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Panama

Panama

Capital:Panama City
Population:3.4M
Currency:Panamanian Balboa (PAB) and US Dollar (USD)
Language:Spanish (official), English 14%
Panama Canal

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Quick Look Factsheet

A multi-page overview of Panama.

Panama Factsheet

Customs and Culture

About the People

Panamanians consider their family to be important, it is their support and their responsibility and the ultimate recipient of their loyalty. Along with loyalty to family members, Panamanians value their friendships. Nationalism is strong in Panama. The people of Panama want to solve their problems They look to the future with excitement. Ethnicity is an important social distinction in Panama, yet the Panamanian subcultures have merged to the point that individuals are often difficult to classify as belonging to a particular ethnic group.

The Panamanian social system began in Spanish colonial times and has continued until today. Most citizens, even interior campesinos, are well-informed on topics relating to national and international politics. Panamanians are also aware of their country’s association with the United States. Many resent the relationship as unequal. Panamanians appreciate their Spanish heritage and, to a lesser extent, their indigenous roots. Panama’s social system has three main tiers: the elite, the middle class the lower class. Class structure divides citizens based on wealth, occupation, education, family background, culture, and race. Panamanians are an eclectic group of immigrants from many countries and they readily accept other groups, cultures, and combine them with their own. The Panamanian lifestyle shows Caribbean rather than South American influence.

Cultural Attributes

Panamanians consider their family to be important, it is their support and their responsibility and the ultimate recipient of their loyalty. Along with loyalty to family members, Panamanians value their friendships. Nationalism is strong in Panama. The people of Panama want to solve their problems They look to the future with excitement. Ethnicity is an important social distinction in Panama, yet the Panamanian subcultures have merged to the point that individuals are often difficult to classify as belonging to a particular ethnic group.

The Panamanian social system began in Spanish colonial times and has continued until today. Most citizens, even interior campesinos, are well-informed on topics relating to national and international politics. Panamanians are also aware of their association with the United States. Many resent the relationship as unequal. Panamanians appreciate their Spanish heritage and, to a lesser extent, their indigenous roots.

Panama's social system has three main tiers: the elite, the middle class the lower class. Class structure divides citizens based on wealth, occupation, education, family background, culture, and race. Panamanians are an eclectic group of immigrants from many countries and they readily accept other groups, cultures, and combine them with their own. The Panamanian lifestyle demonstrates a Caribbean rather than South American influence.

Panama Canal

Bridge Between Two Worlds

Greetings, Gestures & Visiting

While speaking Panamanians often stop to give the listener a change to agree or disagree with what they are saying. Panamanians are polite people with considerate greeting and formalities in their everyday life. A business person always makes small talk with a colleague or client before discussing business. Panamanians are offended if anyone initiates a business conversation before spending time to learn about the other party on a personal level.

Panamanians of either sex may greet each other by shaking hands. Women friends typically kiss each other on one cheek when greeting and departing. Men and women sometimes kiss each other on the cheek. Two men always shake hands. Panamanians are very gracious and polite. They frequently say Please (por favor), thank you (gracas) and your welcome (de nada). Before joining a group of people who are eating or conversing a newcomer will ask permission to join the group by saying con permisoâ(kohn-pair-MEE-soh) the group responds by saying andele (AHN-day-lay) which means "go ahead". One of the major taboos is a discussion of personal possessions.

Another conversation they do not like is the discussion of the building of the canal and the U.S. intervention. Generally the do not like to discuss local politics and race in a social setting. The favorite topics of conversation are family, common friends, hobbies, interests and sports. Shaking hands when meeting someone shows good manners, and can be done in two ways. Either the American Handshake or palm to palm with the thumb facing toward the person. When Panamanians want another person to approach them they will raise one of their hands with their palm facing the other person. Panamanians have two surnames after their first name. The first is the fathers name the second is the mothers. If a child is named Jaunita and the father name is Chaves and the mother is Sanchetz the child would be Junita Chaves Sanchetz.

Sending (exchanging) gifts is common among friends in the interior, but gifts include items such as food or seedlings, not expensive items. The custom is a way of sharing one's good fortune with friends. It is not commonly practiced in the cities. Social gatherings in Panama have certain customs that guests follow. For instance, guests at large social gatherings introduce themselves to other guests and do not expect the host or hostess to introduce them.

Guests at these parties do not arrive on time even if the party begins at 10 PM. Panamanians consider arriving two hours late to be acceptable. At a smaller party, however a guest should not arrive later than a half-hour. For all parties host or hostess' appreciate a small gift from each guest. A father always sits at the head of the table. If the family has a guest at a meal the guest of honor sits at the other end of the table. Good manners dictate that guest eat everything on their plate. They signal that they have finished a meal by placing their knife and fork vertically and parallel on their plate.

Many Panamanians wear the same style of clothes as North Americans. Kuna women make colorful fabrics called molas. Panamanians are fairly conservative and formal in their dress. Within the city businessmen often dress less formally. For instance men often wear a cotton shirt called a guayabera("gay-ah-BAY-rah") which is a loose-fitting short sleeved cotton shirt that is not tucked into the pants. In some professions, such as banking and law, men and women wear lightweight suits. Panamanians frown on wearing shorts in public, no matter how hot is is. Men many occasionally wear shorts, but society considers in inappropriate for women to wear shorts or pants in public.

