Country profile · Central America
Panama
Panama has about 4.6 million people (UN, 2025). President José Raúl Mulino has led it since July 2024. The Panama Canal carries about 5% of the world's seaborne trade. Panama has run the canal since the United States handed it over at the end of 1999. More ships fly Panama's flag than any other country's.
Where Panama ranks
All rankings →Who runs Panama?
President José Raúl Mulino was born on June 13, 1959, in David, Panama. He and his wife, Maricel Cohen, have four children. He studied law in Panama and maritime law at Tulane University in New Orleans. He was foreign minister until 1994. Under President Ricardo Martinelli he was minister of public security from 2010 to 2014. In 2023 Martinelli ran for president again and chose Mulino as his running mate. In February 2024 Martinelli's sentence of more than 10 years for money laundering became final. The Electoral Tribunal then removed him from the ballot and made Mulino the candidate. Mulino won the election of May 5, 2024 with 34.2% of the vote and took office on July 1. No party has a majority in the National Assembly (chart). Martinelli fled to Colombia in May 2025 and has since fallen out with Mulino. Presidents serve one five-year term, and the next election is due in May 2029.
- Realizando Metas (RM) and Alianza, the president's alliance 16
- Independents, most from the Vamos movement 20
- Other parties (PRD 13, CD 8, Panameñista 8, MOCA 3, PP 2, Molirena 1) 35
Photo (July 2024): Presidency of Colombia, Wikimedia Commons, public domain (cropped)
Who are Panama's allies and rivals?
The United States built the Panama Canal and ran it until December 31, 1999. In January 2025 President Trump said the United States would take the canal back, saying China was operating it. Panama then announced that it would leave China's Belt and Road Initiative. A deal signed on April 9, 2025 lets US troops train at three former US bases with no permanent bases. The United States pays for flights that send migrants home from Panama. Crossings of the Darién jungle fell from 520,085 in 2023 to 3,091 in 2025. China and Panama have had diplomatic ties since 2017, when Panama dropped Taiwan. After a court ruling against a Hong Kong port company in January 2026, China said Panama would pay a heavy price. President Mulino has refused to cut ties. In September 2026, 45 of the 71 members of parliament joined a group for exchanges with Taiwan's parliament. China warned of serious consequences.
Allies and partners
United StatesBuilt the canal; its troops train in Panama
ColombiaDarién border; agreed security cooperation in 2026
Costa RicaBacked Panama against Chinese pressure in 2026
Rivals
ChinaFull ties, strained by the 2026 port ruling
- Howard Former US air base. Since 2025, US troops train here and at two other former US bases.
- Cobre Panamá Copper mine closed since November 2023. A government commission recommended talks on its future in September 2026.
- Darién Gap Roadless jungle on the Colombian border. 520,085 migrants crossed in 2023, and 522 in 2026 by late September.
- Panama
- Partner
Who does Panama trade with?
Panama sells few goods of its own. Its exports of goods made or grown in Panama were worth $980 million in 2025. Imports were about $14 billion in 2024. The United States is the top buyer and the top supplier, and China is the second supplier (chart). The main exports in 2025 were frozen shrimp, palm oil and bananas. Panama earns most of its money from services. The Panama Canal paid $2.97 billion to the government for fiscal 2025. The Colón Free Zone, a duty-free trading area, re-exported $10.9 billion of goods in 2025, mostly to Latin America. China supplied 40.6% of the goods it imported. The economy grew 4.4% in 2025. In October 2026 the EU took Panama off its blacklist of tax havens. The Cobre Panamá copper mine made up about 5% of the economy. It closed in November 2023, after mass protests and a Supreme Court ruling against its contract.
Sells to
Share of Panama's exports
- United States20.2%
Netherlands12.1%
Taiwan9.7%
India4.7%- China4.3%
Buys from
Share of Panama's imports
- United States17.3%
- China15.4%
Mexico4.5%- Costa Rica3.5%
- Colombia2.4%
Goods, 2024. UN Comtrade, as reported by Panama. Not shown: 23% of imports came through Panama's own free zones, most of it fuel.
Who controls the Panama Canal?
Panama does. The Panama Canal Authority has run the canal since December 31, 1999. In September 2026 Ilya Espino de Marotta became the first woman to lead it. In the year to September 2025, 13,404 ships crossed and the canal earned $5.7 billion. About 70% of its cargo comes from or goes to the United States. China is the second-biggest user. The dispute has been over the ports at each end. The Hong Kong company CK Hutchison had run the ports of Balboa and Cristóbal since 1997. On January 29, 2026, Panama's Supreme Court struck down the law behind its contract. The state took over both ports in February. Maersk's APM Terminals and MSC's TiL now run them for up to 18 months. CK Hutchison is seeking more than $3.5 billion in two arbitration cases. A dry rainy season also cut the canal's daily booking slots from 36 to 32 in September 2026.
Why do so many ships fly Panama's flag?
About 7,700 ships fly Panama's flag, more than any other country's flag. By carrying capacity, Panama is second to Liberia, with about 14% of the world's merchant fleet (chart). Panama opened its ship register to foreign owners with laws in 1917 and 1925. A shipowner from any country can register a ship there, often more cheaply and simply than at home. Liberia passed Panama in gross tonnage in 2023. More than 650 ships left Panama's register in the past year, and the registry calls this a clean-up. Since October 2024 a decree lets Panama remove ships under international sanctions. It removed 107 in the first six months. In October 2026 it began removing three tankers that the United States sanctioned for carrying Iranian oil. After the court ruling against CK Hutchison, China held Panama-flagged ships in its ports for inspection. Detentions reached 140 in May 2026 and fell to 16 in July after talks.
Merchant fleet by flag, January 2026
Full ranking →
Liberia447- Panama350
Marshall Islands318
Singapore186- China142
Malta114
Bahamas71.3
Greece51.7
UNCTADstat maritime transport data, from Clarksons Research, 2026