Panamá. A Central American country located on the slender Isthmus of Panamá, acting as a vital land bridge between North and South America. With an area of approximately 30,000 sq. mi. (75,000km²), it is a little bigger than West Virginia and a little smaller than South Carolina. The country borders Costa Rica to the west and Colombia to the east, and has both Caribbean and Pacific coastlines, boasting over 1,500 islands.
The country’s unique S-shape results in the narrowest point being only about 30 miles (50km) wide, which is not where the Panamá Canal rests; the canal itself stretches roughly 50 miles (80km) across the country.
Panamá’s strategic geographical position led the U.S. to support independence from Colombia in 1903 for canal construction, a project that dramatically transformed global trade and travel. Its highest elevation is Volcán Barú at more than 11,000 feet (3,475m), and the Darién Gap, an impenetrable jungle used by migrants crossing, remains the only interruption in the Pan-American Highway.
History
Panamá’s history is marked by colonial encounters, independence movements, and international influences. Before Spanish arrival in the early 16th century, diverse Indigenous groups inhabited the region.
It remained under Spanish rule for about 300 years and later joined Gran Colombia after gaining independence in 1821, eventually separating in 1903 with significant U.S. involvement.
The completion of the Panamá Canal in 1914 initiated global significance for the country. Panamá experienced periods of dictatorship, notably under General Omar Torrijos and Manuel Noriega, but has operated as a democracy since the U.S. military intervention in 1989.
Economy
Modern Panamá is recognized as a regional economic powerhouse, anchored by the globally vital Panamá Canal and a dynamic services sector accounting for roughly 75–80% of GDP.
Financial services, logistics, and trade zones drive robust annual GDP growth rates, although income inequality persists beside overall prosperity.
The country’s dollarized economy encourages foreign investment and low inflation, but structural challenges remain, including poverty and disparity.
In recent years, the economy has rebounded from pandemic contraction, with strong performance in the transport, banking, and construction sectors.
Culture
Panamá is celebrated as a cultural melting pot, blending African, Indigenous, Spanish, and North American traditions. Music (such as tamborito and salsa), vibrant arts, and diverse cuisine reflect this rich hybridity.
The metropolitan culture, symbolized by cosmopolitan Panamá City, markedly contrasts with Hispanic rural traditions from cattle ranches and folk arts.
Distinctive Indigenous communities, like the Kuna, contribute textiles, oral literature, and social customs. Extended families are integral to social structure, and events like festivals and birthdays highlight communal values.
Environment
The nation’s biodiverse rainforests, tropical beaches, and mountainous divides support species from both continents, a direct result of its geologic youth that facilitated the “Great American Biotic Interchange.”
Ecotourism is well-developed, and conservation efforts underpin national pride in natural heritage.