Balboa, U.S. dollar (PAB, USD)
Facts about Panama
Panama, officially the Republic of Panama, is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The capital is Panama City. Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Nueva Granada, Ecuador, and Venezuela – named the Republic of Gran Colombia. When the latter dissolved in 1830, Panama and Nueva Granada stayed joined. Nueva Granada later became the Republic of Colombia.
With the backing of the United States, Panama seceded from Colombia in 1903, allowing the Panama Canal to be 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 United States to Panama by the end of the century.
Revenue from Canal tolls represent today a significant portion of Panama's GDP. Panama has the third or fourth largest economy in Central America and it is also the fastest growing economy and the largest per capita consumer in Central America. In 2010 Panama ranked 4th among Latin American countries in terms of the Human Development Index, and 54th in the world in 2010. As of 2010, Panama is the second most competitive economy in Latin America as well according to the Global Competitiveness Index from the World Economic Forum (WEF). Panama has the largest rainforest in the Western Hemisphere outside the Amazon Basin and its jungle is home to an abundance of tropical plants, animals and birds – some of them to be found nowhere else in the world.