Panama straddles the lowest and narrowest part of the isthmus connecting North and South America, at the very heart of the American continent. The Darien Gap, a dense and nearly impenetrable swath of jungle, forms a natural barrier between Panama and Colombia.

Situated between Costa Rica to the west and Columbia to the east, the country's S-shaped contour leads to some counter-intuitive compass readings, with the Caribbean to the north and the Pacific Ocean to the south.

Panama is part of a landmass that emerged from the seas only 70 million years ago, forming a bridge between the Americas. As a result, it enjoys a rich biodiversity with a blend of more than 10,000 plant and 1000 bird species.

At just 76,000 square kilometers, Panama is slightly smaller than South Carolina, and only 177 kilometers at its widest point; on a clear day, views from the inland mountains take in both oceans.

Its long, sinous shape means Panama has nearly 2500 kilometers of coastline, and an abundance of white, sandy beaches, coral reefs and islands.

The capital is Panama City, which has the distinction of being the only major Latin American city with a rainforest just minutes from the downtown core.

Climate

Panama has just two seasons, rainy and dry. The dry season, summer, lasts from roughly mid-December to the end of April. Strong trade winds blow during the dry season and the relative humidity drops to an average 70%.

The change between seasons can be quite dramatic, as near-drought gives way to torrential rains, seemingly overnight. During the rainy season the relative humidity might remain around 90 to 100% with slightly cooler temperatures. Rainfall tends to be higher on the Caribbean side.

Panama lies outside the “hurricane alley”, and while it experiences the occasional tremor, it is not prone to destructive earthquakes. The climate is warm and tropical with an average temperature of 27°C (80°F) throughout the year.

The humidity can be quite high, especially in the rainy season, but nights are refreshing since breezes rise at dusk in much of the country. Inland, at higher altitudes, the climate can be springlike, with cooler temperatures in the low 20s°C (mid-60s°F).The highest mountain ranges, such as the Cordillera de Talamanca in the west, can even experience frost.

History

Panama's geographic position and narrow shape have played key roles in its modern history as explorers quickly realized its value as a bridge between two oceans.

Prior to its discovery in 1501 by Rodrigo de Bastidas, a captain who accompanied Columbus on his second voyage to America, the isthmus was home to more than 60 indigenous Indian tribes, including Mayas, Chibchas and Cuevas, whose pre-Colombian heritage extended back some 12,000 years.

New World weapons and disease quickly decimated the native populations, estimated between one and two million, as Spain seized upon the area's geographical advantages. Panama City was established in 1519, becoming a focal point in Spanish exploration and expansion. Caravans moved silver, pearls and Peruvian gold across the isthmus to awaiting galleons which bore the riches to Spain.

By the late 17th century, Panama's importance began to wane as Spain lost power in Europe; the overland trek between the oceans was labor intensive and vulnerable to attack, and many ships chose to sail around Cape Horn instead. Panama joined with present-day Venezuela, Colombia and Ecuador to form Greater Colombia.

In 1880 Colombia signed a treaty with France to construct a canal across the narrow isthmus. By 1889, however, the project stalled, suffering huge losses of men and finances to yellow fever, malaria and harsh conditions.

In 1902, U.S. President Theodore Roosevelt moved to take on the abandoned works. When Colombia balked at the terms of the treaty the following year, which stipulated a 100-year lease on an area 10 miles wide and 50 miles long (16km by 80km), the U.S. engineered Panama 's independence movement, backed by the presence of the gunboat USS Nashville.

The Canal was completed by 1914, and is considered one of the engineering wonders of the world. The U.S. assumed full control of the Canal after construction was completed, enforced by the presence of U.S. troops in Panama until 1977, when an agreement was signed to transfer control of the Canal back to Panama by 1999.

Over the next 20 years, Panama assumed increasing responsibility over the Canal until just before the new millenium, when the Canal and remaining US military bases were turned over. Nevertheless, the U.S. retains the perpetual right to military intervention to protect its economic interests in the Canal.

Today, Panama is a melting pot of cultures, with the majority of its population of 3.2 million of mixed Spanish, Chinese, African and indigenous descent, reflecting the many laborers who came to build the Canal and railroad in the previous centuries.

Panama also boasts one of the largest Jewish communities in the region, and strong Muslim, East and South Asian communities. Spanish is the official language, and English is widely spoken in the capital city and Canal Zone, where more than half the population now lives.

Quick Facts

Motto: Pro Mundi Beneficio (For the benefit of the world)
Government Type: Constitutional democracy
Currency: balboa (PAB); US dollar (USD)
National Flower: Peristeria elata; Dove Orchid or Holy Ghost Orchid
National Bird: Harpy Eagle

Telephones - main lines in use: 440,100 (2005)
Telephones - mobile cellular: 1.352 million (2005)
International country code - 507
Infrastructure: 1 coaxial submarine cable; satellite earth stations - 2 Intelsat (Atlantic Ocean); connected to the Central American Microwave System

Television broadcast stations: 38 (including repeaters) (1998)
Internet country code: .pa
Internet hosts: 7,149 (2006)
Internet Service Providers (ISPs): 6 (2000)
Internet users: 300,000 (2005)

Airports: 117 (2006)
Railways: 355 km
Roadways: 11,643 km
Waterways: 800 km (includes 82 km Panama Canal) (2005)
Ports and terminals: Balboa, Colon, Cristobal

Holidays

Useful Links

Republica de Panamá: General information and statistics on Panama
CIA World Factbook: General information and statistics on Panama

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