Background: Explored and settled by the Spanish in the 16th century Panama broke with Spain in 1821 and joined a union of Colombia Ecuador and Venezuela - 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 (estimated to cost $5.3 billion) to expand the Canal. The project which began in 2007 and could double the Canal's capacity is expected to be completed in 2015.

Geographic coordinates: 9 00 N 80 00 W

Area
Rank: 118
Land: 74,340 km²
Water: 1080 km²
Comparative: slightly smaller than South Carolina

Land boundaries
Border countries: (2) Colombia 225 km; Costa Rica 330 km

Coastline: 2,490 km

Maritime claims
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 highest point: Volcan Baru 3,475 m

Natural resources: copper mahogany forests shrimp hydropower

Land use
Permanent crops: 2.51%
Other: 90.33% (2011)

Irrigated land: 346.2 km² (2003)

Total renewable water resources: 148 km³ (2011)

Natural hazards: occasional severe storms and forest fires in the Darien area

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

Population: 3,608,431 (July 2014 est.)
Rank: 131
Growth rate: 1.35% (2014 est.)
Growth rate rank: 91
Below poverty line: 26% (2012 est.)

Nationality
Adjective: Panamanian

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

Languages: Spanish (official) English 14%

Religions: Roman Catholic 85% Protestant 15%

Demographic profile:

Age structure
15-24 years: 17.3% (male 317,875/female 306,378)
25-54 years: 40.1% (male 733,588/female 714,859)
55-64 years: 7.4% (male 131,899/female 135,015)
65 years and over: 7.6% (male 129,091/female 150,850) (2014 est.)

Dependency ratios
Youth dependency ratio: 43.2 %
Elderly dependency ratio: 11.4 %
Potential support ratio: 8.7 (2014 est.)

Median age
Male: 27.9 years
Female: 28.7 years (2014 est.)

Population growth rate: 1.35% (2014 est.)
Rank: 91

Birth rate: 18.61 births/1000 population (2014 est.)
Rank: 98

Death rate: 4.77 deaths/1000 population (2014 est.)
Rank: 197

Net migration rate: -0.32 migrant(s)/1000 population (2014 est.)
Rank: 126

Urbanization
Rate of urbanization: 2.23% annual rate of change (2010-15 est.)

Major urban areas
Population: PANAMA CITY (capital) 1.426 million (2011)

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
International agreements signed but not ratified: Marine Life Conservation

Sex ratio
0-14 years: 1.04 male(s)/female
15-24 years: 1.04 male(s)/female
25-54 years: 1.03 male(s)/female
55-64 years: 1.01 male(s)/female
65 years and over: 0.86 male(s)/female
Total population: 1.02 male(s)/female (2014 est.)

Infant mortality rate
Rank: 135
Male: 11.46 deaths/1000 live births
Female: 9.92 deaths/1000 live births (2014 est.)

Life expectancy at birth
Rank: 56
Male: 75.51 years
Female: 81.22 years (2014 est.)

Total fertility rate: 2.38 children born/woman (2014 est.)
Rank: 85

Contraceptive prevalence rate: 52.2% (2009)

Drinking water source:

Physicians density: 1.5 physicians/1000 population (2000)

Hospital bed density: 2.4 beds/1000 population (2010)

Sanitation facility access:

Hivaids
Adult prevalence rate: 0.7% (2012 est.)
Adult prevalence rate rank: 57
People living with hivaids: 16,700 (2012 est.)
People living with hivaids rank: 87
Deaths: 600 (2012 est.)
Deaths rank: 86

Major infectious diseases
Food or waterborne diseases: bacterial diarrhea
Vectorborne disease: dengue fever (2013)

Obesity adult prevalence rate: 25.4% (2008)
Rank: 55

Children under the age of 5 years underweight: 3.9% (2008)
Rank: 99

Education expenditures: 3.5% of GDP (2011)
Rank: 122

Literacy
Total population: 94.1%
Male: 94.7%
Female: 93.5% (2010 est.)

