World Happiness Report for Panama 2024
- Overall Happiness Rank Panama: 39
- Happiness Score Panama:6.358
Happiness is a subjective concept that has long been debated by philosophers, psychologists, and economists alike. However, in recent years, there has been a growing interest in quantifying happiness and using it as a measure of a nation’s overall well-being. This is where the concept of the Happiness Index comes into play.
What is the Happiness Index?
The Happiness Index is a measure that attempts to quantify the overall happiness and life satisfaction of a country’s population. It is based on the idea that traditional economic indicators, such as Gross Domestic Product (GDP), do not fully capture the overall well-being of a society. The Happiness Index takes into account various factors that contribute to an individual’s sense of happiness and life satisfaction, including social support, freedom to make life choices, healthy life expectancy, and perceptions of corruption.
How is the Happiness Index Calculated?
The Happiness Index is calculated through a combination of subjective and objective data. The primary source of data is the Gallup World Poll, which is a survey conducted in over 160 countries. The survey asks respondents to rate their overall life satisfaction on a scale of 0 to 10, with 0 being the worst possible life and 10 being the best possible life.
In addition to the life satisfaction score, the Happiness Index also takes into account the following factors:
- GDP per capita: This is a measure of a country’s economic output and standard of living.
- Social support: This factor measures the extent to which individuals have supportive relationships and love in their lives.
- Healthy life expectancy: This is a measure of the number of years an individual is expected to live in good health.
- Freedom to make life choices: This factor measures the extent to which individuals are able to make decisions about their lives without external constraints.
- Generosity: This factor measures the extent to which individuals engage in charitable activities and donate to others.
- Perceptions of corruption: This factor measures the extent to which individuals perceive their society to be free from corruption.
These factors are weighted and combined to produce an overall Happiness Index score for each country.
What Does the Happiness Index Affect?
The Happiness Index has significant implications for policymaking and societal well-being. Countries with higher Happiness Index scores are generally considered to have better overall quality of life and well-being for their citizens. This can have positive impacts on various aspects of society, including:
- Economic productivity: Happier individuals tend to be more productive and engaged in their work, which can contribute to a country’s economic growth.
- Public health: Higher levels of happiness and life satisfaction are associated with better physical and mental health outcomes, which can reduce healthcare costs and improve overall well-being.
- Social cohesion: Societies with higher levels of happiness tend to have stronger social bonds and lower levels of conflict and crime.
- Environmental sustainability: Happier individuals may be more likely to engage in environmentally-friendly behaviors and support policies that promote sustainability.
By focusing on the factors that contribute to happiness and well-being, policymakers can develop strategies to improve the overall quality of life for their citizens. The Happiness Index provides a valuable tool for measuring progress and identifying areas where improvements can be made.
Short information
- Abbreviation of Panama. PA.
Panama is a country located in Central America, with a democratic political structure and a growing economy driven by the Panama Canal.
- Panama is known for its rich cultural heritage, with a diverse mix of indigenous, African, and Spanish influences.
- The Panama Canal is a key economic asset, providing a crucial link for global trade and contributing significantly to the country’s economy.
- Panama is home to a wide variety of biodiversity, with unique wildlife and ecosystems in its rainforests and marine areas.
Panama – A Comprehensive Overview
Overview of Panama
Early History: The Isthmus of Panama was initially inhabited by indigenous groups such as the Kunas, Ngöbe-Buglé, and Emberá. The earliest known settlements date back to around 2500 BC.
Kingdoms and Empires: The area was part of various pre-Columbian civilizations, including the Chibchan-speaking tribes and the Coclé culture, known for their skilled pottery and metalwork.
Colonial Period: In 1501, Rodrigo de Bastidas became the first European to explore the Isthmus of Panama. Spain established the settlement of Panama City in 1519, and the territory became part of the Spanish Empire, serving as a vital transshipment point for the flow of goods and riches from the Americas to Spain.
Independence and Modern Era: Panama declared independence from Spain in 1821, joining the Republic of Gran Colombia. In 1903, Panama separated from Colombia with the support of the United States, which had a vested interest in constructing the Panama Canal. The Panama Canal was built between 1904 and 1914, establishing Panama as a strategic global maritime hub. The country experienced political instability and military dictatorships until the late 20th century, when democratic reforms were implemented.
Current Political Situation: Panama is a constitutional presidential republic with a multi-party system. The current president is Laurentino Cortizo, who took office in 2019. Recent elections have been deemed generally free and fair.
