Panama Country Report

Panama, one of Latin America's most successful countries in terms of economic development, is located at the juncture of Central and South America. Its control of the Panama Canal - the sole artificial connection between the Atlantic and Pacific Oceans - gives it great importance to the shipping and tourism industries. Its biodiversity further bolsters a strong tourism sector, complemented by a financial sector driven by what is one of Latin America's top cities for banking and commerce: Panama City. However, the country has often been criticized as a tax haven in the past and is still grappling with how to spread its relative prosperity more equally among its citizens. Corruption is also a constant issue within government.

The primary risk for travel to Panama is opportunistic crime, particularly in Panama City. Only those traveling to largely inaccessible parts of the Darien region and Mosquito Coast will experience a significant, persistent risk of violent crime, as well. Though the country is generally too far south to be affected by hurricanes, earthquakes remain a somewhat common occurrence, and flooding can be frequent during the rainy season.

There is no conflict risk in Panama. Crime is low by Latin American standards but still high as compared to much of Europe and North America. The Darien border region, in particular, is known for a high degree of lawlessness. Concerns exist over money laundering, but there is no notable risk of a terror attack within Panama. The country sees occasional protests over a variety of issues, but most are generally non-violent.

Air travel is considered safe to and from Panama.

The road network in Panama is well developed by Latin American standards, although roads in rural areas will still vary greatly in quality; many regions of the country, however, still remain inaccessible by vehicle.

The ports are considered efficient.

Basic services such as water, electricity, and fuel availability are highly reliable in urban areas and generally reliable in populated rural areas, as well.

The country represents an attractive target for cyberattacks. Its defenses against such an attack are likely moderate-to-strong, particularly in the financial sector.

Panama’s climate is generally tropical year-round, with distinct rainy and dry seasons. The country has no major manmade problems, but development efforts have consistently raised concerns regarding deforestation and water pollution. Earthquakes are a fairly common occurrence in Panama. While most are moderate, some can be severe. The country is rarely affected by organized tropical activity but does still see frequent, heavy rains annually.

Mosquito-borne diseases, including yellow fever, are the major non-routine epidemiological concern in the country. Panama City is known to have some good hospitals and clinics, however, medical facilities outside of the capital are limited. Pharmacies are widely available in Panama and many medications are accessible. The availability of medicines in less populated areas will vary. Tap water is considered safe for drinking in the capital and other urban areas only.

Despite its high indicators in terms of governance and economic development, corruption remains disconcertingly high. Panama’s record on rule of law is mixed, with particular difficulties concerning corruption as well as lawlessness in Darien province. Panamanian democracy and governance are in general considered strong, however. Sanctions are a potential worry, but not currently an issue, for Panama.