Central America and Caribbean :: Panama page last updated on September 11, 2009
Introduction ::Panama 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 to expand the Canal. The project, which began in 2007 and could double the Canal's capacity, is expected to be completed in 2014-15. Geography ::Panama Location: Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica Geographic coordinates: 9 00 N, 80 00 W Map references: Central America and the Caribbean Area: total: 75,420 sq km country comparison to the world: 124 land: 74,340 sq km water: 1,080 sq km
Area - comparative: slightly smaller than South Carolina Land boundaries: total: 555 km border countries: Colombia 225 km, Costa Rica 330 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 and dissected, upland plains; coastal areas largely plains and rolling hills Elevation extremes: lowest point: Pacific Ocean 0 m highest point: Volcan Baru 3,475 m Natural resources: copper, mahogany forests, shrimp, hydropower Land use: arable land: 7.26% permanent crops: 1.95% other: 90.79% (2005) Irrigated land: 430 sq km (2003) Total renewable water resources: 148 cu km (2000) Freshwater withdrawal (domestic/industrial/agricultural): total: 0.82 cu km/yr (67%/5%/28%) per capita: 254 cu m/yr (2000) Natural hazards: occasional severe storms and forest fires in the Darien area 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 Environment - 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 signed, but not ratified: Marine Life Conservation 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 People ::Panama Population: 3,360,474 (July 2009 est.) country comparison to the world: 135 Age structure: 0-14 years: 29.3% (male 501,950/female 481,750) 15-64 years: 63.9% (male 1,085,435/female 1,061,530) 65 years and over: 6.8% (male 106,934/female 122,875) (2009 est.) Median age: total: 27 years male: 26.6 years female: 27.3 years (2009 est.) Population growth rate: 1.503% (2009 est.) country comparison to the world: 87 Birth rate: 20.18 births/1,000 population (2009 est.) country comparison to the world: 96 Death rate: 4.66 deaths/1,000 population (July 2009 est.) country comparison to the world: 196 Net migration rate: -0.49 migrant(s)/1,000 population (2009 est.) country comparison to the world: 112 Urbanization: urban population: 73% of total population (2008) rate of urbanization: 2.7% annual rate of change (2005-10 est.) Sex ratio: at birth: 1.04 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 1.02 male(s)/female 65 years and over: 0.87 male(s)/female total population: 1.02 male(s)/female (2009 est.) Infant mortality rate:
total: 12.67 deaths/1,000 live births country comparison to the world: 139 male: 13.53 deaths/1,000 live births female: 11.77 deaths/1,000 live births (2009 est.) Life expectancy at birth: total population: 77.25 years country comparison to the world: 59 male: 74.47 years female: 80.16 years (2009 est.) Total fertility rate: 2.53 children born/woman (2009 est.) country comparison to the world: 92 HIV/AIDS - adult prevalence rate: 1% (2007 est.) country comparison to the world: 53 HIV/AIDS - people living with HIV/AIDS: 20,000 (2007 est.) country comparison to the world: 80 HIV/AIDS - deaths: fewer than 1,000 (2007 est.) country comparison to the world: 77 Major infectious diseases: degree of risk: intermediate food or waterborne diseases: bacterial diarrhea vectorborne disease: dengue fever and malaria (2009) Nationality: noun: Panamanian(s) adjective: Panamanian Ethnic groups: mestizo (mixed Amerindian and white) 70%, Amerindian and mixed (West Indian) 14%, white 10%, Amerindian 6% Religions: Roman Catholic 85%, Protestant 15% Languages: Spanish (official), English 14%; note - many Panamanians bilingual Literacy: definition: age 15 and over can read and write total population: 91.9% male: 92.5% female: 91.2% (2000 census) School life expectancy (primary to tertiary education):
total: 13 years male: 13 years female: 14 years (2006) Education expenditures: 3.8% of GDP (2004) country comparison to the world: 114 Government ::Panama 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 geographic coordinates: 8 58 N, 79 32 W time difference: UTC-5 (same time as Washington, DC during Standard Time) Administrative divisions: 11 provinces (provincias, singular - provincia) and 1 territory* (comarca); Bocas del Toro, Comarca Kuna Yala, Comarca Ngobe-Bugle, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos, Panama, San Blas* (Kuna Yala), and Veraguas Independence: 3 November 1903 (from Colombia; became independent from Spain 28 November 1821) National holiday: Independence Day, 3 November (1903) Constitution: 11 October 1972; revised in 1978, 1983, 1994, and 2004 Legal system: based on civil law system; judicial review of legislative acts in the Supreme Court of Justice; accepts compulsory ICJ jurisdiction with reservations Suffrage: 18 years of age; universal and compulsory Executive branch: chief of state: President Ricardo MARTINELLI Berrocal (since 1 July 2009); Vice President Juan Carlos VARELA (since 1 July 2009); note - the president is both the chief of state and head of government head of government: President Ricardo MARTINELLI Berrocal (since 1 July 2009); Vice President Juan Carlos VARELA (since 1 July 2009) cabinet: Cabinet appointed by the president elections: president and vice president elected on the same ticket by popular vote for five-year terms (not eligible for immediate reelection; president and vice president must sit out two additional terms (10 years) before becoming eligible for reelection); election last held
