Panama City - The Capital of Panama

Population
1,938,000
Language
Spanish
Continent
North America
Since
1519
Eco Ranking
48/195

Source: Environmental Performance Index 2024.

About Panama City

Founded by Spanish colonizers in 1519, Panama City is one of the oldest continuously inhabited European-established settlements on the Pacific coast of the Americas. Its political history is inseparable from its geography: the narrow isthmus connecting North and South America made it a transit and control point for colonial trade and, later, global commerce. Panama was part of the Viceroyalty of New Granada and subsequently the Republic of Colombia after independence. In 1903, Panama declared independence from Colombia with direct US diplomatic and military support, motivated almost entirely by the American intention to build a canal across the isthmus. The Hay-Bunau-Varilla Treaty, signed just days after independence, granted the US control over a 16-kilometer-wide Canal Zone in perpetuity. The Panama Canal opened in 1914 and remained under US control until December 31, 1999, when full sovereignty was transferred to Panama under the 1977 Torrijos-Carter Treaties. Panama City is home to the Panama Canal Authority, which operates and administers the canal. The city also serves as a regional financial and logistics hub. Panama's 1989 US military invasion to remove dictator Manuel Noriega, Operation Just Cause, left significant physical and political marks on the capital.

About Panama

Panama is a presidential republic with a unicameral National Assembly. The president serves as both head of state and government and is elected for five-year terms with no immediate re-election. Panama uses the US dollar as its currency alongside the Balboa, and its economy is oriented around the canal, logistics, and financial services. The 1977 Torrijos-Carter Treaties defined the framework for canal handover.

View Panama City on the map

View Panama City - The Capital of Panama on the map

Flight time from Panama City to other capitals

CityDistance (km)Flight Time
Washington, D.C.33003h 53m
Buenos Aires53006h 14m
London850010h 0m
Paris870010h 14m
Rome950011h 11m
Cape Town1130013h 18m
Tokyo1360016h 0m
Abu Dhabi1380016h 14m
Canberra1430016h 49m
Singapore1880022h 7m

Capitals with similar population to Panama City

CityPopulation
Damascus2,079,000
Minsk1,982,444
Panama City1,938,000
Vienna1,911,191
Bucharest1,883,425
Kuala Lumpur1,808,000
Warsaw1,790,658

Capitals with similar eco ranking to Panama City

CityEco Rank
Bridgetown46
Brasília47
Singapore47
Panama City48
Havana49
Port of Spain49
Abu Dhabi51

Source: Environmental Performance Index 2024.

Frequently Asked Questions

  • Why did Panama separate from Colombia?

    Panama declared independence from Colombia in November 1903, backed by the United States, which wanted to build a canal across the isthmus. The Colombian Senate had rejected the Hay-Herrán Treaty that would have granted the US canal rights, prompting the US to support Panamanian separatists and immediately recognize the new republic.

  • When did the US hand over control of the Panama Canal?

    The United States transferred full sovereignty over the Panama Canal to Panama on December 31, 1999, under the terms of the Torrijos-Carter Treaties signed in 1977. The canal zone had been under US control since the canal opened in 1914.

  • Why is Panama City significant beyond being a national capital?

    Panama City hosts the Panama Canal Authority, which administers one of the world's most strategically important waterways. Approximately 5% of global maritime trade passes through the Panama Canal. The city is also a major regional financial center and logistics hub for Latin America.

  • What was Operation Just Cause?

    Operation Just Cause was the US military invasion of Panama in December 1989, launched to remove the de facto ruler General Manuel Noriega. The operation resulted in Noriega's capture and extradition to the United States, where he was convicted of drug trafficking. The invasion killed hundreds of Panamanian civilians and military personnel.

  • Is Panama City the oldest city in the Americas on the Pacific coast?

    Panama City, founded in 1519, is considered the oldest continuously inhabited European-founded city on the Pacific coast of the Americas. The original settlement, now called Panama Viejo, was destroyed in 1671 during a pirate attack and rebuilt at its current location shortly after.

Sights and landmarks

Panama Viejo, the ruins of the original city from 1519 destroyed by the Welsh pirate Henry Morgan in 1671, is on the UNESCO World Heritage List, along with the seventeenth-century colonial quarter Casco Viejo with its pastel-coloured facades, the Catedral Metropolitana and the Iglesia de San José with its golden altar. The tallest building is the F&F Tower (242 metres), part of a skyline compared to that of Miami or Hong Kong. The Miraflores Locks at the Pacific entrance to the canal have a visitor centre showing ships being lifted six metres. The BioMuseo from 2014, designed by Frank Gehry on the Amador Causeway, celebrates Panama's biological diversity with striking geometric colour panels.

Climate and best time to visit

Panama City has a tropical savanna climate (Aw) with year-round high temperatures between 29 and 32 degrees Celsius and high humidity. The rainy season runs from May to November, with October as the wettest month; annual rainfall is around 1,900 millimetres. The dry season, December to April, with persistent northerly trade winds, is the preferred travel time. Panama lies outside the Atlantic hurricane belt and is rarely directly struck by cyclones, a significant advantage over islands further north. The Caribbean side of the country is considerably wetter than the Pacific side, a difference the canal cleverly exploits via the Gatún Lake water supply.

Culture and customs

Panama City is a cultural crossroads between North and South America, with a strong Caribbean influence via Afro-Antillean migrants who worked on the canal in the early twentieth century. The official language is Spanish, but English is widely spoken in business circles, and the indigenous Guna from the Guna Yala islands maintain their language and mola textiles. Typical dishes include sancocho (chicken soup), arroz con pollo, ceviche and ropa vieja. Reggaetón and local tamborito and típico music compete in the nightlife. Carnaval in February, especially in Las Tablas, is a national highlight. Religiously, Roman Catholicism is dominant; the image of Christ of Esquipulas in Portobelo is an important pilgrimage destination.

Economy

Panama City is Latin America's most important financial hub after São Paulo, with more than 80 international banks in the Punta Pacífica district. The Panama Canal Authority manages the canal, widened in 2016, which handles around 6 percent of world trade and generates more than 3 billion dollars in annual revenues. The Colón Free Trade Zone on the Caribbean side is the largest free trade zone in the Western Hemisphere. The country has used the US dollar as legal tender since 1904 alongside the Balboa. Tocumen International Airport is a major Latin American connecting hub with more than 100 destinations. Construction, real estate and ship registration (Panama holds the world's largest merchant fleet registration) are other key sectors.
Panama City, capital of Panama
Panama City, capital of Panama

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