School life expectancy primary to tertiary education
Male: 12 years
Female: 13 years (2011)

Country name
Conventional short form: Panama
Local long form: Republica de Panama
Local short form: Panama

Government type: constitutional democracy

Capital
Geographic coordinates: 8 58 N 79 32 W
Time difference: UTC-5 (same time as Washington DC during Standard Time)

Administrative divisions: 10 provinces (provincias singular - provincia) and 3 indigenous territories* (comarcas); Bocas del Toro Chiriqui Cocle Colon Darien Embera-Wounaan* Herrera Kuna Yala* Los Santos Ngobe-Bugle* Panama Panama Oeste Veraguas

Independence: 3 November 1903 (from Colombia; became independent from Spain on 28 November 1821)

National holiday: Independence Day 3 November (1903)

Constitution: several previous; latest effective 11 October 1972; amended several times last in 2004 (2010)

Legal system: civil law system; judicial review of legislative acts in the Supreme Court of Justice

International law organization participation: accepts compulsory ICJ jurisdiction with reservations; accepts ICCt jurisdiction

Suffrage: 18 years of age; universal and compulsory

Executive branch
Head of government: President Ricardo MARTINELLI Berrocal (since 1 July 2009); Vice President Juan Carlos VARELA Rodriguez (since 1 July 2009)
Cabinet: Cabinet appointed by the president
Elections: president and vice president elected on the same ticket by popular vote for five-year terms (president not eligible for immediate reelection and must sit out two additional terms (10 years) before becoming eligible for reelection); election last held on 3 May 2009 (next to be held in May 2014)
Election results: Juan Carlos VARELA elected president; percent of vote - Juan Carlos VARELA 39.1% Jose Domingo ARIAS 31.4% Juan Carlos NAVARRO 28.2% other 1.3%; note - Juan Carlos VARELA is expected to take office 1 July 2014

Legislative branch: unicameral National Assembly or Asamblea Nacional (71 seats; members elected by popular vote to serve five-year terms)
Elections: last held on 3 May 2009 (next to be held in May 2014)
Election results: percent of vote by party - NA; seats by party - PRD 26 Panamenista 22 CD 14 UP 4 MOLIRENA 2 PP 1 independents 2; note - changes in political affiliation now reflect the following seat distribution: as of 13 February 2013 - seats by party - CD 36 PRD 17 Panamenista 13 MOLIRENA 4 PP 1

Judicial branch
Judge selection and term of office: magistrates appointed by the president for staggered 10-year terms
Subordinate courts: appellate courts or Tribunal Superior; Labor Supreme Courts; Court of Audit; circuit courts or Tribunal Circuital (2 each in 9 provinces); municipal courts; electoral family maritime and adolescent courts

Political parties and leaders:

International organization participation: BCIE CAN (observer) CD CELAC CSN (observer) FAO G-77 IADB IAEA IBRD ICAO ICC (national committees) ICRM IDA IFAD IFC IFRCS ILO IMF IMO IMSO Interpol IOC IOM IPU ISO ITSO ITU ITUC (NGOs) LAES LAIA MIGA NAM OAS OPANAL OPCW Pacific Alliance (observer) PCA SICA UN UNASUR (observer) UNCTAD UNESCO UNIDO Union Latina UNWTO UPU WCO WFTU (NGOs) WHO WIPO WMO WTO

Diplomatic representation
In the us chancery: 2,862 McGill Terrace NW Washington DC 20,008
In the us telephone: [1] (202) 483-1407
In the us FAX: [1] (202) 483-8,413
In the us consulate general: Honolulu Houston Miami New Orleans New York Philadelphia San Diego Tampa Washington DC
From the us embassy: Edificio 783 Avenida Demetrio Basilio Lakas Panama Apartado Postal 0816-2,561 Zona 5 Panama City
From the us mailing address: American Embassy Panama Unit 0945 APO AA 34,002; American Embassy Panama 9,100 Panama City PL Washington DC 20,521-9,100
From the us telephone: [507] 317-5,000
From the us FAX: [507] 317-5,568

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; the blue and red colors are those of the main political parties (Conservatives and Liberals respectively) and the white denotes peace between them; the blue star stands for the civic virtues of purity and honesty the red star signifies authority and law

National symbols: harpy eagle

National anthem
Lyrics and music: Jeronimo DE LA OSSA/Santos A. JORGE

Economy overview: Panama's dollar-based economy rests primarily on a well-developed services sector that accounts for more than three-quarters of GDP. Services include operating the Panama Canal logistics banking the Colon Free Zone insurance container ports flagship registry and tourism. Economic growth will be bolstered by the Panama Canal expansion project that began in 2007 and is estimated to be completed by 2015 at a cost of $5.3 billion - about 10-15% of current GDP. The expansion project will more than double the Canal's capacity enabling it to accommodate ships that are too large to traverse the existing canal. The United States and China are the top users of the Canal. Panama is also constructing a metro system in Panama City valued at $1.2 billion and scheduled to be completed by 2014. Panama's booming transportation and logistics services sectors along with aggressive infrastructure development projects have lead the economy to continued high growth in 2012. Foreign investment at around 10% of GDP in both 2011 and 2012 has continued to be a source of growth. Strong economic performance has not translated into broadly shared prosperity as Panama has the second worst income distribution in Latin America. About one-fourth of the population lives in poverty; however from 2006 to 2012 poverty was reduced by 10 percentage points while unemployment dropped from 12% to 4.5% of the labor force in 2013. The US-Panama Trade Promotion Agreement was approved by Congress and signed into law in October 2011 and entered into force in October 2012. Panama also achieved removal from the Organization of Economic Development's gray-list of tax havens by signing various double taxation treaties with other nations.

