🇵🇦Panama Political Stability: 36.2/100

Panama is located in Central America, bordered by the Caribbean Sea and the Pacific Ocean, between Colombia and Costa Rica. The country features a mountainous terrain with the highest point being Volcán Barú at 3,474 meters. Panama has a tropical climate with high temperatures and humidity year-round, experiencing a rainy season from April to December.

In 2025, Panama's estimated population is 4.6 million, with a significant urban population exceeding 75%. The official language is Spanish, spoken by about 93% of the population, while various indigenous languages and English are also present. The population includes a diverse mix of ethnic groups, with a majority identifying as Mestizo, followed by Indigenous and Afro-Panamanian communities.

World Bank governance: rule of law 28th percentile, corruption control 20th percentile, political stability 40th percentile.

Panama's strongest governance dimension is Voice & Accountability at 58/100, placing it in the upper half globally. This indicates relatively strong citizen participation in selecting government, along with freedom of expression, association, and a free media.

The weakest dimension is Control of Corruption at 20/100. Corruption remains a significant governance challenge, potentially affecting everyday interactions with government institutions.

A notable 38-point gap between Voice & Accountability and Control of Corruption reveals uneven governance. Some institutions function well while others lag significantly. Travelers should be aware that the quality of government services and protections may vary depending on the context.

Weak governance indicators for Panama mean travelers should exercise heightened caution. Government services may be limited or unreliable, corruption can affect interactions with officials, and legal protections may not function as expected. Thorough preparation and situational awareness are essential.

The U.S. State Department currently rates Panama as Level 2 (Exercise Increased Caution). This aligns with a governance profile that, while not without challenges, provides a baseline of institutional functioning.