Location: Middle 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: 78,200 sq km
land: 75,990 sq km
water: 2,210 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: 200 nm

Climate: tropical; 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 de Chiriqui 3,475 m

Natural resources: copper, mahogany forests, shrimp

Land use:
arable land: 7%
permanent crops: 2%
permanent pastures: 20%
forests and woodland: 44%
other: 27% (1993 est.)

Irrigated land: 320 sq km (1993 est.)

Natural hazards: NA

Environment—current issues: water pollution from agricultural runoff threatens fishery resources; deforestation of tropical rain forest; land degradation

Environment—international agreements:
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Nuclear Test Ban, 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

Population: 2,778,526 (July 1999 est.)

Age structure:
0-14 years: 32% (male 446,792; female 429,811)
15-64 years: 63% (male 882,541; female 859,455)
65 years and over: 5% (male 76,648; female 83,279) (1999 est.)

Population growth rate: 1.53% (1999 est.)

Birth rate: 21.69 births/1,000 population (1999 est.)

Death rate: 5.14 deaths/1,000 population (1999 est.)

Net migration rate: -1.22 migrant(s)/1,000 population (1999 est.)

Sex ratio:
at birth: 1.04 male(s)/female
under 15 years: 1.04 male(s)/female
15-64 years: 1.03 male(s)/female
65 years and over: 0.92 male(s)/female
total population: 1.02 male(s)/female (1999 est.)

Infant mortality rate: 23.35 deaths/1,000 live births (1999 est.)

Life expectancy at birth:
total population: 74.66 years
male: 71.91 years
female: 77.51 years (1999 est.)

Total fertility rate: 2.54 children born/woman (1999 est.)

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: 90.8%
male: 91.4%
female: 90.2% (1995 est.)

Country name:
conventional long form: Republic of Panama
conventional short form: Panama
local long form: Republica de Panama
local short form: Panama

Data code: PM

Government type: constitutional republic

Capital: Panama

Administrative divisions: 9 provinces (provincias, singular—provincia) and 2 territories* (comarca); Bocas del Toro, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos, Panama, San Blas*, Veraguas, and a new, as yet unnamed territory* or comarca created 7 March 1997 when President PEREZ BALLADARES signed a bill designating a reserve stretched across three provinces

Independence: 3 November 1903 (from Colombia; became independent from Spain 28 November 1821)

National holiday: Independence Day, 3 November (1903)

Constitution: 11 October 1972; major reforms adopted April 1983

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 Ernesto PEREZ BALLADARES (since 1 September 1994); First Vice President Tomas ALTAMIRANO Duque (since 1 September 1994); Second Vice President Felipe VIRZI (since 1 September 1994); note—the president is both the chief of state and head of government
head of government: President Ernesto PEREZ BALLADARES (since 1 September 1994); First Vice President Tomas ALTAMIRANO Duque (since 1 September 1994); Second Vice President Felipe VIRZI (since 1 September 1994); note—the president is both the chief of state and head of government
cabinet: Cabinet appointed by the president
elections: president and vice presidents elected on the same ticket by popular vote for five-year terms; election last held 8 May 1994 (next to be held 2 May 1999)
election results: Ernesto PEREZ BALLADARES elected president; percent of vote—Ernesto PEREZ BALLADARES (PRD) 33%, Mireya MOSCOSO DE GRUBER (PA) 29%, Ruben BLADES (MPE) 17%, Ruben Dario CARLES (MOLIRENA) 16%

Legislative branch: unicameral Legislative Assembly or Asamblea Legislativa (72 seats; members are elected by popular vote to serve five-year terms)
elections: last held 8 May 1994 (next to be held 2 May 1999)
election results: percent of vote by party—NA; seats by party—PRD 32, PS 4, PALA 1, PA 14, MPE 6, MOLIRENA 4, PLA 3, PRC 3, PLN 2, PDC 1, UDI 1, MORENA 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 (Corte Suprema de Justicia), nine judges appointed for 10-year terms; five superior courts; three courts of appeal