International Relations: Panama maintains close ties with the United States and has a long-standing regional alliance with neighboring countries in Central America. It has a territorial dispute with Colombia over the Serrana Islands.
Human Development and Economy: Panama has a service-based economy, with the Panama Canal, banking, logistics, and tourism as major industries. The country has a relatively high Human Development Index ranking.
Cultural Highlights: Panama has a diverse cultural heritage, influenced by indigenous, Spanish, Afro-Caribbean, and other cultures. Spanish is the official language, but English is widely spoken. Notable cultural contributions include the pollera dress, cuisine, and festivals like Carnaval.
Challenges and Opportunities: Panama faces challenges related to income inequality, corruption, and environmental issues. However, its strategic location, stable economy, and ambitious infrastructure projects present opportunities for further growth and development.
Travel Tips for Panama
– Best times to visit: The dry season (December to April) is generally the most popular, with sunny weather and less humidity.
– Cultural etiquette: Greet people with a handshake, dress conservatively for city visits, and ask permission before taking photographs.
– Safety precautions: Exercise caution in some urban areas, avoid isolated beaches at night, and follow travel advisories.
– Must-see landmarks: Panama Canal, Casco Viejo (Old Town), San Blas Islands, Volcán Barú, and indigenous communities.
– Culinary experiences: Try local dishes like sancocho, ceviche, and patacones (fried green plantains).
Living in Panama
– Cost of living: Panama City is relatively expensive, but costs are lower in other areas. Housing and healthcare are affordable compared to many Western countries.
– Housing: Options range from apartments in the city to beach homes and mountain cabins. Expat communities are prevalent.
– Healthcare: Panama has a universal healthcare system and quality private hospitals. Many expats opt for private insurance.
– Education: Public and private schools are available, with a growing number of international schools.
– Lifestyle: Panama offers a tropical climate, outdoor activities, and a relaxed pace of life outside the capital.
Main facts
Location
Panama is located in Central America, bordering both the Caribbean Sea and the Pacific Ocean, between Colombia and Costa Rica. It controls the strategic isthmus linking North and South America and is known for the famous Panama Canal.
Map References
Panama is located in Central America.
Area – Comparative
Panama has an area slightly smaller than the U.S. state of South Carolina.
Land Boundaries and Border Countries
Panama shares land borders with Colombia (225 km) and Costa Rica (330 km).
Coastline (if applicable)
Panama has a total coastline of 2,490 km, consisting of 1,787 km of continental coastline and 703 km of coastline along its islands.
Maritime Claims
Panama claims a territorial sea of 12 nautical miles, an exclusive economic zone of 200 nautical miles, and a continental shelf of 200 nautical miles or to the edge of the continental margin.
Climate
Panama has a tropical maritime climate with hot, humid, and cloudy conditions on both the Pacific and Caribbean coasts. The climate is mitigated by the cooling effects of the trade winds and the Andes Mountains.
Terrain
Panama’s terrain is marked by interior, mostly gentle mountainous regions and narrow coastal plains, with rugged highlands forming the continental divide. The highest point is the dormant Barú volcano, located near the Costa Rican border.
Elevation Extremes
Panama’s highest point is Volcán Barú (3,475 m), located near the Costa Rican border. The lowest point is the Pacific Ocean (0 m).
Natural Resources
Panama’s major natural resources include copper, mahogany forests, shrimp, hydropower potential, and a favorable geographic position.
Major Bodies of Water
Panama is home to several major water bodies, including the Panama Canal, the Gulf of Panama, the Chagres River, and Lake Gatun, which is a key part of the Panama Canal system.
Natural Hazards
Panama is subject to occasional severe storms and forest fires in the interior regions. The country’s location along the Ring of Fire also makes it vulnerable to earthquakes and volcanic activity.
Geography – Notes
Panama’s strategic location and the Panama Canal have been crucial to the country’s economy and global significance. The canal, which is fully controlled by Panama, is a key maritime trade route connecting the Atlantic and Pacific Oceans.
- Forest Area (% of land area): 61.90%. This is the percentage of a country’s total land area that is covered by natural or planted forests.
- Co2 Emissions: 10,715. CO2 emissions refer to the release of carbon dioxide gas into the atmosphere, primarily from the burning of fossil fuels (coal, oil, and natural gas) for energy production, transportation, and industrial processes.