Although Panamanians grant leniency to tourists who wear shorts in the city and countryside, they prefer that foreigners abide by their somewhat stringent dress code. Traditional clothing for women is the pollera (poh-YEH-rah), a long, full dress of white cotton. Brightly colored embroidery accents the beautiful dress, and the women wear it for national celebrations, carnivals, and special occasions.

The peineta(peh-ee-NEH-tah) is the women's headpiece with the pollera. The peineta consists of veils or elaborate, large combs with dangling ornaments. The traditional clothing for men is the montuno (nohn-TOO-noh) The montuno is a white cotton embroidered shirt and short pants. Men often wear a straw hat called a pintado(pin-TAH-doh). This hat has a distinctive curled up brim and black patches on it. With this outfit men wear sandals.

Diet

Most Panamanians eat a great deal of corn, rice and beans. They also eat tortillas, which are flat breads made from cornmeal. These are filled with meat, beans, and cheese. Black beans are popular in Panama. A popular Panamanian dish is ceviche This is made of raw fish or shellfish that has been soaked in lime or lemon juice, olive oil and hot spices. Panamanians like their food spicy. Tamales are made of corn dough. They are filled, wrapped in a banana leaf and steamed. In Panama, it is commonly said that one hasn’t eaten if one hasn’t had rice. Rice is served with nearly every meal, along with a source of protein (eggs, chicken, sardines, meat, fish, or beans). Corn and plantains are also staples. Fish is inexpensive and often made into a soup. People usually eat vegetables as part of the main dish or in a salad. They often eat fruit as a snack. Chicha, a popular drink, is made from fresh fruit, water, and sugar. Coffee is usually part of breakfast. Common dishes in the interior include sancocho (chicken soup), guacho (rice soup), bollo (corn mush that has been boiled in the husk), corn tortillas, and guisado (stewed meat with tomatoes and spices). Arroz con pollo (rice and chicken) is eaten on special occasions. Urban people eat traditional foods as well as a wider variety of international foods. People eat rice with almost every meal. Beans and corn are also common foods. Guacho (GWA-cho) is rice soup with beans. Bollo (BOH-yo) is a boiled corn dish. Tortillas (tor_TEE-yas) also are popular. People make these flat breads from corn or wheat. Sancocho (sahn-KHO-cho) is Panama’s national dish. People make this stew with spicy vegetables and chicken. Panamanians eat a lot of meat and seafood. Guisado (kwee-SA-doh) is a stew with meat and tomatoes. Panamanians sometimes add fish to soup. Panamanian families usually eat together, they have a big breakfast. The main meal with rice, meat and vegetables is in the middle of the day. Families often eat a small meal in the evening.

Because Panama is an international crossroads, a variety of cuisines are available. French, Spanish and American food is available in all restaurants and hotels in Panama City. Native cooking is similar to Creole Cuisine, Hot and spicy. Dishes include ceviche (fish marinated in lime juice, onions and peppers) Patacones de plátano (fried plantain) sancocho (Panamanian stew with chicken, meat and vegetables) tamales (seasoned pie wrapped in banana leaves or corn husks) and carimanolas and empanadas (turnovers filled with meat, chicken or cheese) Panamanians have arroz (ah-ROHS) or rice with most of their meals. The eat the rice either plain or add meat and vegetables to eat. They often eat both potatoes and rice at one meal. Panama has an abundance of fish and seafood. Most Panamanians meals also include corn tortillas. Yucca is a commonly served vegetable.

Panamanians love to eat out. And Panama City’s residents have a plethora of restaurants to choose from. In addition to restaurants a panadería sells take-out bread and rolls, a pastelería(pas-tell-ay-REE-ah) offers pastries and a cantina(kan-TEE-nah) is a drinking establishment. Panamanians tip there servers about 15% of the bill. Panamanins eat three hearty meals per day. El desayuno(day-sigh-noh) breakfast, el almuerzo(ahl-MWER-sho)Lunch and la cena(“SAY-nah) dinner.

The typical breakfast is thick deep-fried tortillas, with a white cheese, sautéed liver, garlic and onions and fresh rools or bread. A typical lunch begins with soup followed by chick or steak. Served with a mixture of cooked rice and red kidney beans or pigeon peas. Salad is eaten with the main course. Dinner consists of meat covered with a spicy sause, rice and a salad. Dessert is usually fruit. Occasionally they indulge in cake, pie or cheesecake. After dinner they enjoy a cup of coffee. The most popular Panamanian dessert is sopa borracha (SOH-pah-bohr-RAH-chah) which is pound cake topped with syrup, rum or brandy, cinnamon raisins and cloves.

Children attend church services

Family

Family Life is essential to Panamanians, especially those who live in rural areas.  Many relatives may live together or close to one another. They especially like to celebrate holidays together. Many family groups are breaking up as many Panamanians are moving to cities to look for work. In the cities, wealthy people may live in apartments. Poor people may live nearby in poor sections. Panamanians are loyal to their family and have historically viewed their family ties as a defense against an uncertain and hostile world. Panamanians are often more loyal to their parents and siblings than their spouses. In many Panamanian families, particularly those in rural areas, three generations live under one roof. Family members steadfastly come to each other's aid if needed and support each other through life.

