judges appointed for 10-year terms); five superior courts; three courts of appeal
Political parties and leaders: | Democratic Change or CD [Ricardo MARTINELLI]; Democratic Revolutionary Party or PRD [Hugo GUIRAUD]; Liberal Party or PLN [Joaquin F. Franco VASQUEZ]; Nationalist Republican Liberal Movement or MOLIRENA [Gisela CHUNG]; Panamenista Party or PA [Juan Carlos VARELA] (formerly the Arnulfista Party); Patriotic Union Party or PUP [Jose Raul MULINO and Anibal GALINDO]; Popular Party or PP [Rene ORILLAC] (formerly Christian Democratic Party or PDC); Solidarity Party or PS
Political pressure groups and leaders: | Chamber of Commerce; National Civic Crusade; National Council of Organized Workers or CONATO; National Council of Private Enterprise or CONEP; National Union of Construction and Similar Workers (SUNTRACS); Panamanian Association of Business Executives or APEDE; Panamanian Industrialists Society or SIP; Workers Confederation of the Republic of Panama or CTRP
International organization participation: | CAN (observer), CSN (observer), FAO, G-77, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAES, LAIA (observer), MIGA, NAM, OAS, OPANAL, OPCW, PCA, RG, UN, UNCTAD, UNESCO, UNIDO, Union Latina, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO
Diplomatic representation in the US: | chief of mission: Ambassador Federico HUMBERT Arias chancery: 2862 McGill Terrace NW, Washington, DC 20008 telephone: [1] (202) 483-1407 FAX: [1] (202) 483-8416 consulate(s) general: Atlanta, Houston, Miami, New Orleans, New York, Philadelphia, San Francisco, San Juan (Puerto Rico), Tampa
Diplomatic representation from the US: | chief of mission: Ambassador William A. EATON embassy: Avenida Balboa and Calle 37, Apartado Postal 0816-02561, Zona 5, Panama City 5 mailing address: American Embassy Panama, Unit 0945, APO AA 34002 telephone: [507] 207-7000 FAX: [507] 227-1964
Flag description: | divided into four, equal rectangles; the top quadrants are white (hoist side) with a blue five-pointed star in the center and plain red; the bottom quadrants are plain blue (hoist side) and white with a red five-pointed star in the center

| Economy | Panama | Top of Page

Economy - overview: | Panama's dollarized economy rests primarily on a well-developed services sector that accounts for three-fourths of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump in the Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth in 2000-03; growth picked up in 2004-06 led by export-oriented services and a construction boom stimulated by tax incentives. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. Unemployment remains high. In October 2006, voters passed a referendum to expand the Panama Canal to accommodate ships that are now too large to transverse the transoceanic crossway. Not a CAFTA signatory, Panama in December 2006 independently negotiated a free trade agreement with the US, which, when implemented, will help promote the country's economic growth.
GDP (purchasing power parity): | $26.16 billion (2006 est.)
GDP (official exchange rate): | $16.47 billion (2006 est.)
GDP - real growth rate: | 8.1% (2006 est.)
GDP - per capita (PPP): | $8,200 (2006 est.)
GDP - composition by sector: | agriculture: 7.3% industry: 16.5% services: 76.3% (2006 est.)
Labor force: | 1.439 million note: shortage of skilled labor, but an oversupply of unskilled labor (2006 est.)
Labor force - by occupation: | agriculture: 20.8% industry: 18% services: 61.2% (1995 est.)
Unemployment rate: | 8.8% (2006 est.)
Population below poverty line: | 37% (1999 est.)
Household income or consumption by percentage share: | lowest 10%: 0.7% highest 10%: 43% (2003)
Distribution of family income - Gini index: | 56.1 (2003)
Inflation rate (consumer prices): | 1.1% (2006 est.)
Investment (gross fixed): | 15.3% of GDP (2006 est.)
Budget: | revenues: $4.283 billion expenditures: $4.195 billion (2006 est.)
Public debt: | 58.4% of GDP (2006 est.)
Agriculture - products: | bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp
Industries: | construction, brewing, cement and other construction materials, sugar milling
Industrial production growth rate: | 3% (2006 est.)
Electricity - production: | 5.661 billion kWh (2005)
Electricity - consumption: | 4.735 billion kWh (2005)
Electricity - exports: | 51 million kWh (2005)
Electricity - imports: | 55 million kWh (2005)
Oil - production: | 0 bbl/day (2004 est.)
Oil - consumption: | 79,000 bbl/day (2004 est.)
Oil - exports: | NA bbl/day
Oil - imports: | NA bbl/day
Oil - proved reserves: | 0 bbl (1 January 2006)
Natural gas - production: | 0 cu m (2005 est.)
Natural gas - consumption: | 0 cu m (2005 est.)
Current account balance: | $-378.2 million (2006 est.)
Exports: | $8.509 billion f.o.b.; note - includes the Colon Free Zone (2006 est.)
Exports - commodities: | bananas, shrimp, sugar, coffee, clothing
Exports - partners: | US 39.8%, Spain 8.1%, Netherlands 6.7%, Sweden 5.6%, Costa Rica 4.5% (2006)
Imports: | $10.31 billion f.o.b. (includes the Colon Free Zone) (2006 est.)
Imports - commodities: | capital goods, foodstuffs, consumer goods, chemicals
Imports - partners: | US 27%, Netherlands Antilles 10.1%, Costa Rica 5.1%, Japan 4.7% (2006)
Economic aid - recipient: | $19.54 million (2005)
Reserves of foreign exchange and gold: | $1.335 billion (2006 est.)
Debt - external: | $9.972 billion (2006 est.)
Stock of direct foreign investment - at home: | $NA
Stock of direct foreign investment - abroad: | $NA
Market value of publicly traded shares: | $5.074 billion (2005)
Currency (code): | balboa (PAB); US dollar (USD)
Exchange rates: | balboas per US dollar - 1 (2006), 1 (2005), 1 (2004), 1 (2003), 1 (2002)
Fiscal year: | calendar year

