Country Profile: Panama

Panama, located in Central America, strategically connects North and South America and boasts a diverse geography characterized by mountains and coastlines along the Caribbean Sea and North Pacific Ocean. With a population of approximately 4.47 million, the country has a rich cultural mix, predominantly comprising Mestizos and Indigenous peoples. The economy is classified as upper middle-income, heavily reliant on the services sector and bolstered by the Panama Canal, which has undergone significant expansion to enhance its capacity. Governance is structured as a presidential republic, with democratic elections and a focus on law enforcement rather than military forces.

Geography

Panama's geography features a tropical maritime climate and is primarily mountainous, with the highest point being Volcan Baru at 3,475 meters. The country covers an area of 75,420 square kilometers, and it shares borders with Colombia and Costa Rica. The strategic location of the Panama Canal links the North Atlantic Ocean with the North Pacific Ocean, cementing Panama's importance in global trade.

75,420 sq km: Total area of Panama
2,490 km: Length of coastline
687 km: Total land boundaries with Colombia and Costa Rica
360 m: Mean elevation above sea level
62.3%: Proportion of forested land (2023)

People and Society

Panama's population is approximately 4.47 million, with a diverse ethnic composition that includes 65% Mestizo, 12.3% Indigenous, and 9.2% of Black or African descent. Spanish is the official language, alongside various Indigenous languages and English. The population is predominantly urban, with about 69.5% living in cities as of 2023.

4,470,241: Estimated population (2024)
69.5%: Urban population (2023)
96.3%: Literacy rate (2024)
79.2 years: Life expectancy at birth (2024)
1.48%: Population growth rate (2024)

Economy

Panama's economy is classified as upper middle-income and is heavily influenced by the services sector, particularly through the Panama Canal, which facilitates international trade. The economy saw a real GDP growth rate of 7.4% in 2023, with projections of 2.9% for 2024. The country also relies on US dollar usage, which stabilizes its economic framework.

$164.484 billion: Estimated Real GDP (PPP) for 2024
6.6%: Unemployment rate (2024)
2.6%: Agriculture’s contribution to GDP (2024)
68.8%: Services sector’s share of GDP (2024)
21.8%: Population living below the poverty line (2021)

Government

Panama is a presidential republic with a democratic government structure. The president serves both as the head of state and head of government and is elected for a five-year term. The current president, José Raúl Mulino Quintero, took office on July 1, 2024. The government functions under a legal system based on civil law and is divided into three branches: executive, legislative, and judicial.

10: Number of provinces and 4 indigenous regions
71: Seats in the National Assembly
18 years: Minimum voting age
3 November 1903: Date of independence from Colombia

Military and Security

Panama has no regular military forces, with its security managed by the Ministry of Public Security, which oversees the National Police and other agencies focused on law enforcement and border security. The country emphasizes combating drug trafficking and ensuring national safety.

30,000: Estimated personnel in security forces (2025)
1.1%: Military expenditure as a percentage of GDP (2024)
SENAFRONT: National Border Service focused on border security

Energy

Panama's energy sector is increasingly reliant on renewable sources, with hydropower accounting for nearly half of its installed capacity. The country aims to ensure widespread electricity access, with a total electrification rate of 95% reported in 2022.

4.485 million kW: Installed electricity generating capacity (2023)
95%: Electrification rate of the total population (2022)
47.8%: Hydroelectricity contribution to total installed capacity (2023)

Environment

Panama faces environmental challenges such as water pollution, deforestation, and urban air pollution. The country has shown commitment to various international environmental agreements aimed at conservation and sustainable development.

62.3%: Forested land (2023)
1.472 million tons: Annual municipal solid waste generated (2024)
14.2%: Percentage of municipal solid waste recycled (2022)

Transportation

The transportation infrastructure in Panama includes a network of roads, railways, and ports facilitating trade and movement. The Panama Canal remains a critical asset for maritime commerce, with the country operating several key ports.

77: Number of airports (2025)
12: Total ports (2024)
8,174: Total merchant marine vessels (2023)

Communications

Panama has a developing communications network, with high mobile cellular penetration and a significant percentage of the population accessing the internet. Broadcasting services include numerous privately owned TV networks and radio stations.

78%: Internet user penetration (2023)
6.98 million: Mobile cellular subscriptions (2023)
811,000: Fixed-line telephone subscriptions (2023)

Key Metrics

Metric	Value	Note
Total Population	4,470,241	(2024 est.)
Area	75,420 sq km
Real GDP (PPP)	$164.484 billion	(2024 est.)
Unemployment Rate	6.6%	(2024 est.)
Electrification Rate	95%	(2022 est.)
Life Expectancy	79.2 years	(2024 est.)
Literacy Rate	96.3%	(2024 est.)
Forest Cover	62.3%	(2023 est.)
Military Expenditures	1.1% of GDP	(2024 est.)
Population Below Poverty Line	21.8%	(2021 est.)