The cunas live on the San Blas Islands or in the Darion Region. Men dominate Cuna society and the family. Â The most senior man in a hut is the head of the household. When a daughter marries, her husband may come to live with her family, and the husband is subordinate to the father. The husband often tries to establish his household after a few years. The women perform the household duties and sew for the family. In their spare time, they make molas, often at night, with the help of a kerosene lamp.

The women inherit the land that they live on from their fathers. Thus, parents hope for female children. Most girls begin group dating around age fourteen. Compared with girls from other Latin American countries, urban Panamanian girls experience great freedom. However, girls in the interior are often not allowed to date until much later and are subject to parental restrictions.   The majority of Panamanian men and women choose their spouses. Couples in the middle and lower classes often decide to marry and have children together but do not participate in a formal marriage ceremony until years later. Most Panamanians desire children and celebrate their birth.  When a couple has a child, they take great care in choosing godparents. Most Panamanians believe that the godparents play an integral role in the child's life.

In rural society, men and women have traditional roles. The men work outside the home, farming and raising crops or animals, while the women stay at home and care for the children. In most rural areas, female education is a low priority for peasant families.

Recreation

Futball (Soccer) has become the national sport. Swimming and diving are also popular. Many people like to go deep sea fishing and snorkeling as well. Panamanians enjoy horse racing, volleyball, cycling, and hiking. People in panama also like baseball, softball and basketball. Panama has more than 940 species of birds, and because of this, bird watching is popular.

Because there is frequently nice weather in Panama, outdoor activities such as sailing are popular. Baseball is the most popular sport in Panama. Panamanians learned how to play baseball from Americans who worked on the canal. People like to snorkel and scuba dive. They also enjoy basketball, soccer, boxing, cycling and tennis. The mountains of Panama provide a haven for fitness enthusiasts.

Student Life

Children must go to school from ages 6 to 15. Many schools are public but some are run by the Catholic Church. In many rural areas there are not schools. Many children in rural areas have to help their families work on their farms. A student must go to school for 12 years in order to attend a university. People in Panama care about education The government spends a lot of money to improve education. Elementary school is free. The school year last from April to December. Students learn reading, writing, math, history and art. A law says that children must complete the 6th grade. Some families pay for children to go to private middle and high school. Many students attend colleges in Panama City. Middle School and high school are called secondary education in Panama. Students study many subjects in the first three years. They learn math, science, art and history. The second part of secondary education also lasts about three years. Students study only one subject in the second part. They choose a subject that will help them get a job after they graduate. The education system in panama is separated into three levels: Primary school (six years) secondary school (six years) and university or higher education. The first six years of primary education are required for all children. A high percentage goes on to enroll in secondary school. Panama has one of the highest literacy rates in Central America.

Holidays

  • Independence Day

    11/3

    Independence Day

  • Christmas

    12/25

    Christmas

    Christmas dinner consists of seafood, rice with beans, arroz con pollo (chicken with rice, saffron, and vegetables), arroz con piña (rice with pineapple) and rom ponche (rum punch)

    Instead of writing letters to Santa Claus children address them to Baby Jesus care of St Peter in Heaven. Gifts are placed either under the Christmas tree or under the children’s bed.

Dates of Interest

  • November

    While Semana Santa is celebrated in many countries, Panama has its own unique customs and traditions during this time, including religious processions, reenactments of the Passion of Christ, and special church services.

How do people greet each other in Panama?

Panamanians are gracious and polite, greeting with handshakes; two men always shake hands, women friends kiss on one cheek, and men and women sometimes kiss on the cheek. Small talk to learn about someone personally comes before any business discussion.

Do

  • Shake hands when meeting (American handshake or palm-to-palm with thumb facing the person)
  • Make personal small talk before discussing business
  • Say por favor (please), gracias (thank you), and de nada (you're welcome)
  • Ask permission to join a group by saying con permiso

Don’t

  • Don't start a business conversation before getting to know the other party personally
  • Don't discuss personal possessions
  • Don't bring up the building of the canal or U.S. intervention
  • Don't discuss local politics or race in social settings

Good to know

  • Panamanians have two surnames: the father's first, then the mother's
  • Favorite conversation topics are family, mutual friends, hobbies, interests, and sports
  • To beckon someone, raise a hand with the palm facing them

What are dining customs like in Panama?

Panamanians eat three hearty meals a day and serve rice with nearly every meal; the national dish is sancocho, a spicy chicken-and-vegetable stew. Families usually eat together with a big breakfast and the main meal at midday.

Do

  • Eat everything on your plate as a sign of good manners
  • Signal you've finished by placing your knife and fork vertically and parallel on the plate
  • Try ceviche, tamales, sancocho, arroz con pollo, and sopa borracha

Good to know

  • The father sits at the head of the table; a guest of honor sits at the opposite end
  • Tip servers about 15% of the bill
  • Chicha (fresh fruit, water, sugar) is a popular drink, and coffee is usual at breakfast
  • A panadería sells bread, a pastelería sells pastries, and a cantina is a drinking establishment

What social etiquette should I know when visiting?

Guests follow specific customs at social gatherings, including introducing themselves and bringing a small gift for the host. Punctuality expectations vary by the size of the event.