3 May 2009 (next to be held in 2014) election results: Ricardo MARTINELLI Berrocal elected president; percent of vote - Ricardo MARTINELLI Berrocal 60%, Balbina HERRERA 38%, Guillermo ENDARA Galimany 2% note: government coalition - PRD (Democratic Revolutionary Party), PP (Popular Party) Legislative branch: unicameral National Assembly or Asamblea Nacional (71 seats; members are elected by popular vote to serve five-year terms) elections: last held 3 May 2009 (next to be held May 2014) election results: percent of vote by party - NA; seats by party - PRD 26, Panamenista 22, CD 14, PU 4, Independent 2, MOLIRENA 2, PP 1 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 Political parties and leaders: Democratic Change or CD [Ricardo MARTINELLI]; Democratic Revolutionary Party or PRD [Martin TORRIJOS Espino]; Nationalist Republican Liberal Movement or MOLIRENA [Sergio GONZALEZ-Ruiz]; Panamenista Party [Juan Carlos VARELA] (formerly the Arnulfista Party); Patriotic Union Party or UP (combination of the Liberal National Party or PLN and the Solidarity Party or PS)[Guillermo "Billy" FORD and Anibal GALINDO]; Popular Party or PP [Rene ORILLAC] (formerly Christian Democratic Party or PDC) Political pressure groups and leaders: Chamber of Commerce; National Civic Crusade; National Council of Organized Workers or CONATO; National Council of Private Enterprise or CONEP; National Union of Construction and Similar Workers (SUNTRACS); Panamanian Association of Business Executives or APEDE; Panamanian Industrialists Society or SIP; Workers Confederation of the Republic of Panama or CTRP International organization participation: BCIE, CAN (observer), CSN (observer), FAO, G-77, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAES, LAIA (observer), MIGA, NAM, OAS, OPANAL, OPCW, PCA, RG, SICA, UN, UNASUR (observer), UNCTAD, UNESCO, UNIDO, Union Latina, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO Diplomatic representation in the US: chief of mission: Ambassador (vacant) chancery: 2862 McGill Terrace NW, Washington, DC 20008 telephone: [1] (202) 483-1407 FAX: [1] (202) 483-8416 consulate(s) general: Atlanta, Houston, Miami, New Orleans, New York, Philadelphia, San Diego, San Francisco, Tampa Diplomatic representation from the US: chief of mission: Ambassador Barbara J. STEPHENSON embassy: Edificio 783, Avenida Demetrio Basilio Lakas Panama, Apartado Postal 0816-02561, Zona 5, Panama City
mailing address: American Embassy Panama, Unit 0945, APO AA 34002 telephone: [507] 207-7000 FAX: [507] 317-5568 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 Economy ::Panama Economy - overview: Panama's dollarized economy rests primarily on a well-developed services sector that accounts for 80% of GDP. Services include operating the Panama Canal, banking, the Colon Free 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 scheduled to be completed by 2014 at a cost of $5.3 billion - about 25% of current GDP. The expansion project will more than double the Canal's capacity, enabling it to accommodate ships that are now too large to transverse the transoceanic crossway, and should help to reduce the high unemployment rate. Strong economic performance has reduced the national poverty level to 29% in 2008; however, Panama has the second most unequal income distribution in Latin America. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. Not a CAFTA signatory, Panama in December 2006 independently negotiated a free trade agreement with the US, which, when implemented, will help promote the country's economic growth. GDP (purchasing power parity): $38.83 billion (2008 est.) country comparison to the world: 99 $35.56 billion (2007 est.) $31.89 billion (2006 est.) note: data are in 2008 US dollars GDP (official exchange rate): $23.09 billion (2008 est.) GDP - real growth rate: 9.2% (2008 est.) country comparison to the world: 15 11.5% (2007 est.) 8.5% (2006 est.) GDP - per capita (PPP): $11,700 (2008 est.) country comparison to the world: 94 $10,900 (2007 est.) $9,900 (2006 est.) note: data are in 2008 US dollars GDP - composition by sector: agriculture: 6.4% industry: 17.2% services: 76.4% (2008 est.)
