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 2016.

Geographic coordinates: 9 00 N 80 00 W

Map reference: Central America and the Caribbean

Area
Total: 75,420 km²
Land: 74,340 km²
Water: 1080 km²
Rank: 118
Comparative: slightly smaller than South Carolina

Land boundaries
Total: 687 km
Border countries: (2) Colombia 339 km; Costa Rica 348 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 with dissected upland plains; coastal plains with rolling hills

Elevation
Extremes lowest point: Pacific Ocean 0 m
Extremes highest point: Volcan Baru 3,475 m

Natural resources: copper mahogany forests shrimp hydropower

Land use
Agricultural land: 30.5%
Forest: 43.6%
Other: 25.9%

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: 3,657,024 (July 2015 est.)
Rank: 131
Growth rate: 1.32% (2015 est.)
Growth rate rank: 91
Below poverty line: 26% (2012 est.)

Nationality
Noun: Panamanian
Adjective: Panamanian

Ethnic groups: mestizo (mixed Amerindian and white) 65% Native American 12.3% (Ngabe 7.6% Kuna 2.4% Embera .9% Bugle .8% other .4% unspecified .2%) black or African descent 9.2% mulatto 6.8% white 6.7% (2010 est.)

Languages: Spanish (official) indigenous languages (including Ngabe Bugle Kuna Embera Wounaan Naso Tjerdi and Bri Bri)
Note: many Panamanians are bilingual

Religions: Roman Catholic 85% Protestant 15%

Demographic profile:

Age structure
0-14 years: 27.06%
15-24 years: 17.2%
25-54 years: 40.24%
55-64 years: 7.55%
65 years and over: 7.95% (2015 est.)

Dependency ratios
Total dependency ratio: 53.4%
Youth dependency ratio: 41.7%
Elderly dependency ratio: 11.7%
Potential support ratio: 8.5%

Median age
Total: 28.6 years
Male: 28.2 years
Female: 29 years

Population growth rate: 1.32% (2015 est.)
Rank: 91

Birth rate: 18.32 births/1000 population (2015 est.)
Rank: 98

Death rate: 4.81 deaths/1000 population (2015 est.)
Rank: 193

Net migration rate: -0.28 migrant(s)/1000 population (2015 est.)
Rank: 125

Urbanization
Urban population: 66.6% of total population
Rate of urbanization: 2.07% annual rate of change

Major urban areas
Population: PANAMA CITY (capital) 1.673 million (2015)

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 party to: Biodiversity Climate Change Climate Change-Kyoto Protocol Desertification Endangered Species Environmental Modification Hazardous Wastes Law of the Sea Marine Dumping Ozone Layer Protection Ship Pollution Tropical Timber 83 Tropical Timber 94 Wetlands Whaling
International agreements signed but not ratified: Marine Life Conservation

Sex ratio
At birth: 1.05 male/female
0-14 years: 1.04 male/female
15-24 years: 1.04 male/female
25-54 years: 1.03 male/female
55-64 years: 0.98 male/female
65 years and over: 0.85 male/female
Total population: 1.01 male/female

Infant mortality rate
Total: 10.41 deaths/1000 live births
Male: 11.16 deaths/1000 live births
Female: 9.63 deaths/1000 live births
Rank: 134

Life expectancy at birth
Total population: 78.47 years
Male: 75.67 years
Female: 81.39 years
Rank: 56

Total fertility rate: 2.35 children born/woman (2015 est.)
Rank: 86

Contraceptive prevalence rate: 52.2% (2009)

Drinking water source:

Physicians density: 1.65 physicians/1000 population (2013)

Hospital bed density: 2.2 beds/1000 population (2011)

Sanitation facility access:

Hivaids
Adult prevalence rate: 0.65% (2014 est.)
Adult prevalence rate rank: 58
People living with hivaids: 15,500 (2013 est.)
People living with hivaids rank: 88
Deaths: 600 (2014 est.)
Deaths rank: 81

Major infectious diseases
Degree of risk: intermediate
Food or waterborne diseases: bacterial diarrhea
Vectorborne disease: dengue fever

Obesity adult prevalence rate: 26.5% (2014)
Rank: 55

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

Education expenditures: 3.3% of GDP (2011)
Rank: 122

Literacy
Definition: age 15 and over can read and write
Total population: 95%
Male: 95.7%
Female: 94.4%

School life expectancy primary to tertiary education
Total: 13 years
Male: 13 years
Female: 14 years