Do

  • Introduce yourself to other guests at large gatherings
  • Bring a small gift for the host or hostess at any party
  • Arrive within a half-hour at a small party

Don’t

  • Don't arrive later than a half-hour at a smaller party

Good to know

  • Arriving up to two hours late is acceptable at large gatherings
  • In the interior, friends exchange modest gifts like food or seedlings, not expensive items

How should I dress in Panama?

Panamanians are fairly conservative and formal in dress, and they frown on wearing shorts in public regardless of the heat. Many wear North American styles, though men may wear a loose guayabera shirt.

Do

  • Dress conservatively; wear lightweight suits in professions like banking and law
  • Abide by the local dress code even as a foreigner

Don’t

  • Don't wear shorts in public, especially women, for whom shorts or pants in public are considered inappropriate

Good to know

  • Traditional women's dress is the pollera with a peineta headpiece; men's is the montuno with a pintado straw hat and sandals
  • Tourists are granted some leniency for wearing shorts, but locals prefer you follow their dress code

What is family life like in Panama?

Family is essential to Panamanians and receives their ultimate loyalty, often with three generations living under one roof, especially in rural areas. Members support each other through life and love celebrating holidays together.

Good to know

  • Panamanians are often more loyal to parents and siblings than to spouses
  • Godparents are chosen with great care and play an integral role in a child's life
  • In Cuna society men dominate; women inherit land from their fathers and make molas
  • Urban girls have more freedom than those in the interior, where dating is more restricted

What do people do for fun in Panama?

Baseball is the most popular sport, learned from Americans who worked on the canal, and soccer is the national sport. The pleasant weather and rich wildlife make outdoor activities popular.

Good to know

  • Popular activities include swimming, diving, deep-sea fishing, snorkeling, and scuba diving
  • Other sports include volleyball, cycling, hiking, basketball, boxing, tennis, softball, and horse racing
  • With over 940 bird species, bird watching is popular
  • Sailing and mountain fitness activities are also enjoyed

Last updated: 2026-07-12 · Sources: CountryReports

Photos of Panama

Travel and Tourism

Travel Alert Status
Level 2: Exercise Increased Caution
Currency
balboa (PAB); US dollar (USD)
Time Difference
UTC-5 (same time as Washington, DC, during Standard Time)
Climate
tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May)
Airports
103
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Recipes

History

Historical Eras

  1. Pre-Columbian Era

    11000 BCE – 1501

    Panama's isthmus was inhabited for millennia by diverse indigenous peoples, including the Cuna, Ngäbe, and Guna, who developed sophisticated cultures, trade networks, and goldworking traditions. These societies flourished as a natural land bridge connecting North and South America before European contact dramatically disrupted their populations through disease, conquest, and enslavement.

  2. Spanish Colonial Era

    1501 – 1821

    Following Rodrigo de Bastidas's arrival in 1501 and Balboa's famous crossing to the Pacific in 1513, Panama became the crossroads of the Spanish Empire — the third-wealthiest colony in the New World. Gold and silver from Peru flowed through Panama City toward Spain, attracting buccaneers such as Henry Morgan, who sacked and burned Panama City in 1671. By the 18th century the colony had declined due to piracy, competing trade routes, and imperial neglect.

  3. Colombian Department

    1821 – 1903

    Panama declared independence from Spain in 1821 and voluntarily joined Gran Colombia, later remaining part of Colombia as a department. Throughout the 19th century, American interest surged with the California gold rush, prompting the construction of a trans-isthmian railroad completed in 1855. A failed French canal venture under Ferdinand de Lesseps (1880–1889) and persistent Panamanian separatist sentiment set the stage for a decisive break from Bogotá.

  4. Canal Zone Republic

    1903 – 1968

    With active U.S. naval support, Panama seceded from Colombia in 1903 and immediately signed the Hay–Bunau-Varilla Treaty, granting the United States perpetual sovereignty over the Canal Zone. The U.S. Army Corps of Engineers completed the 50-mile canal in 1914, transforming Panama's economy but making the republic a virtual American protectorate. Growing nationalist resentment culminated in deadly riots in January 1964, when Panamanian students attempted to raise their flag in the Canal Zone.

  5. Military Dictatorship

    1968 – 1989

    General Omar Torrijos seized power in a 1968 coup, establishing military dominance over Panamanian politics and successfully negotiating the 1977 Carter–Torrijos Treaties, which set a timetable for full Panamanian control of the canal by 1999. After Torrijos's death in 1981, General Manuel Noriega rose to control the Panama Defense Force and effectively the state, but his regime became increasingly authoritarian and linked to drug trafficking. A U.S. military invasion in December 1989, Operation Just Cause, deposed Noriega and restored civilian government.

  6. Democratic Modern Era

    1989 – present

    Following Noriega's removal, Panama restored democratic governance and on 31 December 1999 assumed full sovereignty over the Panama Canal under President Mireya Moscoso, fulfilling the promise of the 1977 treaties. The canal has been expanded and modernized, most notably with a $5.25 billion third set of locks inaugurated in 2016, cementing Panama's role as a global maritime hub. The country has maintained civilian rule and sustained strong economic growth, though inequality and corruption remain persistent challenges.