Political parties and leaders:
governing coalition: Democratic Revolutionary Party or PRD [Gerardo GONZALEZ]; National Liberal Party or PLN [Raul ARANGO, founder]; Popular Nationalist Party [Jorge FLORES]
other parties: Solidarity Party or PS [Carlos CLEMENT]; Nationalist Republican Liberal Movement or MOLIRENA [Guillermo FORD]; Arnulfista Party or PA [Mireya MOSCOSO DE GRUBER]; Christian Democratic Party or PDC [Ruben AROSEMENA]; Papa Egoro Movement or MPE [Ruben BLADES]; Civic Renewal Party or PRC [Sandra ESCORCIA]; National Renovation Movement or MORENA [Pedro VALLARINO]; Authentic Liberal Party or PLA [leader NA]; Labor Party or PALA [leader NA]; Independent Democratic Union or UDI [leader NA]

Political pressure groups and leaders: National Council of Organized Workers or CONATO; National Council of Private Enterprise or CONEP; Panamanian Association of Business Executives or APEDE; National Civic Crusade; Chamber of Commerce; Panamanian Industrialists Society or SIP; Workers Confederation of the Republic of Panama or CTRP

International organization participation: CAN (associate), CCC, ECLAC, FAO, G-77, IADB, IAEA, IBRD, ICAO, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Inmarsat, Intelsat, Interpol, IOC, IOM, ISO, ITU, LAES, LAIA (observer), NAM, OAS, OPANAL, OPCW, PCA, RG, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WFTU, WHO, WIPO, WMO, WToO, WTrO

Diplomatic representation in the US:
chief of mission: Ambassador Eloy ALFARO de Alba
chancery: 2862 McGill Terrace NW, Washington, DC 20008
telephone: [1] (202) 483-1407
consulate(s) general: Atlanta, Houston, Miami, New Orleans, New York, Philadelphia, San Francisco, San Juan (Puerto Rico), Tampa

Diplomatic representation from the US:
chief of mission: Ambassador Simon FERRO
embassy: Avenida Balboa and Calle 38, Apartado 6959, Panama City 5
mailing address: American Embassy Panama, Unit 0945, APO AA 34002
telephone: [507] 227-1377
FAX: [507] 227-1964

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—overview: Because of its key geographic location, Panama's economy is service-based, heavily weighted toward banking, commerce, and tourism. Since taking office in 1994, President PEREZ BALLADARES has advanced an economic reform program designed to liberalize the trade regime, attract foreign investment, privatize state-owned enterprises, institute fiscal reform, and encourage job creation through labor code reform. The government privatized its two remaining ports along the Panama Canal in 1997 and approved the sale of the railroad in early 1998. It also plans to sell other assets, including the electric company. Panama joined the World Trade Organization (WTrO) and approved a tariff reduction that will give the country the lowest average tariff rates in Latin America. A banking reform law was approved by the legislature in early 1998. The most important sectors driving growth have been the Panama Canal and other shipping and port activities.

GDP: purchasing power parity—$19.9 billion (1998 est.)

GDP—real growth rate: 2.7% (1998 est.)

GDP—per capita: purchasing power parity—$7,300 (1998 est.)

GDP—composition by sector:
agriculture: 8%
industry: 18%
services: 74% (1997 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 0.5%
highest 10%: 42.5% (1991)

Inflation rate (consumer prices): 1.4% (1998)

Labor force: 1.044 million (1997 est.)
note: shortage of skilled labor, but an oversupply of unskilled labor

Labor force—by occupation: government and community services 31.8%, agriculture, hunting, and fishing 26.8%, commerce, restaurants, and hotels 16.4%, manufacturing and mining 9.4%, construction 3.2%, transportation and communications 6.2%, finance, insurance, and real estate 4.3%

Unemployment rate: 13.1% (1997 est.)

Budget:
revenues: $2.4 billion
expenditures: $2.4 billion, including capital expenditures of $341 million (1997 est.)

Industries: construction, petroleum refining, brewing, cement and other construction materials, sugar milling

Industrial production growth rate: 0.4% (1995 est.)

