Background: 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. On 7 September 1977 an agreement was signed for the complete transfer of the Canal from the US to Panama by 1999. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the intervening years. With US help dictator Manuel NORIEGA was deposed in 1989.

Map reference: Central America and the Caribbean, South America, Standard Time Zones of the World

Area
Total area total: 78,200 km²
Land: 75,990 km²

Land boundaries: total 555 km, Colombia 225 km, Costa Rica 330 km

Coastline: 2,490 km

Maritime claims: territorial sea:200 nm

Climate: tropical; 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

Natural resources: copper, mahogany forests, shrimp

Land use
Arable land: 6%
Permanent crops: 2%
Meadows and pastures: 15%
Forest and woodland: 54%
Other: 23%

Irrigated land: 320 km² (1989 est.)

Natural hazards: NA

Geography
Note: strategic location on eastern end of isthmus forming land bridge connecting North and South America; controls Panama Canal that links North Atlantic Ocean via Caribbean Sea with North Pacific Ocean

Population: 2.63 million (July 1994 est.)
Growth rate: 1.94% (1994 est.)

Nationality: noun:Panamanian(s)

Ethnic groups: mestizo (mixed Indian and European ancestry) 70%, West Indian 14%, white 10%, Indian 6%

Languages: Spanish (official), English 14%
Note: many Panamanians bilingual

Religions: Roman Catholic 85%, Protestant 15%

Population growth rate: 1.94% (1994 est.)

Birth rate: 24.61 births/1000 population (1994 est.)

Death rate: 4.87 deaths/1000 population (1994 est.)

Net migration rate: -0.37 migrant(s)/1000 population (1994 est.)

Environment
Current issues: water pollution from agricultural runoff threatens fishery resources; deforestation of tropical rain forest; land degradation

Infant mortality rate: 16.5 deaths/1000 live births (1994 est.)

Life expectancy at birth
Total population: 74.88 years
Male: 72.28 years
Female: 77.62 years (1994 est.)

Total fertility rate: 2.85 children born/woman (1994 est.)

Literacy: age 15 and over can read and write (1990 est.)
Total population: 88%
Male: 88%
Female: 88%

Country name
Conventional long form: Republic of Panama
Conventional short form:

Government type: constitutional republic

Capital: Administrative divisions:9 provinces (provincias, singular - provincia) and 1 territory* (comarca; Bocas del Toro, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos, Panama, San Blas*, 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 April 1983

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 and head of government:President Guillermo ENDARA (since 20 December 1989, elected 7 May 1989); First Vice President Guillermo FORD Boyd (since 24 December 1992); Second Vice President (vacant); election last held on 7 May 1989, annulled but later upheld; results - anti-NORIEGA coalition believed to have won about 75% of the total votes cast
Note: a presidential election was held 8 May 1994 (next election to held on 9 May 1999) with inauguration of the successful candidates to take place on 1 September 1994; results - President Ernesto PEREZ BALLADARES Gonzales, First Vice President Tomas Altamirano DUQUE, and Second Vice President Felipe VIRZI were elected; percent of vote for president - BALLADARES 33%, DE GRUBER 29%, BLADES 17%

Legislative branch: Panamanian Public Forces (PPF) includes the National Police, Maritime Service, National Air Service, Institutional Protective Service; Judicial Technical Police operate under the control of Panama's judicial branch
National Assembly Asamblea Nacional: elections held on 27 January 1991; results - percent of vote by party NA; seats - (67 total)
Progovernment parties: PDC 28, MOLIRENA 15, PA 8, PLA 4
Opposition parties: PRD 10, PALA 1, PL 1; note - the PDC went into opposition after President Guillermo ENDARA ousted the PDC from the coalition government in April 1991; an election of members of the National Assembly was held on 8 May 1994 (next election to be held on 9 May 1999) and they will take their seats on 1 September 1994; results - percent of vote and seats won by party NA

Judicial branch: Supreme Court of Justice (Corte Suprema de Justicia), 5 superior courts, 3 courts of appeal

International organization participation: AG (associate), CG, ECLAC, FAO, G-77, IADB, IAEA, IBRD, ICAO, ICFTU, IDA, IFAD, IFC, ILO, IMF, IMO, INMARSAT, INTELSAT, INTERPOL, IOC, IOM, ITU, LAES, LAIA (observer), LORCS, NAM, OAS, OPANAL, PCA, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WFTU, WHO, WIPO, WMO, WTO

