Panama

World Book Index

Introduction

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 that was named the Republic of Gran Colombia. When the union 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.

Geography

Area
total : 75,420 sq km
land: 74,340 sq km
water: 1,080 sq km

Climate
tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May)

Natural resources
copper, mahogany forests, shrimp, hydropower

People and Society

Population
total: 4,470,241 (2024 est.)

Ethnic groups
Mestizo (mixed Indigenous and White) 65%, Indigenous 12.3% (Ngabe 7.6%, Kuna 2.4%, Embera 0.9%, Bugle 0.8%, other 0.4%, unspecified 0.2%), Black or African descent 9.2%, Mulatto 6.8%, White 6.7% (2010 est.)

Languages
Spanish (official), Indigenous languages (including Ngabere (Guaymi), Buglere, Kuna, Embera, Wounaan, Naso (Teribe), and Bri Bri), Panamanian English Creole (a mixture of English and Spanish with elements of Ngabere, also known as Guari Guari and Colon Creole), English, Chinese (Yue and Hakka), Arabic, French Creole, other (Yiddish, Hebrew, Korean, Japanese)

Religions
Evangelical 55%, Roman Catholic 33.4%, none 10.1%, unspecified 1.5% (2023 est.)

Population growth rate
1.48% (2024 est.)

Government

Government type
presidential republic

Capital
name: Panama City

Executive branch
chief of state: President José Raúl MULINO Quintero (since 1 July 2024)
head of government: President José Raúl MULINO Quintero (since 1 July 2024)

Diplomatic representation in the US
chief of mission: Ambassador José Miguel ALEMÁN HEALY (since 18 September 2024)

Diplomatic representation from the US
chief of mission: Ambassador Kevin Marino CABRERA (since 5 May 2025)

Economy

Economic overview
upper middle-income Central American economy; increasing Chinese trade; US dollar user; canal expansion fueling broader infrastructure investment; services sector dominates economy; historic money-laundering and illegal drug hub

Real GDP (purchasing power parity)
$164.484 billion (2024 est.)
$159.908 billion (2023 est.)
$148.891 billion (2022 est.)

Real GDP per capita
$36,400 (2024 est.)
$35,900 (2023 est.)
$33,800 (2022 est.)

Exports
$37.376 billion (2024 est.)
$37.905 billion (2023 est.)
$35.717 billion (2022 est.)

Exports - partners
China 25%, Japan 10%, USA 6%, Thailand 5%, Costa Rica 5% (2023)

Exports - commodities
copper ore, ships, refined petroleum, bananas, fish (2023)

Imports
$30.887 billion (2024 est.)
$35.927 billion (2023 est.)
$32.646 billion (2022 est.)

Imports - partners
USA 15%, Colombia 13%, China 13%, Ecuador 13%, Japan 11% (2023)

Imports - commodities
crude petroleum, ships, refined petroleum, nitrogen compounds, cars (2023)

Human Development Index

The country's Human Development Index (HDI) is 0.839 , ranking it 59th out of 193 countries tested. (more information)

World Happiness Report

The World Happiness Report ranked the country 25th out of 158 countries tested with a score of 6.678. (more information)