Overview

Cuna Indian mola design of a Panamanian coin featuring Spanish explorer Vasco Nú ñez de Balboa THE HISTORY OF the Panamanian isthmus, since Spaniards first landed on its shores in 1501, is a tale of treasure, treasure seekers, and peoples exploited; of clashes among empires, nations, and cultures; of adventurers and builders; of magnificent dreams fulfilled and simple needs unmet. In the wake of Vasco Nuñez de Balboa’s torturous trek from the Atlantic to the Pacific in 1513, conquistadors seeking gold in Peru and beyond crossed the seas and recrossed with their treasures bound for Spain. The indigenous peoples who survived the diseases, massacres, and enslavement of the conquest ultimately fled into the forest or across to the San Blas Islands. Indian slaves were soon replaced by Africans. A century before the English settled Massachusetts Bay, Panama was the crossroads and marketplace of the great Spanish Empire, the third richest colony of the New World. In the seventeenth century, however, the thriving colony fell prey to buccaneers of the growing English Empire, and Panama entered a period of decline and neglect that lasted until gold was discovered in California. The geopolitical significance of Panama has been recognized since the early 1500s, when the Spanish monarchs considered digging a canal across the isthmus. United States interest, intensified in the 1850s by the California gold rush, resulted in the construction of a trans-isthmian railroad. In 1879 a French company under the direction of Ferdinand de Lesseps, builder of the Suez Canal, began constructing a canal in Panama. The project fell victim to disease, faulty design, and ultimately bankruptcy and was abandoned in 1889. By the turn of the twentieth century, the United States had become convinced that a canal should be built to link the two oceans. In addition to the geographic advantages of the isthmus, President Theodore Roosevelt was attracted by the separatist tendencies of Panama, then a department of Colombia. When Panama rebelled against Colombia in 1903, Roosevelt deployed United States naval vessels to discourage the Colombian forces and proudly claimed the role of midwife at the birth of the Republic of Panama. Since its completion in 1914, the Panama Canal has been Panama’s economic base, and the United States presence has been the republic’s major source of frustration. The provisions of the treaty concluded in 1903 between John Hay and Philippe BunauVarilla (the Hay-Bunau-Varilla Treaty) granted the Canal Zone "in perpetuity" to the United States and made Panama a virtual protectorate of the United States. Relations with the United States in general, and the status of the Canal Zone in particular, long remained the overriding concerns of the formulators of Panama’s foreign policy and strongly influenced domestic politics and international relations. Despite the negotiation of treaty amendments in 1936 and 1955, limiting the freedom of the United States to intervene in Panama’s internal affairs, various problems between the two countries continued to generate resentment among Panamanians. Aside from the larger issue of jurisdiction over the zone--which split the country into two parts--Panamanians complained that they did not receive their fair share of the receipts from the canal, that commissaries in the zone had damaged their commercial interests, that Panamanian workers in the zone were discriminated against in economic and social matters, and that the large-scale presence of the United States military in the zone and in bases outside the zone cast a long shadow over national sovereignty. After serious rioting in 1964 that indicated the intensity of nationalistic aspirations concerning the status of the canal, the United States agreed to enter into negotiations for a new treaty. Meanwhile, studies relating to the construction of a new canal were undertaken. In 1971 after a four-year interlude, negotiations were renewed. In 1977 two new treaties were signed, one providing for Panamanian assumption of control over the canal in the year 2000 and the other providing for a permanent joint guarantee of the canal’s neutrality. The focal point of consensus in Panamanian political life, cutting across both social and partisan divides, has been nationalism. Nationalistic sentiments, directed primarily against the highly visible and dominant presence of the United States, have been catered to in varying degrees by all who have held positions of leadership or have sought popular support. Public demonstrations and riots, as occurred in 1927, 1947, 1959, and 1964, have been effective in influencing policy, especially in relation to the country’s stance vis-à-vis the United States.

Timeline of Key Events

  1. 1501

    Rodrigo de Bastidas, sailing westward from Venezuela, arrives in search of gold.

    Rodrigo de Bastidas, sailing westward from Venezuela, arrives in search of gold.

  2. 1502

    Christopher Columbus establishes a short-lived settlement on the isthmus.

    Christopher Columbus establishes a short-lived settlement on the isthmus.

  3. 1510

    The Spanish establish Santa María la Antigua del Darien.

    The Spanish establish Santa María la Antigua del Darien, the first mainland settlement in the Americas.

  4. 1513

    Vasco Núnez de Balboa marches from the Atlantic to the Pacific.

    Vasco Núnez de Balboa marches from the Atlantic to the Pacific, proving that crossing the isthmus is the shortest route between the oceans.

  5. 1821

    Panama declares independence from Spain.

    Panama declares independence from Spain.

  6. 1846

    Panama signs treaty with US allowing it to build a railway across the isthmus.

    Panama signs treaty with US allowing it to build a railway across the isthmus.

  7. 1855

    Panamanian workers completed a railroad across the isthmus.

    Panamanian workers completed a railroad across the isthmus.

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Interesting Facts

  • The idea of building a canal on the isthmus to connect the Atlantic and Pacific Oceans dates back to the 1840s. France, Britain and the USA were all interested in a canal linking the oceans.

  • Ferdinand de Lesseps, a Frenchman who built the Suez Canal, made an unsuccessful attempt to construct a canal linking the Atlantic and Pacific Oceans (1879-1889).

  • Birthday traditions iclude piñatas and large parties. The piñata is the most important item. They are usually made to resemble a character to correspond with a theme. It is filled with candy and confetti and is either hit with a stick or there are ribbons on it to pull. When the cake is served, the happy birthday song is often performed in two languages, Spanish and English. The cake is served with ice cream. The extended family is invited and sometimes up to 100 children are invited.