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 City
Geographic coordinates: 8 58 N 79 32 W
Time difference: UTC-5

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

Executive branch
Chief of state: President Juan Carlos VARELA ; Vice President Isabel de SAINT MALO de Alvarado (since 1 July 2014); note - the president is both chief of state and head of government
Head of government: President Ricardo MARTINELLI Berrocal ; Vice President Juan Carlos VARELA Rodriguez (since 1 July 2009)
Cabinet: Cabinet appointed by the president
Electionsappointments: president and vice president directly elected on the same ballot by simple majority popular vote for a 5-year term ; election last held on 4 May 2014; next to be held in 2019)
Election results: Juan Carlos VARELA elected president; percent of vote - Juan Carlos VARELA 39.1% Jose Domingo ARIAS (CD) 31.4% Juan Carlos NAVARRO (PRD) 28.2% other 1.3%
Note: the ruling government coalition - formerly comprised of CD Panamenista Party MOLIRENA (Nationalist Republican Liberal Movement) and UP (Patriotic Union Party) - split in August 2011 when President MARTINELLI relieved Vice President VARELA from his position as Foreign Minister prompting the Panamenistas to pull out of the coalition; UP merged with CD and CD and the Panamenista Party ran separate candidates for the 2014 presidency

Legislative branch
Description: unicameral National Assembly or Asamblea Nacional
Elections: last held on 4 May 2014
Election results: percent of vote by party - NA; seats by party - PRD 26 CD 25 Panamenista 16 MOLIRENA 2 PP 1 independent 1; note - only 57 deputies were officially installed because fourteen runners-up challenged the election

Judicial branch
Highest court: Supreme Court of Justice or Corte Suprema de Justicia
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 ; municipal courts; electoral family maritime and adolescent courts

Political parties and leaders:

International organization participation: BCIE CAN (observer) CD CELAC FAO G-77 IADB IAEA IBRD ICAO ICC (national committees) ICCt 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 chief of mission: Ambassador Emanuel Arturo GONZALEZ-REVILLA Lince
In the us chancery: 2,862 McGill Terrace NW Washington DC 20,007
In the us telephone: [1] 483-1407
In the us FAX: [1] 483-8,413
In the us consulate general: Honolulu Houston Miami New Orleans New York Philadelphia San Diego Tampa Washington DC
From the us chief of mission: Ambassador Jonathan D. FARRAR
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 colors: blue white red

National anthem
Name: 'Himno Istmeno'
Lyrics and music: Jeronimo DE LA OSSA/Santos A. JORGE
Note: adopted 1925

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 Trade 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 2016 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 completed a metro system in Panama City valued at $1.2 billion in 2014. Panama's transportation and logistics services sectors along with infrastructure development projects have boosted economic growth; however public debt surpassed $17 billion in 2014 because of excessive government spending and public works projects. Foreign direct investment 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. The US-Panama Trade Promotion Agreement was approved by Congress and signed into law in October 2011 and entered into force in October 2012.

Real gdp purchasing power parity:
Note: data are in 2014 US dollars
Rank: 91

Real gdp growth rate:
Rank: 24

Real gdp per capita:
Note: data are in 2014 US dollars
Rank: 82

Gross national saving:
Rank: 87

Gdp composition by end use
Household consumption: 52.9%
Government consumption: 11.3%
Investment in fixed capital: 28.7%
Investment in inventories: 5.8%
Exports of goods and services: 75.3%
Imports of goods and services: -74%: (2014 est.)

Gdp composition by sector of origin
Agriculture: 2.9%
Industry: 14.1%
Services: 83%

Agriculture products: bananas rice corn coffee sugarcane vegetables; livestock; shrimp

Industries: construction brewing cement and other construction materials sugar milling

Industrial production growth rate: 8.2% (2014 est.)
Rank: 21

Labor force: 1.563 million
Note: shortage of skilled labor but an oversupply of unskilled labor
Rank: 128
By occupation agriculture: 17%
By occupation industry: 18.6%
By occupation services: 64.4%

Unemployment rate:
Rank: 44

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

Household income or consumption by percentage share
Lowest 10: 1.1%
Highest 10: 40.1%

Distribution of family income gini index:
Rank: 15

Budget
Revenues: $10.86 billion
Expenditures: $12.69 billion
Surplus or deficit: -4.1% of GDP (2014 est.)
Surplus or deficit rank: 143