Real gdp purchasing power parity:
Rank: 90

Real gdp growth rate:
Rank: 16

Real gdp per capita:
Rank: 81

Gdp composition by end use
Government consumption: 13.1%
Investment in fixed capital: 30.3%
Investment in inventories: 0.9%
Exports of goods and services: 81%
Imports of goods and services: -82.9%: (2013 est.)

Gdp composition by sector of origin
Industry: 17.9%
Services: 78.4% (2013 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: 9.2% (2013 est.)
Rank: 18

Labor force: 1.54 million
Rank: 128
By occupation industry: 18.6%
By occupation services: 64.4% (2009 est.)

Unemployment rate: 4.4% (2012 est.)
Rank: 40

Population below poverty line: 26% (2012 est.)

Household income or consumption by percentage share
Highest 10: 40.1% (2010 est.)

Distribution of family income gini index: 56.1 (2003)
Rank: 15

Budget
Expenditures: $11.38 billion (2013 est.)
Surplus or deficit: -2.6% of GDP (2013 est.)
Surplus or deficit rank: 110

Taxes and other revenues: 25.4% of GDP (2013 est.)
Rank: 121

Public debt: 39.6% of GDP (2012 est.)
Rank: 90

Fiscal year: calendar year

Inflation rate consumer prices: 5.7% (2012 est.)
Rank: 140

Commercial bank prime lending rate: 6.91% (31 December 2012 est.)
Rank: 122

Stock of narrow money: $7.659 billion (31 December 2012 est.)
Rank: 82

Stock of broad money: $25.73 billion (31 December 2011 est.)
Rank: 75

Stock of domestic credit: $32.27 billion (31 December 2012 est.)
Rank: 68

Market value of publicly traded shares:
Rank: 65

Current account balance: -$3.267 billion (2012 est.)
Rank: 168

Exports: $18.88 billion (2012 est.)
Rank: 73
Commodities: gold bananas shrimp sugar iron and steel waste pineapples watermelons
Partners: US 20.2% Canada 14.6% Costa Rica 6.6% Netherlands 5.9% Sweden 4.8% China 4.1% Italy 4% (2012)

Imports: $24.61 billion (2012 est.)
Rank: 70
Commodities: fuel products medicines vehicles iron and steel rods cellular phones
Partners: US 23.6% China 6.4% Costa Rica 4.6% Mexico 4.4% (2012)

Reserves of foreign exchange and gold: $2.466 billion (31 December 2012 est.)
Rank: 114

Debt external: $13.56 billion (31 December 2012 est.)
Rank: 88

Stock of direct foreign investment at home: $29.27 billion (31 December 2012 est.)
Rank: 62

Stock of direct foreign investment abroad: $3.11 billion (31 December 2012 est.)
Rank: 66

Exchange rates:

Electricity
Production: 7.257 billion kWh (2010 est.)
Production rank: 107
Consumption: 6.209 billion kWh (2010 est.)
Consumption rank: 104
Exports: 39 million kWh (2010 est.)
Exports rank: 84
Imports: 72 million kWh (2011 est.)
Imports rank: 97
Installed generating capacity: 1.976 million kW (2010 est.)
Installed generating capacity rank: 105
Generation sources fossil fuels: 52.6% of total installed capacity (2010 est.)
Generation sources fossil fuels rank: 148
Generation sources nuclear: 0% of total installed capacity (2010 est.)
Generation sources nuclear rank: 162
Generation sources hydroelectricity: 47.4% of total installed capacity (2010 est.)
Generation sources hydroelectricity rank: 45
Generation sources other renewable sources: 0% of total installed capacity (2010 est.)
Generation sources other renewable sources rank: 113

Petroleum
Petroleum total petroleum production: 0 bbl/day (2012 est.)
Petroleum total petroleum production rank: 206
Crude oil exports: 0 bbl/day (2010 est.)
Crude oil exports rank: 168
Crude oil imports: 0 bbl/day (2010 est.)
Crude oil imports rank: 109
Crude oil proven reserves: 0 bbl (1 January 2010 est.)
Crude oil proven reserves rank: 176

