Panama Map

Panama , officially the Republic of Panama, 29,760 square miles, occupies the Isthmus of Panama which connects Central and South America. To the west and east of Panama, respectively, are Costa Rica and Colombia. The Panama Canal bisects the country. The capital and largest city is Panama City.

Land and People

In Panama's west are rugged mountains (Volcán Barú is 11,401 ft high) which yield in the middle of the country to low hills; there is a low mountain range in the east. Lowlands line both the Caribbean and Pacific coasts, and there are numerous offshore islands. Panama's climate is tropical with abundant rainfall. Colón, a major port, is the second largest city; David is the third largest city. More than half the population is urban. The population is primarily mestizo, although the building of the canal brought people from the West Indies and other parts of the world, many of whom intermarried with the indigenous population. Spanish is the official language; many Panamanians also speak English

Economy

Panama's economy has become largely service-based, with banking, tourism, and commerce playing important roles. Only about a quarter of the land is used for agriculture. On the upland savannas cattle are grazed and crops such as rice, sugarcane, cocoa, and coffee are grown. Bananas are grown on the Pacific coast. The country has various light industries. The Colón Free Zone, established in 1953, is a center for foreign investment in manufacturing.

Bananas are the leading export, followed by shrimp and fish products, sugar, clothing, and coffee.

Government

Panama is a constitutional republic. Executive power is held by the president, who is popularly elected for a five-year term and cannot serve two consecutive terms. The unicameral Legislative Assembly has 72 members who are also elected for five years. Administratively the country is divided into nine provinces, plus three territories for indigenous people.