Economic summary:GDP/PPP (2007
est.): $29.14 billion; per capita $9,000. Real growth rate:
7.8%. Inflation: 5.1%. Unemployment: 7.2%. Arable
land: 7.26%. Agriculture: bananas, rice, corn, coffee,
sugarcane, vegetables; livestock; shrimp. Labor force: 1.47
million; note: shortage of skilled labor, but an oversupply of
unskilled labor (2007 est.); agriculture 15%, industry 18%, services
67% (2006 est.). Industries: construction, brewing, cement
and other construction materials, sugar milling. Natural
resources: copper, mahogany forests, shrimp, hydropower.
Exports: $9.662 billion f.o.b.; note - includes the Colon
Free Zone (2007 est.): bananas, shrimp, sugar, coffee, clothing.
Imports: $12.1 billion f.o.b. (includes the Colon Free Zone)
(2007 est.): capital goods, foodstuffs, consumer goods, chemicals.
Major trading partners: U.S., Sweden, Spain, Netherlands,
Costa Rica, Netherlands Antilles, Japan, Mexico, Colombia
(2004).
Communications: Telephones: main lines
in use: 432,900 (2006); mobile cellular: 1.694 million (2005).
Radio broadcast stations: AM 80, FM 44, shortwave 0 (1998).
Radios: 815,000 (1997). Television broadcast stations:
38 (including repeaters) (1998). Televisions: 510,000 (1997).
Internet Service Providers (ISPs): 7,078 (2007). Internet
users: 220,000 (2006).
Transportation: Railways: total: 355 km
(2002). Highways: total 11,643 km; paved: 4,028 km; unpaved:
7,615 km (2000) . Waterways: 882 km navigable by shallow
draft vessels; 82 km Panama Canal. Ports and harbors: Balboa,
Cristobal, Coco Solo, Manzanillo (part of Colon area), Vacamonte.
Airports: 116 (2007).
The southernmost of the Central American nations, Panama is south of
Costa Rica and north of Colombia. The Panama Canal bisects the isthmus at
its narrowest and lowest point, allowing passage from the Caribbean Sea to
the Pacific Ocean. Panama is slightly smaller than South Carolina. It is
marked by a chain of mountains in the west, moderate hills in the
interior, and a low range on the east coast. There are extensive forests
in the fertile Caribbean area.
Government
Constitutional democracy.
History
Explored by Columbus in 1502 and by Balboa in 1513, Panama was the
principal shipping point to and from South and Central America in colonial
days. In 1821, when Central America revolted against Spain, Panama joined
Colombia, which had already declared its independence. For the next 82
years, Panama attempted unsuccessfully to break away from Colombia.
Between 1850 and 1900 Panama had 40 administrations, 50 riots, 5 attempted
secessions, and 13 U.S. interventions. After a U.S. proposal for canal
rights over the narrow isthmus was rejected by Colombia, Panama proclaimed
its independence with U.S. backing in 1903.
For canal rights in perpetuity, the U.S. paid Panama $10 million and
agreed to pay $250,000 each year, which was increased to $430,000 in 1933
and to $1,930,000 in 1955. In exchange, the U.S. got the Canal Zone—a
10-mile-wide strip across the isthmus—and considerable influence in
Panama's affairs. On Sept. 7, 1977, Gen. Omar Torrijos Herrera and
President Jimmy Carter signed treaties giving Panama gradual control of
the canal, phasing out U.S. military bases, and guaranteeing the canal's
neutrality.
Nicolas Ardito Barletta, Panama's first directly elected president in
16 years, was inaugurated on Oct. 11, 1984, for a five-year term. He was a
puppet of strongman Gen. Manuel Noriega, a former CIA operative and head
of the secret police. Noriega replaced Barletta with vice president Eric
Arturo Delvalle a year later. In 1988, Noriega was indicted in the U.S.
for drug trafficking, but when Delvalle attempted to fire him, Noriega
forced the national assembly to replace Delvalle with Manuel Solis Palma.
In Dec. 1989, the assembly named Noriega “maximum leader” and declared the
U.S. and Panama to be in a state of war. In Dec. 1989, 24,000 U.S. troops
seized control of Panama City in an attempt to capture Noriega after a
U.S. soldier was killed in Panama. On Jan. 3, 1990, Noriega surrendered
himself to U.S. custody and was transported to Miami, where he was later
convicted of drug trafficking. Guillermo Endara, who probably would have
won an election suppressed earlier by Noriega, was installed as
president.
On Dec. 31, 1999, the U.S. formally handed over control of the Panama
Canal to Panama. Meanwhile, Colombian rebels and paramilitary forces have
made periodic incursions into Panamanian territory, raising security
concerns. Panama has also faced increased drug and arms smuggling.
In May 2004 presidential elections, Martín Torrijos Herrera, the son of
former dictator Omar Torrijos, won 47.5% of the vote. He took office in
September.
Panamanians approved a plan to expand the Panama Canal in 2006. It will likely double the canal’s capacity and is expected to be completed in 2014-2015.
