Panama is the southernmost country in Central America. The country is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The capital and largest city is Panama City, whose metropolitan area is home to nearly half the country's 4 million people.
Panama was inhabited by indigenous tribes before Spanish colonists arrived in the 16th century. It broke away from Spain in 1821 and joined a union of Nueva Granada, Ecuador, and Venezuela named the Republic of Gran Colombia. When Gran Colombia dissolved in 1831, Panama and Nueva Granada became separate countries. In 1903, Panama seceded from Nueva Granada and joined the Republic of Colombia.
The U.S. invasion of Panama in December 1989 removed Manuel Noriega from power. Noriega, a general and dictator, had been an ally of the U.S. during the 1980s but was accused of drug trafficking and facilitating the flow of Colombian cocaine into the United States. The invasion, code-named Operation Just Cause, was the largest U.S. military operation since the Vietnam War.
Since the invasion, Panama has worked to improve its relations with the U.S. and has been an active participant in the international war on drugs. The country has also made strides in reducing poverty and improving its infrastructure.
Economy
104.10 billion US dollars