Refined petroleum
Products production: 0 bbl/day (2010 est.)
Products production rank: 185
Products consumption: 98,890 bbl/day (2011 est.)
Products consumption rank: 78
Products exports: 0 bbl/day (2010 est.)
Products exports rank: 208
Products imports: 111,100 bbl/day (2010 est.)
Products imports rank: 49

Natural gas
Production: 0 m³ (2011 est.)
Production rank: 181
Consumption: 0 m³ (2010 est.)
Consumption rank: 186
Exports: 0 m³ (2011 est.)
Exports rank: 165
Imports: 0 m³ (2011 est.)
Imports rank: 116
Proven reserves: 0 m³ (1 January 2013 est.)
Proven reserves rank: 183

Carbon dioxide emissions
From consumption of energy: 15.9 million Mt (2011 est.)

Telephones
Main lines in use: 640,000 (2012)
Main lines in use rank: 90
Mobile cellular: 6.77 million (2012)
Mobile cellular rank: 96

Telephone system
Domestic: mobile-cellular telephone subscribership has increased rapidly
International: country code - 507; landing point for the Americas Region Caribbean Ring System (ARCOS-1) the MAYA-1 and PAN-AM submarine cable systems that together provide links to the US and parts of the Caribbean Central America and South America; satellite earth stations - 2 Intelsat (Atlantic Ocean); connected to the Central American Microwave System (2011)

Broadcast media: multiple privately owned TV networks and a government-owned educational TV station; multi-channel cable and satellite TV subscription services are available; more than 100 commercial radio stations (2007)

Internet
Country code: .pa
Hosts: 11,022 (2012)
Hosts rank: 132
Users: 959,800 (2009)
Users rank: 104

Airports: 117 (2013)
Rank: 49
With paved runways over 3047 m: 1
With paved runways 2438 to 3047 m: 3
With paved runways 15-24 to 2437 m: 3
With paved runways 914 to 1523 m: 20
With paved runways under 914 m: 30 (2013)
With unpaved runways 15-24 to 2437 m: 1
With unpaved runways 914 to 1523 m: 8
With unpaved runways: 51 (2013)

Heliports: 3 (2013)

Pipelines: oil 128 km (2013)

Railways
Rank: 127
Standard gauge: 76 km 1.435-m gauge (2008)

Roadways
Rank: 122
Paved: 6,351 km
Unpaved: 8,786 km (2010)

Waterways: 800 km (includes the 82-km Panama Canal that is being widened) (2011)
Rank: 73

Merchant marine
Rank: 1
By type: barge carrier 1 bulk carrier 2,525 cargo 1115 carrier 27 chemical tanker 588 combination ore/oil 1 container 742 liquefied gas 205 passenger 42 passenger/cargo 51 petroleum tanker 545 refrigerated cargo 191 roll on/roll off 87 specialized tanker 3 vehicle carrier 290
Foreign owned: 5,162 (Albania 4 Argentina 5 Australia 4 Bahamas 6 Bangladesh 5 Belgium 1 Bermuda 27 Brazil 3 Bulgaria 6 Burma 3 Canada 6 Chile 14 China 534 Colombia 2 Croatia 2 Cuba 2 Cyprus 5 Denmark 41 Ecuador 3 Egypt 11 Finland 2 France 7 Gabon 1 Germany 24 Gibraltar 1 Greece 379 Hong Kong 144 India 24 Indonesia 10 Iran 5 Ireland 1 Israel 1 Italy 25 Japan 2,372 Jordan 11 Kuwait 12 Lebanon 2 Lithuania 3 Luxembourg 1 Malaysia 12 Maldives 2 Malta 2 Mexico 5 Monaco 11 Netherlands 6 Nigeria 6 Norway 81 Oman 10 Pakistan 3 Peru 9 Philippines 5 Portugal 10 Qatar 1 Romania 3 Russia 49 Saudi Arabia 11 Singapore 92 South Korea 373 Spain 30 Sweden 2 Switzerland 15 Syria 34 Taiwan 328 Tanzania 2 Thailand 6 Turkey 62 UAE 83 UK 37 Ukraine 8 US 90 Venezuela 13 Vietnam 43 Yemen 4)
Registered in other countries: 1 (Honduras 1) (2010)

Ports and terminals
Container port: Balboa (3,232,265) Colon (2,390,976) Manzanillo (2,391,066)

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