Panama City (Spanish: Ciudad de Panamá) is the capital and largest city of the Republic of Panama. It has a population of 880,691, with a total metro population of 1,272,672, and it is located at the Pacific entrance of the Panama Canal, in the province of Panama. The city is the political and administrative center of the country, and a hub for international banking and commerce. It is considered a Beta World City.

With an average GDP per capita of $11,700, Panama has been among the top five places for retirement in the world, according to International Living magazine.^{[citation needed]} Panama City has a dense skyline of mostly highrise buildings, and it is surrounded by a large belt of tropical rainforest. Panama's Tocumen International Airport, the largest and busiest airport in Central America, offers daily flights to major international destinations.

Panama City was chosen to be the American Capital of Culture for 2003 (jointly, with Curitiba, Brazil).^{[citation needed]}

Panama was founded on August 15, 1519 by Spanish conquistador Pedro Arias Dávila. The city was the starting point of expeditions that conquered the Inca Empire in Peru. It was a stopover point of one of the most important trade routes in the history of the American continent leading to the fairs of Nombre de Dios and Portobelo, where most of the gold and silver that Spain took from the Americas passed through. The city was destroyed by a devastating fire, when the pirate Henry Morgan sacked it on January 28, 1671. It was rebuilt and formally established on January 21, 1673 in a peninsula located 8 km from the original settlement. The place where the previously devastated city was located is still in ruins, and has become a tourist attraction known as "Panama Viejo".

Panama (ⁱ/ˈpænəmɑː/ PAN-ə-mah; Spanish: Panamá), officially the Republic of Panama (Spanish: República de Panamá [reˈpuβlika ðe panaˈma]), is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean to the north and the Pacific Ocean to the south. The capital is Panama City. Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Nueva Granada, Ecuador, and Venezuela, named the Republic of Gran Colombia.When Gran Colombia the dissolved in 1831, Panama and Nueva Granada remained joined. Nueva Granada later became the Republic of Colombia.

With the backing of the United States, Panama seceded from Colombia in 1903, allowing the Panama Canal to be built by the U.S. Army Corps of Engineers between 1904 and 1914. In 1977, an agreement was signed for the complete transfer of the Canal from the United States to Panama by the end of the century.