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The International Monetary Fund applauds the country's diversified economy and predicts it to have one of the strongest GDP growth rates in the world for the next several years. The canal, which is being expanded, continues to drive Panama's service-based economy and remains one of the most important transportation links in the world.


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In addition to the country's strong economic base, Panama's physical infrastructure, including modern hospitals, airports and roads, is much more developed than its Central American neighbors. Panama has a large expatriate community; about 25, US citizens live in the country. It is worth spending some time reading up on Panama and communicating with locals, expats, and fellow travelers before arriving in the country.


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  4. Consider joining some local forums or blogs for expats or the Central America Forum. Many of the local blogs can give you the most current information on: floods, earthquakes, trail closings, and the best restaurants. Tropical maritime; hot, humid, cloudy; prolonged rainy season, called winter or invierno May to November ; short dry season, called summer or verano December to April.

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    The most popular time to travel to Panama is December through March, when lack of humidity and nearly zero percent chance of rain make it ideal for travellers. During most of the rainy season, mornings and early afternoons are usually sunny while late afternoons and evenings have intermittent rainfall. Most areas are quite warm, but a few places, such as Boquete , Cerro Punta and El Valle can get a little chilly at night. Natural hazards : Occasional severe storms and forest fires in the remote Darien area.

    Hurricane-strong winds are only a very small possibility in Panama. Because of its geographic position, it is very unlikely that Panama could be in the path of any hurricane, unlike the other Central American countries. On a clear day they say you can see both oceans from the peak. Panama was colonized mainly by the Spanish. Scotland, which was an independent country at the time, made a short-lived attempt to colonize it in the late 17th and early 18th century.

    It failed so spectacularly that it caused the bankruptcy of the Scottish treasury and - as a consequence of that - the union with England that continues to this day. For most of its colonial history, Panama was administered as part of Colombia. It gained independence from Spain as part of "Gran Colombia", which later broke apart into several smaller countries, most of them today flying blue red yellow flags.

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    The last part to break away was Panama. With US backing, Panama seceded from Colombia in 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.

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    The treaty became infamous as "the treaty no Panamanian ever signed". It was largely repealed by the Carter administration, which promised to return the Canal Zone by which President Clinton did. Panama's domestic and especially foreign policies have historically been dependent on the opinion of the administration in Washington.

    No openly anti-US president of Panama has been able to cling to power for long. On 7 September , an agreement was signed for the complete transfer of the canal from the US to Panama by the end of Certain portions of the zone and increasing responsibility over the canal were turned over in the intervening years. The entire Panama Canal, the area supporting the canal, and remaining US military bases were turned over to Panama by or on 31 December Panama has a history of military strongmen ruling with little or no regard for the law and the constitution, the last of which was Manuel "Pineapple Face" Noriega.

    Noriega died in Panamanian custody after being deposed by a US military intervention with the name "Just Cause" the just cause in question being an end to his drug smuggling regime. Noriega had been a de facto client of the US for some time before that. After this upheaval, Panama decided to follow in the footsteps of its northern neighbor, Costa Rica, and abolished its military.

    Today Panama is nominally even richer than peaceful "Switzerland of Central America" Costa Rica to the North and Colombia to the South and thus draws quite a few immigrants. However, much of that wealth is dependent on the canal and issues such as inequality and corruption that have hampered other parts of Latin America are not unknown in Panama, either. This usually also applies to people of other nationalities India, for example , if they have a residence permit issued by any of the above countries. However, it is advisable to check with closest representation of Panama embassy near your place of residence.

    Citizens from these countries can apply for an extension for up to another 30, 60 or 90 days. Petitions are approved or denied on a case-by-case basis. Immigration recommends you apply at least a week before your time is up. For more information about extending your stay in Panama please read on or click here. They can always also leave the country for 30 days Costa Rica is right next to Bocas del Toro and Boquete so it's easily done and then come back and get days more.

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    Citizens of China with an endorsed "public of affairs" passport do not require a visa for days also. Holders of diplomatic, official or service passports of China, Cuba, Haiti and Philippines do not require a visa. In practice, border officials may be lax about checking these requirements for travelers coming from the EU, US or other developed countries.

    Local travelers and tourists can also fly in and out of Bocas del Toro via Costa Rica. The country has more private airstrips per square mile than any other country in the world, and it is feasible for the adventurous private pilot to fly to one of them, either directly or through country hopping through Central America. Many of the remote interior regions of the country are best accessed by private plane, although a combination of hiking and canoeing can get you to most places, too. If you are flying a private aircraft into Panama, it is important to verify where you can clear customs and immigration--not all airstrips are equipped to clear you.

    It is very easy to accidentally drive across the border without realizing it. The various offices at the border are randomly scattered throughout the bordertown, and you can do quite a bit of trekking while finding them, as they don't look distinct from the surrounding buildings in any way. This is one crossing where it is definitely worth your money to hire a "tramitator", or helper, to assist you through the stations, if you do not speak Spanish.

    The Rio Sereno crossing sees very little traffic, so make sure all your papers are in order, as police can be very strict. There are no roads connecting Panama and Colombia.

    The Darien Gap that physically connects the two countries has little to no infrastructure and is dominated by paramilitaries and drug cartels. You will not be allowed to leave the country without your car i. Expect to be stopped frequently by police, but don't worry, they are usually more curious about seeing a foreign car than interested in a bribe. If you have car trouble in Panama, you will find dealers with service departments for almost all of the major car manufacturers from the USA all , Europe almost all and Japan all.

    Most of them, like in the USA require appointments to service your car. Most of the service personnel in all of the car dealers are manufacturer certify. If you need parts for your vehicle, you can find a great number of autopart stores for all major car manufacturers in the yellow pages too. The use of "shade tree mechanics" and parts from junkyards are the same as in the USA: these options are for do-it-yourself type of people. If you're coming in from Costa Rica, however, things will be a bit easier. The trip from San Jose is quite cheap, but takes about 18 hours.

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    If you want to see things in between, you can also go by local buses, although the trip will take much longer. Check the website of Aeroperlas for flight schedules. Panamanian law requires you to have a return ticket to get into Panama. The border guard may not check, but you never know. The return ticket has to originate from within Panama. If you run into this problem, you can always buy a return ticket from the bus driver. In general, if you're having a hot-tempered day, it may not be a good day to cross any borders.

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    Some border officials in Central America seem to love being sticklers about their crazy rules if they decide they don't like you. Many cruise lines have the Panama Canal on their itineraries. It is possible to arrange for passage on banana boats traveling from Ecuador, Colombia, and Venezuela, but such passage is recommended only for the truly adventurous, as the boats are often structurally unsound, terribly over-burdened, and are very likely to be smuggling drugs as well. Private sail boats also provide service between Panama and Cartagena in Colombia.

    The best way to find a boat is to ask around in hostels in Panama City or Portobelo popular with backpackers. It is possible to hike across the Darien Gap from Colombia with the help of trained guides, but this route is generally considered one of the most dangerous in the world. A large percentage of attempts have ended with the trekkers dead as victims of the Colombian guerrillas and paramilitaries or the oppressive jungle environment, which is considered the densest and most difficult to breach in the world.

    Despite the bravado-filled tales of backpackers who will try to convince you that real travelers aren't afraid to cross the Gap, it really is a very dangerous trip and the Panamanian police are not interested in going in to look for you if you get into trouble. There are two kinds of buses in Panama: the ones you find on the highway, and "city buses" Metrobuses, which replaced the Diablos Rojos Red Devils.