Few cities blend the beauty of modern ambition with the richness of history as effortlessly as Panama City, Panama. A city of soaring skylines and ancient archaeological sites, it tells the story of its people and its land through a seamless fusion of past and present. In this city, colonial heritage coexists with a vibrant nightlife, creating a destination where history and modernity come alive side by side.
Today, the city has become one of Latin America’s most dynamic financial and commercial hubs, where colonial streets, gleaming skyscrapers, tropical rainforests, and world-class infrastructure are within minutes of one another.
As the gateway to the Panama Canal and one of the region’s leading business destinations, Panama City represents far more than a tourist hotspot. Home to UNESCO World Heritage Sites and recognized as a UNESCO Creative City of Gastronomy, it is a global connector driving trade, finance, innovation, and investment.
At a Glance
| Founded | 15 August 1519 |
| Known For | Panama Canal, Financial Hub, UNESCO Heritage, Creative City of Gastronomy |
| Economy | Services contribute nearly 75% of GDP |
| Currency | US Dollar-based (Dollarized Economy) |
| Climate | Tropical |
| Business Strengths | Logistics, Banking, Tourism, Infrastructure |
A City Built on History, Reinvented for the Future
Panama City, Panama, was founded by Pedrarias Dávila on August 15, 1519; its history tells a tale of resilience and reinvention. The original settlement, now known as Panama Viejo, flourished as one of the most important trading ports of the region until, on 28 January 1671, it was burned down by pirates. To date, the ruins of the old city are preserved and attract tourists. The city was rebuilt a few kilometers away, giving rise to the beautifully walled colonial city called Casco Antiguo.
These two historic districts, Panama Viejo and Casco Antiguo, stand as UNESCO World Heritage Sites, representing the city’s remarkable journey from colonial stronghold to modern global metropolis.
The Engine Behind Panama’s Economy
Panama City, Panama, is the country’s economic powerhouse and one of the most influential financial centers in Latin America.
Its strategic location, connecting the Atlantic and Pacific Oceans, has made it indispensable to global commerce. The Panama Canal, one of the world’s greatest engineering achievements, continues to fuel income into the city. The city’s service-driven economy accounts for approximately 75% of Panama’s GDP, supported by:
- Logistics and maritime services
- Banking and financial services
- Tourism and hospitality
- Construction and infrastructure
- Agriculture and agro-exports
Connecting the World
Panama City’s greatest competitive advantage is its unmatched connectivity.
The city anchors one of the world’s most integrated logistics ecosystems, where maritime, aviation, road, and digital infrastructure come together to facilitate international commerce. The Panama Canal remains the centerpiece of this network, enabling smooth movement between the Atlantic and Pacific Oceans while significantly reducing global shipping times.
Complementing the canal are modern container ports, free trade zones, logistics parks, and Tocumen International Airport, often referred to as the “Hub of the Americas”, which connects businesses and travelers to destinations across the Americas, Europe, and beyond.
This multimodal logistics network has positioned Panama City, Panama, as a preferred regional distribution and operations hub for multinational corporations serving Latin American markets.
Complementing these sectors are Panama’s dollarized economy, investor-friendly regulations, and strong global connectivity, making the city an attractive destination for multinational companies.
Why Investors Choose Panama
- Dollarized economy
- Strategic access to global shipping routes
- Investor-friendly legal and fiscal frameworks
- Economic and political stability
- Connectivity: Hub of the Americas
Panama continues to strengthen its reputation as one of the region’s most attractive investment destinations.
Panama’s New Government Projects Supporting Economic Growth
Since taking office in 2024, President José Raúl Mulino has announced a series of projects that place infrastructure, healthcare, education, and connectivity at the centre of Panama’s economic agenda. Together, these developments are expected to improve the country’s business environment, create jobs, and encourage investment across key sectors.
- Panama–David Railway
- A 400-kilometre railway linking Panama City with David.
- The project is expected to improve the movement of goods and people, strengthen regional trade, and support economic activity outside the capital.
- It is also anticipated to create opportunities in construction, logistics, real estate, and related industries.
- University City
- A long-term redevelopment plan to modernise Panama’s higher education infrastructure.
- The project aims to create a modern academic hub while transforming the current University of Panama campus into a government and civic district.
- Improved education infrastructure is expected to strengthen workforce development and support innovation-led industries.
- National Road Rehabilitation Plan
- Upgrades to major roads and highways across the country.
- Better transport networks will reduce travel times, improve freight movement, and support industries such as manufacturing, agriculture, tourism, and retail.
- Healthcare Expansion
- Continued construction of the Children’s Hospital alongside the development of new oncology centres in several cities.
- The projects will improve access to specialised healthcare while creating demand across the construction, medical equipment, and healthcare sectors.
- Public Procurement Opportunities
- Ongoing government projects are expected to generate contracts across infrastructure, engineering, technology, healthcare, and public services.
- These investments provide opportunities for both local and international businesses to participate in Panama’s development.
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Must-Visit Experiences
Panama Canal
The city’s defining landmark and one of the world’s most impressive engineering marvels, where visitors witness enormous vessels navigating between two oceans.
Casco Antiguo
A charming historic quarter lined with colonial churches, boutique hotels, rooftop restaurants, museums, art galleries, and vibrant cafés.
Panama Viejo
Explore the archaeological remains of the original settlement that laid the foundation for modern Panama City, Panama.
Amador Causeway
Built using rocks excavated during the Panama Canal’s construction, this scenic seafront links four islands and offers spectacular sea adventures.
Metropolitan Natural Park
One of the few tropical forests located within a capital city, offering hiking trails, birdwatching, and breathtaking city viewpoints.
Other City Highlights
- Cycle Along the Bay – Enjoy refreshing ocean breezes with spectacular views of the tall skylines.
- Gateway to Adventure – Board fishing charters or ferries to the beautiful Pearl Islands.
- Biomuseo – Discover Panama’s rich biodiversity.
- Panama Convention Center – A premier venue for international events.
- Smithsonian Tropical Research Institute – A globally renowned center for tropical and environmental research.
A UNESCO Gastronomic Destination
Panama City, Panama, has earned its recognition as a UNESCO Creative City of Gastronomy, celebrating its rich food culture and culinary innovation. The city is home to several restaurants ranked among Latin America’s Best Restaurants, offering everything from traditional Panamanian flavors to world-class international cuisine. Dining districts such as Casco Antiguo, San Francisco, and Costa del Este showcase stylish restaurants and a contemporary atmosphere, while the Cinta Costera offers authentic local dining experiences.
Conclusion: The Perfect Balance of Opportunity and Heritage
Panama City, Panama, flawlessly mixes a rich historical legacy with modern economic ambition. Home to the iconic Panama Canal, UNESCO World Heritage sites, vibrant financial districts, and tropical national parks, the city reflects the harmony of cultural preservation and global progress. Its unique combination of heritage, innovation, and natural beauty makes Panama City a dynamic destination where history and opportunity thrive together.
