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1. Facts at a Glance
Panama offers some of the finest snorkeling, birding and deep-sea fishing in the world, so it's hard to figure out why travelers tend to steer clear of this country or just whiz through on their way to or from South America. It may have something to do with the fact that Panama is known internationally for its canal, the 1989 US invasion and the name it donated to a style of headgear, but this does it no justice.
The reality is a proud prosperous nation that honors its seven Indian tribes and its rich Spanish legacy and embraces visitors so enthusiastically that it's difficult to leave without feeling that you're in on a secret that the rest of the traveling world will one day uncover.
Full country name Republic of Panama
Area 78,000 sq km (30,420 sq mi)
Population 2,611,000 (growth rate 2%)
Capital city Panama City (pop 610,000)
People 62% mestizo, 14% African descent, 10% Spanish descent, 5% mulatto, 5% Indian
Language Spanish, English and Indian languages
Religion 84% Roman Catholic, 5% Protestant, 5% Islamic
Government Democracy
President Mireya Moscoso
 
2. Economic Profile
GDP US$8 billion
GDP per head US$2400
Inflation 1.5%
Major industries Banking, shipping and agriculture
Major trading partners USA, Germany, Costa Rica
 
3. Panama Canal
The Canal is both an engineering marvel and one of the most significant waterways on earth. Stretching 80km (50mi) from Panama City on the Pacific coast to Colon on the Atlantic side, it provides passage for over 12,000 oceangoing vessels per year. Seeing a huge ship nudge its way through the narrow canal, with vast tracts of virgin jungle on both sides, is an unforgettable sight. The easiest and best way to visit the Canal is to go to the Miraflores Locks, on the northeastern fringe of Panama City, where a platform offers visitors a good view of the locks in operation. There's also a museum with a model and a film about the Canal. Boats leave Balboa, a western suburb of Panama City, for a five-hour tour through the locks to Miraflores Lake.