Electricity—production: 3.55 billion kWh (1996)

Electricity—production by source:
fossil fuel: 29.58%
hydro: 70.42%
nuclear: 0%
other: 0% (1996)

Electricity—consumption: 3.488 billion kWh (1996)

Electricity—exports: 157 million kWh (1996)

Electricity—imports: 95 million kWh (1996)

Agriculture—products: bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp

Exports: $6.68 billion (f.o.b., 1997)

Exports—commodities: bananas 43%, shrimp 11%, sugar 4%, clothing 5%, coffee 2%

Exports—partners: US 37%, EU, Central America and Caribbean

Imports: $7.38 billion (f.o.b., 1997)

Imports—commodities: capital goods 21%, crude oil 11%, foodstuffs 9%, consumer goods, chemicals

Imports—partners: US 48%, EU, Central America and Caribbean, Japan

Debt—external: $7.26 billion (1996 est.)

Economic aid—recipient: $197.1 million (1995)

Currency: 1 balboa (B) = 100 centesimos

Exchange rates: balboas (B) per US$1—1.000 (fixed rate)

Fiscal year: calendar year

Telephones: 273,000 (1991 est.)

Telephone system: domestic and international facilities well developed
domestic: NA
international: 1 coaxial submarine cable; satellite earth stations—2 Intelsat (Atlantic Ocean); connected to the Central American Microwave System

Radio broadcast stations: AM 91, FM 0, shortwave 0

Radios: 564,000 (1992 est.)

Television broadcast stations: 9 (in addition, there are 17 repeaters) (1997)

Televisions: 420,000 (1992 est.)

Railways:
total: 355 km
broad gauge: 76 km 1.524-m gauge
narrow gauge: 279 km 0.914-m gauge

Highways:
total: 11,100 km
paved: 3,730 km (including 30 km of expressways)
unpaved: 7,370 km (1996 est.)

Waterways: 800 km navigable by shallow draft vessels; 82 km Panama Canal

Pipelines: crude oil 130 km

Ports and harbors: Balboa, Cristobal, Coco Solo, Manzanillo (part of Colon area), Vacamonte

Merchant marine:
total: 4,632 ships (1,000 GRT or over) totaling 98,433,972 GRT/149,800,820 DWT
ships by type: bulk 1,335, cargo 1,028, chemical tanker 288, combination bulk 68, combination ore/oil 15, container 507, liquefied gas tanker 176, livestock carrier 9, multifunction large-load carrier 6, oil tanker 498, passenger 41, passenger-cargo 5, railcar carrier 2, refrigerated cargo 312, roll-on/roll-off cargo 102, short-sea passenger 40, specialized tanker 23, vehicle carrier 177
note: a flag of convenience registry; includes ships from 71 countries among which are Japan 1,262, Greece 378, Hong Kong 244, South Korea 259, Taiwan 229, China 193, Singapore 103, US 116, Switzerland 78, and Indonesia 53 (1998 est.)

Airports: 110 (1998 est.)

Airports—with paved runways:
total: 43
over 3,047 m: 1
2,438 to 3,047 m: 1
1,524 to 2,437 m: 5
914 to 1,523 m: 14
under 914 m: 22 (1998 est.)

Airports—with unpaved runways:
total: 67
914 to 1,523 m: 17
under 914 m: 50 (1998 est.)

Military branches: an amendment to the Constitution abolished the armed forces, but there are security forces (Panamanian Public Forces or PPF includes the National Police, National Maritime Service, and National Air Service)

Military manpower—availability:
males age 15-49: 746,910 (1999 est.)

Military manpower—fit for military service:
males age 15-49: 511,866 (1999 est.)

Military expenditures—dollar figure: $132 million (1997)

Military expenditures—percent of GDP: 1.6% (1997)

Military—note: in October 1994, a month after President PEREZ BALLADARES assumed office, Panama's Legislative Assembly approved a constitutional amendment prohibiting the creation of a standing military force, but allowing the temporary establishment of a "special police force" to counter acts of "external aggression"

Disputes—international: none

Illicit drugs: major cocaine transshipment point and major drug-money-laundering center; no recent signs of coca cultivation; monitoring of financial transactions is improving

Source: 1999 CIA World Factbook