Labor force: 1.392 million country comparison to the world: 132 note: shortage of skilled labor, but an oversupply of unskilled labor (2008 est.) Labor force - by occupation: agriculture: 15% industry: 18% services: 67% (2006) Unemployment rate: 5.6% (2008 est.) country comparison to the world: 68 6.4% (2007 est.) Population below poverty line: 28.6% (2006 est.) Household income or consumption by percentage share: lowest 10%: 0.8% highest 10%: 41.4% (2006) Distribution of family income - Gini index: 56.1 (2003) country comparison to the world: 12 48.5 (1997) Investment (gross fixed): 25.7% of GDP (2008 est.) country comparison to the world: 47 Budget: revenues: $6.02 billion expenditures: $5.923 billion (2008 est.) Public debt: 45.3% of GDP (2008 est.) country comparison to the world: 44 69.2% of GDP (2004 est.) Inflation rate (consumer prices): 8.8% (2008 est.) country comparison to the world: 137 4.2% (2007 est.) Commercial bank prime lending rate: NA% (31 December 2008) country comparison to the world: 103 8.25% (31 December 2007) Stock of money:
$NA (31 December 2008) country comparison to the world: 81 $3.054 billion (31 December 2007) Stock of quasi money: $NA (31 December 2008) country comparison to the world: 55 $14.26 billion (31 December 2007) Stock of domestic credit: $NA (31 December 2008) country comparison to the world: 74 $17.4 billion (31 December 2007) Market value of publicly traded shares: $6.568 billion (31 December 2008) country comparison to the world: 80 $6.219 billion (31 December 2007) $5.716 billion (31 December 2006) Agriculture - products: bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp Industries: construction, brewing, cement and other construction materials, sugar milling Industrial production growth rate: 14.2% (2008 est.) country comparison to the world: 2 Electricity - production: 5.805 billion kWh (2006 est.) country comparison to the world: 105 Electricity - consumption: 4.768 billion kWh (2006 est.) country comparison to the world: 108 Electricity - exports: 124.9 million kWh (2007 est.) Electricity - imports: 8.74 million kWh (2007 est.) Oil - production: 0 bbl/day (2007 est.) country comparison to the world: 121 Oil - consumption: 92,790 bbl/day (2006 est.) country comparison to the world: 77 Oil - exports: 4,447 bbl/day (2005) country comparison to the world: 104
Oil - imports: 88,790 bbl/day (2005) country comparison to the world: 69 Oil - proved reserves: 0 bbl (1 January 2006 est.) country comparison to the world: 139 Natural gas - production: 0 cu m (2007 est.) country comparison to the world: 150 Natural gas - consumption: 0 cu m (2007 est.) country comparison to the world: 143 Natural gas - exports: 0 cu m (2007 est.) country comparison to the world: 138 Natural gas - imports: 0 cu m (2007 est.) country comparison to the world: 129 Natural gas - proved reserves: 0 cu m (1 January 2006 est.) country comparison to the world: 145 Current account balance: -$2.792 billion (2008 est.) country comparison to the world: 148 -$1.422 billion (2007 est.) Exports: $10.29 billion (2008 est.) country comparison to the world: 87 $9.338 billion (2007 est.) note: includes the Colon Free Zone Exports - commodities: bananas, shrimp, sugar, coffee, clothing Exports - partners: US 17.2%, Germany 14.6%, Italy 9%, Greece 6.1%, Netherlands 4.8%, Denmark 4.2%, Spain 4.2% (2008) Imports: $15 billion (2008 est.) country comparison to the world: 82 $12.52 billion (2007 est.) note: includes the Colon Free Zone Imports - commodities: capital goods, foodstuffs, consumer goods, chemicals
Imports - partners: Japan 29.5%, Singapore 17.6%, China 15.4%, US 13.2%, France 4.5% (2008) Reserves of foreign exchange and gold: $2.443 billion (31 December 2008 est.) country comparison to the world: 103 $1.935 billion (31 December 2007 est.) Debt - external: $10.89 billion (31 December 2008 est.) country comparison to the world: 80 $10.45 billion (31 December 2007 est.) Stock of direct foreign investment - at home: $NA Stock of direct foreign investment - abroad: $NA Exchange rates: balboas (PAB) per US dollar - 1 (2008 est.), 1 (2007), 1 (2006), 1 (2005), 1 (2004) note: the US dollar is the legal currency Communications ::Panama Telephones - main lines in use: 491,900 (2007) country comparison to the world: 99 Telephones - mobile cellular: 2.392 million (2007) country comparison to the world: 106 Telephone system: general assessment: domestic and international facilities well developed domestic: combined fixed-line and mobile-cellular teledensity is approaching 90 per 100 persons 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 (2007) Radio broadcast stations: AM 101, FM 134, shortwave 0 (1998) Television broadcast stations: 38 (including repeaters) (1998) Internet country code: .pa Internet hosts: 7,858 (2008) country comparison to the world: 112
