Panama, officially the Republic of Panama, is a country in Central America that connects North and South America. It shares borders with Costa Rica to the west and Colombia to the southeast, with coastlines along both the Caribbean Sea and the Pacific Ocean. The capital and largest city is Panama City.
Geography and Climate
Panama’s landscape is dominated by a central spine of mountains and hills, including the Cordillera de Talamanca and the Serranía de Tabasará. The highest point is Volcán Barú, which rises to 3,475 meters (11,401 feet). The country has a tropical climate with high temperatures and humidity year-round, experiencing a rainy season from April to December.
Economy
The Panama Canal, an artificial waterway connecting the Caribbean Sea with the Pacific Ocean, is a significant economic asset, facilitating international maritime trade. Revenue from canal tolls contributes notably to Panama’s GDP. The economy also benefits from commerce, banking, and tourism sectors. Panama is considered a high-income economy, with a Human Development Index ranking of 57th globally in 2019.
Recent Developments
In recent years, Panama has faced various economic and political challenges. A notable development involves BlackRock’s $22.8 billion agreement to acquire a majority stake in Panama Ports Company from CK Hutchison. This deal has encountered obstacles, including scrutiny from Panama’s Maritime Authority over legal and financial documentation, and criticism from China regarding the sale. Chinese state media have labeled the transaction as “power politics,” and shares in CK Hutchison have declined by over 6%.
Biodiversity
Panama boasts rich biodiversity, with tropical rainforests covering nearly 40% of its land area. The Soberanía National Park is renowned for birdwatching, hosting over 525 bird species, as well as various mammals, reptiles, and amphibians. The country’s varied ecosystems support a wide range of plant and animal life, some unique to the region.