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Geography and Environment

The contrast between life in Panama City and in the rest of the country is striking. The city itself has changed enormously in the last 10 years. A modern banking center, several huge new shopping centers, and scores of high-rise office and apartment buildings have re-shaped the skyline. But the history and tradition of the past can be found quickly in Casco Viejo (the old center) where the cathedral forms the center of what was once the "downtown" area. The ruins of Panama Viejo (Old Panama), once the object of attack from the pirates of the Caribbean, are a short distance from the modern city center. The countryside, by contrast, continues to resemble in many ways what it was 10 years ago. Small towns and Indian villages, many nestled in mountain valleys, have seen some changes but everything is "low rise" and "laid back." Rural Panama is the heartland of Panamanian native cultural life, with the typical music and dances of yesteryear still popular today. Here is where city dwellers flock for relief on weekends and over holidays. Panama, the country — often-called "The Bridge between Two Worlds" — is a crossroads of world culture and international trade. Panama — the city — resembles much larger metropolitan centers in that it is a melting pot for nationality and culture. Panama, the people, is a cultural "Mezcla," (mix) or "Mosaico," (mosaic) of many races and cultures under the lively and energized daily rhythm of Latin society. Panama — the canal — functions in the lush, tropical green forests entirely with fresh water. Panama, the word, is a native term with the interchangeable meaning for "many fish," "many trees," or "many butterflies." Wedged between North and South America, Panama appears pushed, squeezed, twisted, and stretched by the two continents dangling on either end. Panama’s snake-like "S" shape can disorient a new arrival. North and South "become" East and West. One imagines that in Panama City the sun rises in the West over the Pacific and sets in the East over the Atlantic. The Panama Canal lets ships, some 40 a day, sail West and East but they must go North and South to do so. South America lies to the East and to get to North America you head West — to where the sun rises. The country largely avoids the Pacific rim’s earthquakes and its "ring of fire,"and escapes the Caribbean’s devastating tropical storms and hurricanes. Geography gives Panama one of the world’s most amazing collections of flora and fauna.
Terrain
interior mostly steep, rugged mountains and dissected, upland plains; coastal areas largely plains and rolling hills
Climate
tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May)
Natural Hazards
occasional severe storms and forest fires in the Darien area
Current Environmental 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
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People & Demographics

Religion

Languages Spoken

Spanish (official), English 14%

  • Spanish

Population

Population
3,410,676
Population in Major Urban Areas
PANAMA CITY (capital) 1.426 million
Nationality Noun
Panamanian(s)
Ethnic Groups
mestizo (mixed Amerindian and white) 70%, Amerindian and mixed (West Indian) 14%, white 10%, Amerindian 6%
Language Note
Spanish is the official language although many Panamanians in business and the professions speak English.

Education

Literacy Definition
age 15 and over can read and write

Health Information

Major Infectious Diseases — degree of risk
intermediate
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Government & Politics

Country Identity

Country Name
Panama
Full Country Name
Republic of Panama
Local - Long
Republica de Panama
Local - Short
Panama

Government Structure

Government Type
constitutional democracy
Legal System
based on civil law system; judicial review of legislative acts in the Supreme Court of Justice; accepts compulsory ICJ jurisdiction, with reservations
Executive Branch
chief of state: President Jose Raul MULINO Carrizo (since 1 July 2024); Vice President Raisa BANFIELD Porcell (since 1 July 2024); note - the president is both the chief of state and head of government head of government: President Jose Raul MULINO Carrizo (since 1 July 2024); Vice President Raisa BANFIELD Porcell (since 1 July 2024); note - the president is both the chief of state and head of government cabinet: Cabinet appointed by the president elections: president and vice president elected on the same ticket by popular vote for five-year terms; election last held 5 May 2024 (next to be held May 2029); note - Panama has one vice president election results: Jose Raul MULINO Carrizo elected president; percent of vote - Jose Raul MULINO Carrizo 34.3%, Ricardo LOMBANA 24.0%, Martin TORRIJOS Espino 15.8%, Romulo ROUX 11.4%, others 14.5% note: ruling party - RM (Realizando Metas)
Legislative Branch
unicameral National Assembly (formerly called Legislative 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 40, PA 17, PS 8, MOLIRENA 3, CD 2, PP 2, PLN 1, other 5 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
Suffrage
18 years of age; universal and compulsory
Constitution
11 October 1972; major reforms adopted 1978, 1983 and 1994
Independence
3 November 1903 (from Colombia; became independent from Spain 28 November 1821)
National Holiday
Independence Day, 3 November (1903)

Capital City

Capital Name
Panama City
Capital - geographic coordinate
8 58 N, 79 32 W
Capital Time Difference
UTC-5 (same time as Washington, DC, during Standard Time)

according to tradition, the name derives from a former fishing area near the present capital - an indigenous village and its adjacent beach - that were called "panama" meaning "an abundance of fish"

Military

Branches: no regular military forces; Panamanian Public Security Forces (subordinate to the Ministry of Public Security), comprising the National Police (PNP), National Air-Naval Service (SENAN), National Border Service (SENAFRONT)

Embassy / Diplomatic Mission

U.S. Embassy Panama

Physical location: Avenida Demetrio Basilio Lakas, Building No.783 in the Clayton section of Panama City.

