Be ready to fall in love with Panama
Panama, officially the Republic of Panama, is a country located at the southern end of Central America on the Isthmus of Panama.
Panama is a transcontinental country that connects Central and South America. It borders Costa Rica to the west and Colombia to the southeast. The country is best known for the Panama Canal, a vital waterway that links the Atlantic and Pacific Oceans. The canal crosses the Isthmus of Panama and plays a key role in global maritime trade. Recognized as one of the “Seven Wonders of the Modern World” by the American Society of Civil Engineers, it remains one of the most ambitious engineering feats ever completed. Along with tourism and international banking, the canal is a major contributor to Panama’s economy.
Panama also encompasses over 1,800 islands, many of them uninhabited and surrounded by lush vegetation or coral reefs. These islands fall into four major regions:
- Bocas del Toro Archipelago, in the Caribbean, known for its laid-back vibe, surf spots, and vibrant Afro-Caribbean culture
- Guna Yala (San Blas Islands), also in the Caribbean, governed by the Guna indigenous people and famous for their autonomy and preserved traditions
- Las Perlas Archipelago, in the Gulf of Panama, home to pristine beaches, whale watching, and upscale island retreats
- Gulf of Chiriquí, on the Pacific side, which includes Coiba National Park, a UNESCO World Heritage Site rich in marine biodiversity
Panama has long been a place of passage, a crossroads for explorers, traders, and travelers. Today, it is attracting a new generation of visitors drawn not only by its strategic location but by its natural beauty, cultural richness, and welcoming spirit.
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Capital
Panama City (Ciudad de Panamá)
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Area
75,517 km²
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Population
Approximately 4.5 million (2023 estimate)
Includes about 1.5 million in the Panama City metropolitan area. -
Language
Spanish is the official language. Several indigenous languages are also spoken, including Ngäbere, Guna, and Emberá, primarily in autonomous indigenous regions.
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Religions
Roman Catholicism is the dominant religion, but Evangelical Christianity has grown significantly in recent decades. Other faiths are practiced, including Baha’i, Judaism, Islam, and indigenous spiritual beliefs.
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Government
Panama is a constitutional democracy with a multi-party system.
The President and Vice President are elected by popular vote for a single five-year term and are not immediately re-electable.
The unicameral legislature (National Assembly) has 71 members, also elected by universal suffrage.
- The country is divided into 10 provinces and 5 indigenous comarcas (semi-autonomous regions), including Guna Yala (formerly San Blas), which is not officially part of Colón Province, despite some outdated references.
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Currency
Balboa (PAB) and United States Dollar (USD)
- The Balboa is pegged 1:1 to the U.S. dollar.
- U.S. dollar banknotes are used in all cash transactions.
- Panamanian coins (centésimos de balboa) are equivalent in size and value to U.S. coins and used interchangeably.