Diplomatic representation
From the us chief of mission: (vacant)
From the us chancery: 2,862 McGill Terrace NW, Washington, DC 20,008
From the us telephone: (507) 27-1777
From the us consulates general: Atlanta, Houston, Miami, New Orleans, New York, San Francisco, San Juan (Puerto Rico), Tampa,
From the us embassy: Avenida Balboa and Calle 38, Apartado 6,959, Panama City 5
From the us mailing address: American Embassy Panama, Unit 0945; APO AA 34,002
From the us fax: (507) 27-1964

Flag description: divided into four, equal rectangles; the top quadrants are white (hoist side) with a blue five-pointed star in the center and plain red, the bottom quadrants are plain blue (hoist side) and white with a red five-pointed star in the center

Economy overview: GDP expanded by roughly 5.9% in 1993, following growth of 8% in 1992; banking and financial services led the way in 1993. The economy thus continues to recover from the crisis that preceded the ouster of Manuel NORIEGA, even though the government's structural adjustment program has been hampered by a lack of popular support and a passive administration. Public investment has been limited as the administration has kept the fiscal deficit below 2% of GDP. Unemployment and economic reform are the two major issues the new government must face in 1994-95.

Real gdp growth rate: 5.9% (1993 est.)

Real gdp per capita: $4,500 (1993 est.)

Agriculture products: accounts for 10% of GDP (1992 est.), 27% of labor force (1992; crops - bananas, rice, corn, coffee, sugarcane; livestock; fishing; importer of food grain, vegetables

Industries: manufacturing and construction activities, petroleum refining, brewing, cement and other construction material, sugar milling

Industrial production growth rate: 7% (1993 est.), accounts for about 9% of GDP

Labor force: 921,000 (1992 est.)
By occupation governmentandcommunityservices: 31.8%
By occupation agriculture hunting and fishing: 26.8%
By occupation commerce restaurants and hotels: 16.4%
By occupation manufacturing and mining: 9.4%
By occupation construction: 3.2%
By occupation transportationandcommunications: 6.2%
By occupation finance insurance andrealestate: 4.3%
By occupation note: shortage of skilled labor, but an oversupply of unskilled labor

Unemployment rate: 12.5% (1993 est.)

Budget: revenues:$1.8 billion

Fiscal year: calendar year

Exports: $545 million (f.o.b., 1993 est.)
Commodities: bananas 43%, shrimp 11%, sugar 4%, clothing 5%, coffee 2%
Partners: US 38%, EC, Central America and Caribbean

Imports: $2.5 billion (f.o.b., 1993 est.)
Commodities: capital goods 21%, crude oil 11%, foodstuffs 9%, consumer goods, chemicals
Partners: US 35%, EC, Central America and Caribbean, Japan

Debt external: $6.1 billion (year-end 1993 est.)

Exchange rates: balboas (B) per US$1 - 1.000 (fixed rate)

Electricity
Capacity: 1,584,000 kW
Production: 4.36 trillion kWh
Consumption per capita: 720 kWh (1992)

Military expenditures
Dollar figure: expenditures for the Panamanian security forces amounted to $138.5 million, 1.0% of GDP (1993 est.)

Airports: 118
Usable: 109
With permanentsurface runways: 38
With runways over 3659 m: 0
With runways 2440-3659 m: 2
With runways 1220-2439 m: 15

Pipelines: crude oil 130 km

Waterways: 800 km navigable by shallow draft vessels; 82 km Panama Canal

Merchant marine: 3,405 ships (1,000 GRT or over) totaling 56,011,824 GRT/89,516,566 DWT, barge carrier 1, bulk 717, cargo 1,110, chemical tanker 181, combination bulk 31, combination ore/oil 24, container 215, liquefied gas 127, livestock carrier 9, multifunction large-load carrier 5, oil tanker 437, passenger 22, passenger-cargo 3, refrigerated cargo 287, roll-on/roll-off cargo 67, short-sea passenger 30, specialized tanker 10, vehicle carrier 129
Note: all but 30 are foreign owned and operated; the top 4 foreign owners are Japan 34%, Greece 8%, Hong Kong 7%, and Taiwan 5%; other foreign owners include China at least 144 ships, Vietnam 3, Croatia 6, Cuba 4, Cyprus 4, and Russia 41

Disputes international: none

Illicit drugs: major cocaine transshipment point and drug money laundering center