Panama

In brief

Panama is a country in Central America. Its capital is Panama City. With 4.6 million inhabitants in 2025, it ranks 127th in the world by population, out of the 195 countries recognised by the UN. Its area is 75,417 km². It shares land borders with Colombia and Costa Rica.

GDP per capita stands at $19,790 (2025), 58th in the world. Life expectancy at birth is 79.8 years (2024). 66% of the population lives in cities.

History of Panama

In 1513 Vasco Núñez de Balboa crossed the isthmus and became the first European to see the Pacific from the Americas. Panama City, founded in 1519, became a staging post for Spanish silver. Joined to Colombia after independence, Panama broke away on 3 November 1903 with US support; the United States completed the canal in 1914 after the French failure. After the 1989 US intervention against General Noriega, the canal was handed over to Panama on 31 December 1999; it was widened in 2016.

Geography of Panama

The S-shaped Isthmus of Panama links Central and South America, between the Caribbean Sea and the Pacific. The canal crosses it for about 80 km. In the east, the Darién forest interrupts the Pan-American Highway. Volcán Barú (3,474 m) is the highest point.

Map of Panama

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Flag of Panama

The flag of Panama is red, white and blue. Its official proportions are 2:3 (height to width).

• White48%
• Red26%
• Blue26%

Share of the flag’s surface taken by each colour.

What the flag stands for

Divided into four quarters: two white ones bearing a blue and a red star, one blue and one red. Blue and red represent the two main parties of the time, Conservative and Liberal, and white peace between them; the blue star stands for honesty, the red star for the authority of the law.

Sources: Wikipedia, articles “Panama” and “Flag of Panama”.

See also: flags with a star.

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Fact file

Economy and society