| Communications | Panama | Top of Page

Telephones - main lines in use: | 432,900 (2006)
Telephones - mobile cellular: | 1.694 million (2005)
Telephone system: | general assessment: domestic and international facilities well developed domestic: NA international: country code - 507; 1 coaxial submarine cable; satellite earth stations - 2 Intelsat (Atlantic Ocean); connected to the Central American Microwave System
Radio broadcast stations: | AM 101, FM 134, shortwave 0 (1998)
Television broadcast stations: | 38 (including repeaters) (1998)
Internet country code: | .pa
Internet hosts: | 7,078 (2007)
Internet users: | 220,000 (2006)

| Transportation | Panama | Top of Page

Airports: | 116 (2007)
Airports - with paved runways: | total: 54 over 3,047 m: 1 2,438 to 3,047 m: 1 1,524 to 2,437 m: 5 914 to 1,523 m: 18 under 914 m: 29 (2007)
Airports - with unpaved runways: | total: 62 1,524 to 2,437 m: 1 914 to 1,523 m: 11 under 914 m: 50 (2007)
Heliports: | 2 (2007)
Railways: | total: 355 km standard gauge: 77 km 1.435-m gauge narrow gauge: 278 km 0.914-m gauge (2006)
Roadways: | total: 11,643 km paved: 4,028 km unpaved: 7,615 km (2000)
Waterways: | 800 km (includes 82 km Panama Canal) (2007)
Merchant marine: | total: 5,764 ships (1000 GRT or over) 159,649,801 GRT/240,190,316 DWT by type: barge carrier 2, bulk carrier 1,940, cargo 1,034, carrier 3, chemical tanker 507, combination ore/oil 6, container 710, liquefied gas 191, livestock carrier 7, passenger 46, passenger/cargo 72, petroleum tanker 522, refrigerated cargo 288, roll on/roll off 129, specialized tanker 22, vehicle carrier 285 foreign-owned: 4,949 (Albania 1, Argentina 8, Australia 4, Bahamas 2, Bangladesh 1, Belgium 11, Bulgaria 1, Canada 17, Chile 8, China 473, Colombia 4, Croatia 6, Cuba 11, Cyprus 15, Denmark 32, Dominican Republic 1, Ecuador 2, Egypt 13, Estonia 3, France 15, Gabon 1, Germany 38, Greece 505, Hong Kong 137, India 25, Indonesia 37, Iran 4, Ireland 1, Israel 2, Italy 10, Jamaica 1, Japan 2,151, Jordan 11, South Korea 316, Kuwait 1, Latvia 5, Lebanon 3, Lithuania 5, Malaysia 14, Maldives 1, Malta 2, Mexico 4, Monaco 11, Netherlands 14, Nigeria 6, Norway 60, Oman 1, Pakistan 5, Peru 15, Philippines 12, Poland 15, Portugal 9, Qatar 1, Romania 8, Russia 9, Saudi Arabia 14, Singapore 83, Spain 61, Sri Lanka 3, Sweden 9, Switzerland 26, Syria 24, Taiwan 306, Thailand 10, Turkey 53, Turks and Caicos Islands 1, Ukraine 8, UAE 108, UK 35, US 115, Venezuela 10, Vietnam 10, Yemen 5) registered in other countries: 1 (Venezuela 1) (2007)
Ports and terminals: | Balboa, Colon, Cristobal

| Military | Panama | Top of Page

Military branches: | an amendment to the Constitution abolished the armed forces, but there are security forces (Panamanian Public Forces or PPF includes the Panamanian National Police, National Maritime Service, and National Air Service)
Manpower available for military service: | males age 18-49: 751,065 (2005 est.)
Manpower fit for military service: | males age 18-49: 591,604 (2005 est.)
Manpower reaching military service age annually: | males age 18-49: 29,724
Military expenditures - percent of GDP: | 1% (2006)
Military - note: | on 10 February 1990, the government of then President ENDARA abolished Panama's military and reformed the security apparatus by creating the Panamanian Public Forces; in October 1994, Panama's Legislative Assembly approved a constitutional amendment prohibiting the creation of a standing military force, but allowing the temporary establishment of special police units to counter acts of "external aggression"

| Transnational Issues | Panama | Top of Page

Disputes - international: | organized illegal narcotics operations in Colombia operate within the remote border region with Panama
Illicit drugs: | major cocaine transshipment point and primary money-laundering center for narcotics revenue; money-laundering activity is especially heavy in the Colon Free Zone; offshore financial center; negligible signs of coca cultivation; monitoring of financial transactions is improving; official corruption remains a major problem

This page was last updated on 13 December, 2007