International mailing address: Apartado 0816-02561, Zona 5, Panama, Republic of Panama.

U.S. mailing address: U.S. Embassy Panama, 9100 Panama City Place, Washington, DC 20521-9100.

Telephone: (011) 507-317-5000 or (011) 507-317-5030 from the U.S., 317-5000 or 317-5030 from Panama

Emergency after-hours telephone: (011) 507-317-5000 from the U.S., 317-5000 from Panama

Facsimile: (011) 507-317-5568 or (011) 507-317-5303 (317-5568 or 317-5303)

You may also send the Embassy inquiries by e-mail to panama-acs@state.gov

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Economy

Panama's dollarized economy is anchored by a robust services sector, which accounts for roughly three-quarters of GDP. Key services include operation of the Panama Canal, banking, the Colón Free Zone, insurance, container ports, the world's largest ship registry by flag, and tourism. The 2016 expansion of the Panama Canal, which added a third set of locks capable of handling Neopanamax vessels, has significantly boosted transit revenues and reinforced the country's role as a global logistics hub.

Panama was one of Latin America's fastest-growing economies in the 2010s, though growth slowed sharply during the COVID-19 pandemic before rebounding strongly in 2021 and 2022. More recently, the economy has faced headwinds from the court-ordered closure of the Cobre Panamá copper mine in late 2023, which had accounted for roughly 5 percent of GDP, as well as drought conditions that reduced Panama Canal transits due to low water levels in Gatún Lake. Persistent challenges include high public debt, income inequality, elevated unemployment, and the country's continued presence on international watchlists related to financial transparency following the Panama Papers revelations.

The government continues to promote infrastructure investment, logistics, tourism, and regional trade agreements to sustain growth, while pursuing fiscal reforms aimed at restoring investor confidence and sovereign credit ratings.

Snapshot

Currency Name and Code
Panamanian Balboa (PAB) and US Dollar (USD)
GDP — official exchange rate
$14,890,000,000 (USD)
GDP Real Growth Rate
6.4%
Gini Index
56.4

Banknotes

Panama Money - Front
Panama Money - Front
Panama Money - Back
Panama Money - Back

Budget & Public Finance

Fiscal Year
calendar year
Annual Budget
$3,959,000,000 (USD)
Public Debt (% of GDP)
73.2%
External Debt
$9,859,000,000 (USD)
Investment (% of GDP)
17.8%
Economic Aid
$197,100,000 (USD)
Current Account Balance
-$559,000,000 (USD)
Reserves of Foreign Exchange
$981,000,000 (USD)

Labor, Industry & Trade

Labor Force by Occupation
agriculture 20.8%; industry 18%; services 61.2%
Household Income — highest 10%
35.7%
Industries
construction, petroleum refining, brewing, cement and other construction materials, sugar milling
Agriculture Products
bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp
Export Commodities
bananas, shrimp, sugar, coffee, clothing
Export Partners
US 47.8%, Sweden 5.8%, Costa Rica 4.8%, Honduras 4.5%
Import Commodities
capital goods, crude oil, foodstuffs, consumer goods, chemicals
Import Partners
US 34.4%, Colombia 5.9%, Japan 5.4%, Costa Rica 4.2%, Venezuela 4.2%

Energy

Oil Production
0 bbl/day
Oil Consumption
78,000 bbl/day
Oil Reserves
0 bbl/day
Natural Gas Production
0 cu m
Natural Gas Consumption
0 cu m
Natural Gas Imports
0 cu m
Natural Gas Exports
0 cu m
Natural Gas Reserves
0 cu m

Communications

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 (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
Internet Country Code
.pa

News & Weather

Videos

1 curated YouTube videos.