Taxes and other revenues: 24.3% of GDP (2014 est.)
Rank: 124

Public debt:
Rank: 104

Fiscal year: calendar year

Inflation rate consumer prices:
Rank: 118

Commercial bank prime lending rate:
Rank: 127

Stock of narrow money:
Rank: 91

Stock of broad money:
Rank: 77

Stock of domestic credit:
Rank: 67

Market value of publicly traded shares:
Rank: 70

Current account balance:
Rank: 164

Exports:
Note: includes the Colon Free Zone
Rank: 76
Commodities: fruit and nuts fish iron and steel waste wood
Partners: US 19.8% Germany 10.7% China 8.5% Costa Rica 6.7% Netherlands 5.2% Vietnam 4.3% (2014)

Imports:
Note: includes the Colon Free Zone
Rank: 73
Commodities: fuels machinery vehicles iron and steel rods pharmaceuticals
Partners: US 25.1% China 8.1% Mexico 4.2% (2014)

Reserves of foreign exchange and gold:
Rank: 109

Debt external:
Rank: 94

Stock of direct foreign investment at home:
Rank: 59

Stock of direct foreign investment abroad:
Rank: 60

Exchange rates:

Electricity
Production: 7.642 billion kWh (2011 est.)
Production rank: 102
Consumption: 6.626 billion kWh (2011 est.)
Consumption rank: 104
Exports: 59 million kWh (2012 est.)
Exports rank: 86
Imports: 19 million kWh (2012 est.)
Imports rank: 109
Installed generating capacity: 2.391 million kW (2011 est.)
Installed generating capacity rank: 100
Generation sources fossil fuels: 43.5% of total installed capacity (2011 est.)
Generation sources fossil fuels rank: 163
Generation sources nuclear: 0% of total installed capacity (2011 est.)
Generation sources nuclear rank: 163
Generation sources hydroelectricity: 56.5% of total installed capacity (2011 est.)
Generation sources hydroelectricity rank: 39
Generation sources other renewable sources: 0% of total installed capacity (2011 est.)
Generation sources other renewable sources rank: 115

Petroleum
Petroleum total petroleum production: 0 bbl/day (2013 est.)
Petroleum total petroleum production rank: 208
Crude oil exports: 0 bbl/day (2010 est.)
Crude oil exports rank: 169
Crude oil imports: 0 bbl/day (2010 est.)
Crude oil imports rank: 110
Crude oil proven reserves: 0 bbl (1 January 2010 est.)
Crude oil proven reserves rank: 177

Refined petroleum
Products production: 0 bbl/day (2010 est.)
Products production rank: 185
Products consumption: 101,400 bbl/day (2013 est.)
Products consumption rank: 77
Products exports: 0 bbl/day (2010 est.)
Products exports rank: 208
Products imports: 111,100 bbl/day (2010 est.)
Products imports rank: 47

Natural gas
Production: 0 m³ (2012 est.)
Production rank: 181
Consumption: 0 m³ (2012 est.)
Consumption rank: 186
Exports: 0 m³ (2012 est.)
Exports rank: 162
Imports: 0 m³ (2012 est.)
Imports rank: 118
Proven reserves: 0 m³ (1 January 2014 est.)
Proven reserves rank: 183

Carbon dioxide emissions
From consumption of energy: 16.23 million Mt (2012 est.)
From consumption of energy rank: 90

Telephones
Fixed lines total subscriptions: 590,000
Fixed lines subscriptions per 100 inhabitants: 16
Fixed lines rank: 92
Mobile cellular total: 6.2 million
Mobile cellular subscriptions per 100 inhabitants: 172
Mobile cellular rank: 110

Telephone system
General assessment: domestic and international facilities well-developed
Domestic: mobile-cellular telephone subscribership has increased rapidly
International: country code - 507; landing point for the Americas Region Caribbean Ring System 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
Users total: 1.7 million
Users percent of population: 48.4%
Users rank: 105

Airports: 117 (2013)
Rank: 49
With paved runways total: 57
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
With unpaved runways total: 60
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
Total: 77 km
Standard gauge: 77 km 1.435-m gauge
Rank: 129

Roadways
Total: 15,137 km
Paved: 6,351 km
Unpaved: 8,786 km
Rank: 122

Waterways: 800 km (includes the 82-km Panama Canal that is being widened) (2011)
Rank: 72

Merchant marine
Total: 6,413
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: 5,151
Registered in other countries: 1 (2010)
Rank: 1

Ports and terminals
Major seaport: Balboa Colon Cristobal
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

Refugees and internally displaced persons
Refugees: 15,551 (Colombia) (2014)

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