Internet users: 525,200 (2007) country comparison to the world: 98 Transportation ::Panama Airports: 117 (2008) country comparison to the world: 50 Airports - with paved runways: total: 54 over 3,047 m: 1 2,438 to 3,047 m: 1 1,524 to 2,437 m: 5 914 to 1,523 m: 17 under 914 m: 30 (2008) Airports - with unpaved runways: total: 63 1,524 to 2,437 m: 1 914 to 1,523 m: 11 under 914 m: 51 (2008) Heliports: 2 (2007) Railways: total: 76 km country comparison to the world: 129 standard gauge: 76 km 1.435-m gauge (2008) Roadways: total: 11,978 km country comparison to the world: 133 paved: 4,300 km unpaved: 7,678 km (2002) Waterways: 800 km (includes 82 km Panama Canal) (2008) country comparison to the world: 73 Merchant marine: total: 6,323 country comparison to the world: 1 by type: barge carrier 2, bulk carrier 2,143, cargo 1,208, carrier 13, chemical tanker 565, combination ore/oil 6, container 790, liquefied gas 189, passenger 44, passenger/cargo 71, petroleum tanker 557, refrigerated cargo 265, roll on/roll off 128, specialized tanker 29, vehicle carrier 313 foreign-owned: 5,394 (Albania 2, Argentina 8, Australia 4, Azerbaijan 1, Bahamas 9, Bangladesh 2, Belgium 2, British Virgin Islands 1, Bulgaria 3, Burma 1, Canada 18, Chile 12, China 532, Colombia 4, Croatia 3, Cuba 10, Cyprus 19, Denmark 40, Dominican Republic 1, Ecuador 4, Egypt 17, Estonia 5, Finland 2, France 5, Gabon 1, Germany 44, Gibraltar 1,
Greece 510, Hong Kong 130, India 27, Indonesia 31, Iran 7, Israel 3, Italy 28, Japan 2,335, Jordan 13, North Korea 1, South Korea 303, Kuwait 2, Latvia 8, Lebanon 5, Lithuania 7, Malaysia 12, Maldives 1, Malta 3, Mexico 2, Monaco 16, Netherlands 14, Nigeria 10, Norway 89, Oman 2, Pakistan 9, Peru 16, Philippines 7, Poland 11, Portugal 9, Qatar 1, Romania 7, Russia 18, Saudi Arabia 16, Singapore 100, Spain 50, Sri Lanka 1, Sweden 6, Switzerland 25, Syria 32, Taiwan 320, Thailand 10, Tunisia 1, Turkey 94, Turks and Caicos Islands 1, Ukraine 10, UAE 109, UK 59, US 126, Venezuela 10, Vietnam 30, Yemen 6) registered in other countries: 3 (Marshall Islands 1, Sierra Leone 1, Venezuela 1) (2008) Ports and terminals: Balboa, Colon, Cristobal Military ::Panama Military branches: no regular military forces; Panamanian public forces include: Panamanian National Police (PNP), National Air-Naval Service (SENAN), National Border Service (SENAFRONT) (2009) Manpower available for military service: males age 16-49: 851,044 (2008 est.) Manpower fit for military service: males age 16-49: 705,160 females age 16-49: 710,521 (2009 est.) Manpower reaching militarily significant age annually: male: 31,089 female: 29,939 (2009 est.) Military expenditures: 1% of GDP (2006) country comparison to the world: 138 Military - note: on 10 February 1990, the government of then President ENDARA abolished Panama's military and reformed the security apparatus by creating the Panamanian Public Forces; in October 1994, Panama's Legislative Assembly approved a constitutional amendment prohibiting the creation of a standing military force but allowing the temporary establishment of special police units to counter acts of "external aggression" Transnational Issues ::Panama Disputes - international: organized illegal narcotics operations in Colombia operate within the remote border region with Panama Trafficking in persons: current situation: Panama is a source, transit, and destination country for women and children trafficked for the purpose of commercial sexual exploitation; the majority of victims are Panamanian women and children trafficked within the country into the sex trade; rural children in Panama may be trafficked internally to urban areas for labor exploitation tier rating: Tier 2 Watch List - Panama is on the Tier 2 Watch List for failing to show evidence of increasing efforts to combat human trafficking, particularly with respect to prosecuting, convicting, and sentencing human traffickers for their crimes, and for failing to
provide adequate victim assistance (2008) 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