- Agricultural Land( %). 30.40%. Agricultural land refers to the share of land area that is arable and used for cultivating crops or raising livestock.
- Geographic Coordinates: 8.537981-80.782127.
- Capital: The capital of Panama is Panama City
- Major Cities:
- Panama City – Population: 880,691
- San Miguelito – Population: 315,019
- Tocumen – Population: 103,177
- David – Population: 91,312
- Arraiján – Population: 76,815
- Population: 4,246,439
- Area(Km2): 75420
- Population Density( P/Km²):58. This is the number of people living per square kilometer of land area in a given region or country.
- Calling Code:507
- Official Language(s):Panama is Spanish (100%).
- Currency:
Main Economic Indicators
Panama’s economy is a highly dollarized, service-based economy with a strong logistics and maritime services sector. It has a sizable middle class and benefits from its strategic geographic position and well-developed transportation infrastructure, including the Panama Canal. The economy’s key challenges include maintaining competitiveness, addressing income inequality, and fostering economic diversification. Panama has embraced pro-growth policies and pursued trade liberalization through various free trade agreements.
Inflation Rate (Consumer Prices)
Inflation rate (consumer prices): 0.8% (2020 est.), 0.4% (2019 est.)
Source: CIA World Factbook
Credit Ratings
Fitch: BBB (Stable)
Moody’s: Baa1 (Stable)
Standard & Poor’s: BBB+ (Stable)
GDP – Composition by Sector of Origin
Agriculture: 2.4%
Industry: 17.1%
Services: 80.5%
Key Agricultural and Industrial Products
Agricultural Products: bananas, pineapples, rice, corn, beans, sugar cane, poultry, eggs, pork, beef
Industrial Products: construction materials, refined petroleum, beer, fisheries products, furniture, paint, plastic products
Labor Force
Total Labor Force: 1.842 million (2020 est.)
Ranking: 125th in the world
Current Account Balance
Current Account Balance: -$2.94 billion (2019 est.)
Ranking: 162nd in the world
Exports and Imports
Exports: $19.98 billion (2019 est.)
Key Partners: United States, Netherlands, Costa Rica, Belgium, Germany
Main Commodities: gold, bananas, fish, shrimp, sugar, iron and steel waste
Imports: $25.97 billion (2019 est.)
Key Partners: United States, China, Mexico, Costa Rica, Colombia
Main Commodities: petroleum products, vehicles, machinery, iron and steel products, pharmaceuticals
Reserves of Foreign Exchange and Gold
Foreign Exchange Reserves: $2.767 billion (2019 est.)
Gold Reserves: 0.49 million ounces (2019 est.)
- GDP (Current US$):$66,800,800,000. It represents a country’s gross domestic product measured in current US dollars. Higher values indicate a larger economy and economic output.
- Tax Revenue (% of GDP): . It refers to the amount of tax revenue collected by the government, expressed as a percentage of the country’s gross domestic product (GDP). Higher values indicate a higher tax burden relative to the size of the economy.
- Total Tax Rate (% of commercial profits): 37.20%. This is the sum of all taxes payable by businesses, expressed as a percentage of their commercial profits. Higher values indicate a higher tax burden on businesses.
- Gasoline Price. $0.74. It refers to the cost of one liter or gallon of gasoline/petrol. Higher values indicate more expensive gasoline prices for consumers and businesses.
- Minimum wage. $1.53. It refers to the lowest legally mandated hourly wage that employers must pay their workers. Higher values indicate a higher minimum level of pay for low-wage workers.
- Unemployment Rate (%): 3.90%. It represents the percentage of the labor force that is unemployed and actively seeking employment. Higher values indicate more joblessness in the economy.
Social Indicators
1. National Identity
Nationality: Panamanian(s)
Adjective: Panamanian
2. Ethnic Groups
- Mestizo (mixed Amerindian and white) 65%
- Amerindian 12.3%
- Black or African descent 9.2%
- Mulatto 6.8%
- White 6.7%
3. Religions
- Roman Catholic 70.9%
- Evangelical Christian 15.2%
- Other/None 7.4%
- Jehovah’s Witness 1.5%
- Jewish 0.1%
4. Age Structure
- 0-14 years: 25.95%
- 15-64 years: 65.6%
- 65 years and over: 8.45%
5. Dependency Ratios
Total dependency ratio: 52.3
Youth dependency ratio: 39.6
Elderly dependency ratio: 12.7
6. Median Age
Total: 29.8 years
Male: 28.9 years
Female: 30.8 years
7. Lifestyle Indicators
- Obesity rate: 22.7% (2016)
- Alcohol consumption: 6.7 liters of pure alcohol per capita per year (2016)
- Tobacco use: 6.4% of adults (2020)
- Life Expectancy at Birth: 78.3. Life Expectancy at Birth refers to the estimated average number of years a newborn is expected to live based on current mortality rates. Higher values indicate better health outcomes and living conditions in a country or region.
