Panama Area Guide

The research below will allow you to gain general and practical knowledge on Panama and how to get there.

Situated on the southernmost point of Central America, Panama is a slim isthmus of land connecting the north and south part of America. It borders Costa Rica to the north-west and Colombia to the south-east and boasts superb Caribbean and Pacific shores. Panama is divided by a central spine of hills and mountains, and its highlands at the border with Colombia form part of the extensive South American Andes.

The weather in Panama is normally hot and humid, abated by sea breezes and/or air conditioning in most places. During Panama’s high tourist season running from mid December to mid April, the climate is dry. Rainfall for the rest of the year could fall daily at an average of one inch a day, while the variance in average temperature remains small, with temperatures reaching approx 29°C in the dry season and approximately 26°C in the wet season.

Economically, Panama now enjoys huge success largely due to its key geographic location: Panama is of significant importance in Latin America, in terms of trade and commerce and tourism and this is supported by booming financial, banking and related service industries. Handover of the Canal by the US in 1999 led to a great increase in construction projects, both along the Canal and in the City itself. The Colon Free Trade Zone is responsible for the high levels of Panamanian trade, making it the largest free trade zone in the Western Hemisphere.

The Panamanian government has introduced a great number of fiscal reforms under the Martin Torrijos administration, making Panama even more attractive as a location for private and corporate foreign investors seeking a highly tax efficient environment in which to operate.

The Panamanian currency is the Balboa. It is fixed at parity with the US Dollar and has minted Panamanian coins but US Dollars are used for the nation’s paper currency.

Panama’s population is currently just over 3 million, 70% of which is of mixed European (Spanish) and Latin American. Panamanian culture is based predominantly on Caribbean and Spanish customs, with Spanish as the official language. About 8% of the population speaks Creole, but English is widely spoken, particularly amongst the professional business and expatriate communities.

Information Required When Travelling to Panama