By Angel hill and Brenna kelly ; )


    Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Ecuador, and Venezuela - named the Republic of Gran Colombia. When the latter dissolved in 1830, Panama remained part of Colombia. With US backing, Panama seceded from Colombia in 1903 and promptly signed a treaty with the US allowing for the construction of a canal and US sovereignty over a strip of land on either side of the structure (the Panama Canal Zone). The Panama Canal was built by the US Army Corps of Engineers between 1904 and 1914. In 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of the century. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the subsequent decades. With US help, dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the area supporting the Canal, and remaining US military bases were transferred to Panama by the end of 1999. In October 2006, Panamanians approved an ambitious plan (estimated to cost $5.3 billion) to expand the Canal. The project, which began in 2007 and could double the Canal's capacity, is expected to be completed in 2015.

the gdp and gdp per capitel

GDP - per capita (PPP):

$15,900 (2012 est.)

country comparison to the world: 86

$14,600 (2011 est.)

$13,400 (2010 est.)

note: data are in 2012 US dollars


$36.25 billion (2012 est.)

Language,type of government


Spanish (official), English 14%

note: many Panamanians are bilingual

Government type:

constitutional democracy

Name of the leader capital

chief of state: President Ricardo MARTINELLI Berrocal (since 1 July 2009)


name: Panama City

major geograpical features

strategic location on eastern end of isthmus forming land bridge connecting North and South America; controls Panama Canal that links North Atlantic Ocean via Caribbean Sea with North Pacific Ocean