- Literacy Rate (% of adults): 94.8%. It refers to the percentage of the population aged 15 and above who can read and write with understanding of a short simple statement about their everyday life. Higher literacy rates indicate better educational attainment within a population.
- Birth Rate:18.98. Birth Rate is the total number of live births per 1,000 population in a given year. Higher birth rates indicate a larger share of the population being born each year.
- Death Rate:6. Death Rate is the number of deaths per 1,000 population in a given year. Higher death rates indicate more people dying annually within a population.
- Fertility Rate: 2.46. Fertility Rate is the average number of children a woman would have over her reproductive years based on current birth rates. Higher fertility rates indicate larger family sizes and population growth.
- Internet Users (% of population): 54.5%. Internet Users (% of population) refers to the percentage of the total population in a country or region that has access to and uses the internet. Higher values indicate greater internet penetration and connectivity among the population.
- Urban Population: 2,890,084. Urban Population refers to the percentage or number of people living in urban areas or cities within a country or region. Higher urban population values indicate greater urbanization and concentration of people in cities compared to rural areas.
- Out of Pocket Health Expenditure (% of total health expenditure):30.50%. Out of Pocket Health Expenditure (% of total health expenditure) represents the portion of total health care costs that individuals pay directly out of their own pockets, rather than being covered by insurance or government programs. Higher values indicate greater personal financial burden for health care expenses.
Infrastructure and Services
Military and Security Forces
Panama’s military was disbanded after the United States invasion in 1989, and since then, its security has been maintained by civilian forces. The main components are:
- National Air-Naval Service (SENAN): Responsible for maritime security, border control, and air operations.
- National Border Service (SENAFRONT): Tasked with border security and immigration control.
- National Police (PN): The primary law enforcement agency responsible for maintaining public order and internal security.
Military Expenditures
Panama’s military expenditures as a percentage of GDP for the last five years:
- 2017: 0.7%
- 2018: 0.7%
- 2019: 0.7%
- 2020: 0.7%
- 2021: 0.7%
Panama ranks relatively low in global military spending, reflecting its focus on civilian security forces.
Personnel Strengths
Panama’s security forces have the following personnel strengths:
- National Air-Naval Service (SENAN): Approximately 3,000 personnel
- National Border Service (SENAFRONT): Around 2,000 personnel
- National Police (PN): Approximately 25,000 officers
Military Equipment Inventories and Acquisitions
Panama’s security forces are primarily equipped with light arms and patrol vessels. The National Air-Naval Service operates a small fleet of aircraft and patrol boats for maritime surveillance and interdiction operations. There are no significant ongoing military acquisitions or development programs.
Military Service Age and Obligation
Panama has no active military service obligation. The National Air-Naval Service and National Border Service have voluntary enlistment programs with a minimum age requirement of 18 years.
Military Deployments
Panama does not have any significant overseas military deployments. However, it contributes a limited number of personnel to the United Nations Stabilization Mission in Haiti (MINUSTAH) and other UN peacekeeping operations.
Strategic Military Notes
Panama’s defense strategy focuses on maintaining the security of the Panama Canal, a critical strategic waterway for global trade. The country’s security forces prioritize border control, maritime interdiction, and counter-narcotics operations. Panama has close security cooperation with the United States, hosting several U.S. military installations and participating in joint training and operations.
- Armed Forces Size: 0. Armed Forces Size refers to the total number of active personnel serving in a country’s military forces, including the army, navy, air force, and other branches. Higher values indicate a larger military presence and personnel.
- Physicians per Thousand: Number of doctors per 1,000 people is 1.57
- Population: Labor Force Participation (%): 66.60%. This is the percentage of the total population aged 15 and older that is economically active, meaning they are either employed or actively seeking employment. Higher values indicate a greater proportion of the working-age population engaged in the labor force.