  • Source: YouTube

Frequently Asked Questions

What is the population of Panama?
The population of Panama is approximately 3.4M.
How do people greet each other in Panama?
Panamanians are gracious and polite, greeting with handshakes; two men always shake hands, women friends kiss on one cheek, and men and women sometimes kiss on the cheek. Small talk to learn about someone personally comes before any business discussion. Do: Shake hands when meeting (American handshake or palm-to-palm with thumb facing the person) Make personal small talk before discussing business Say por favor (please), gracias (thank you), and de nada (you're welcome) Ask permission to join a group by saying con permiso Don't: Don't start a business conversation before getting to know the other party personally Don't discuss personal possessions Don't bring up the building of the canal or U.S. intervention Don't discuss local politics or race in social settings Panamanians have two surnames: the father's first, then the mother's Favorite conversation topics are family, mutual friends, hobbies, interests, and sports To beckon someone, raise a hand with the palm facing them
What are dining customs like in Panama?
Panamanians eat three hearty meals a day and serve rice with nearly every meal; the national dish is sancocho, a spicy chicken-and-vegetable stew. Families usually eat together with a big breakfast and the main meal at midday. Do: Eat everything on your plate as a sign of good manners Signal you've finished by placing your knife and fork vertically and parallel on the plate Try ceviche, tamales, sancocho, arroz con pollo, and sopa borracha The father sits at the head of the table; a guest of honor sits at the opposite end Tip servers about 15% of the bill Chicha (fresh fruit, water, sugar) is a popular drink, and coffee is usual at breakfast A panadería sells bread, a pastelería sells pastries, and a cantina is a drinking establishment
What social etiquette should I know when visiting?
Guests follow specific customs at social gatherings, including introducing themselves and bringing a small gift for the host. Punctuality expectations vary by the size of the event. Do: Introduce yourself to other guests at large gatherings Bring a small gift for the host or hostess at any party Arrive within a half-hour at a small party Don't: Don't arrive later than a half-hour at a smaller party Arriving up to two hours late is acceptable at large gatherings In the interior, friends exchange modest gifts like food or seedlings, not expensive items
How should I dress in Panama?
Panamanians are fairly conservative and formal in dress, and they frown on wearing shorts in public regardless of the heat. Many wear North American styles, though men may wear a loose guayabera shirt. Do: Dress conservatively; wear lightweight suits in professions like banking and law Abide by the local dress code even as a foreigner Don't: Don't wear shorts in public, especially women, for whom shorts or pants in public are considered inappropriate Traditional women's dress is the pollera with a peineta headpiece; men's is the montuno with a pintado straw hat and sandals Tourists are granted some leniency for wearing shorts, but locals prefer you follow their dress code
What is family life like in Panama?
Family is essential to Panamanians and receives their ultimate loyalty, often with three generations living under one roof, especially in rural areas. Members support each other through life and love celebrating holidays together. Panamanians are often more loyal to parents and siblings than to spouses Godparents are chosen with great care and play an integral role in a child's life In Cuna society men dominate; women inherit land from their fathers and make molas Urban girls have more freedom than those in the interior, where dating is more restricted
What do people do for fun in Panama?
Baseball is the most popular sport, learned from Americans who worked on the canal, and soccer is the national sport. The pleasant weather and rich wildlife make outdoor activities popular. Popular activities include swimming, diving, deep-sea fishing, snorkeling, and scuba diving Other sports include volleyball, cycling, hiking, basketball, boxing, tennis, softball, and horse racing With over 940 bird species, bird watching is popular Sailing and mountain fitness activities are also enjoyed
What is the capital of Panama?
Panama City is the capital and largest city of Panama, situated at the Pacific entrance of the Panama Canal. Founded by Spanish colonizers in 1519, it is one of the oldest continuously inhabited European settlements on the Pacific coast of the Americas. Today, Panama City serves as the country's political, financial, and cultural hub, and its skyline — a striking mix of colonial-era architecture and modern high-rises — reflects Panama's role as a major international banking and commerce center.
Where is Panama located?
Panama is located in Central America, forming the southernmost part of the North American landmass. It occupies the narrow Isthmus of Panama, which connects Central and South America and separates the Caribbean Sea to the north from the Pacific Ocean to the south. This strategic geographic position, bridging two continents and two oceans, has defined Panama's history, economy, and international significance throughout the modern era.
What countries border Panama?
Panama shares land borders with two countries: Colombia to the southeast and Costa Rica to the northwest. To the north, Panama fronts the Caribbean Sea, while its southern coastline runs along the Pacific Ocean. The border with Colombia cuts through the largely roadless and biodiverse Darién Gap, one of the most ecologically dense regions in the Western Hemisphere and notably the only break in the Pan-American Highway.
What is the main religion practiced in Panama?
Roman Catholicism is the dominant religion in Panama, practiced by approximately 85 percent of the population. Protestant denominations account for roughly 15 percent of believers, a proportion that has grown steadily in recent decades largely through the influence of evangelical and Pentecostal movements. Religious observance is woven into Panamanian social life, and Catholic traditions shape many national holidays, family celebrations, and cultural rituals throughout the country.
What currency is used in Panama?
Panama officially uses two currencies: the Panamanian Balboa (PAB) and the US Dollar (USD), which circulate on a strict one-to-one parity. The Balboa, named after Spanish explorer Vasco Núñez de Balboa, exists primarily as coins; paper currency in everyday circulation is entirely US dollars. This arrangement, in place since Panama's independence in 1903, reflects the country's historically close economic and political ties with the United States.
What language is spoken in Panama?
Spanish is the official language of Panama and is spoken by the vast majority of the population. English is spoken by approximately 14 percent of Panamanians and functions as an important second language in business, banking, and in the former Canal Zone communities. Indigenous languages, including Ngäbere, Kuna, and Emberá, are also spoken by various native communities, reflecting the country's considerable ethnic and cultural diversity.
What is Panama known for?
Panama is most closely identified with the Panama Canal, the 80-kilometer waterway completed in 1914 that links the Atlantic and Pacific Oceans and remains one of the world's most strategically vital shipping routes. The country is also recognized for its biodiversity — including cloud forests, coral reefs, and the wildlife-rich Darién region — as well as for being a major international banking center. Culturally, Panama is celebrated for its traditional pollera dress, vibrant carnival celebrations, and the distinctive cumbia and tamborito musical traditions.
What is the geography of Panama like?
Panama occupies the narrow Isthmus of Panama in Central America, with coastlines on both the Pacific Ocean and the Caribbean Sea. The terrain is predominantly mountainous in the interior, with the Cordillera Central running along much of the country's spine; the highest point is Volcán Barú at 3,474 meters. Tropical rainforest covers large portions of the country, particularly in the Darién province near the Colombian border, making Panama one of the most biologically diverse nations on Earth relative to its size.

Last reviewed 2026