Location: Central America, bordering both the Caribbean Sea and the North Pacific Ocean between Colombia and Costa Rica. Panama is a land bridge, connecting North and South America. It controls the Panama Canal that links North Atlantic Ocean via the Caribbean Sea with the North Pacific Ocean.
Land Area: 78,200 sq km (30,193 sq. miles)
Coastline: 2,490 km (1,548 miles)
Highest Point: Volcan de Chiriqui 3,475 m (11,398 ft)
Lowest Point: Pacific Ocean 0 m (0 ft)
Notable Landmarks: Take a peek...

Panama's dollarised economy rests primarily on a well-developed services sector that accounts for three-fourths of the Gross Domestic Product. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry and tourism. A slump in the Colon Free Zone and agricultural exports, the global slowdown and the withdrawal of U. S. military forces held back economic growth in 2000 to 2003. The government has been backing public works programs, tax reforms, new regional trade agreements, and development of tourism in order to stimulate growth. Unemployment remains at an unacceptably high level.

Gross Domestic Product (GDP): $18.78 Billion (2003 est.)
GDP Per Capita: $6,300 (2003 est.)
Number of Workers: 1.19 million (2003 est.)
Unemployment Rate: 13.8% (2003 est.)
Industries: Construction, petroleum refining, brewing, cement and other construction materials, sugar milling.
Currency: U.S. Dollar

Type of Government: Republic
Head of State: President Martin Torrijos Espino (since 1 September 2004)
Head of Government: President Martin Torrijos (since 1 September 2004)
Capital City: Panama City
Legal Age to Vote: 18
Flag Design: Divided into four, equal rectangles; the top quadrants are white (hoist side) with 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.
Official Language: Spanish (official) English 14
Religions: Roman Catholic, 85 percent; Protestant, 15 percent.

With U. S. backing, Panama seceded from Colombia in 1903 and promptly signed a treaty with the U. S., allowing for the construction of a canal and U. S. sovereignty over a strip of land on either side of a the structure (the Panama Canal Zone). The Panama Canal was built by the U. S. Army Corps of Engineers between 1904 and 1914. On September 7, 1977, an agreement was signed for the complete transfer of the Canal from the U. S. to Panama by the end of 1999. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the intervening years. With U. S. help, Dictator Manuel Noriega was deposed in 1989. The entire Panama Canal, the area supporting the Canal, and remaining U. S. military bases were turned over to Panama on December 31, 1999.