What is the capital of Panama?

The capital of Panama is Panama City. Known in Spanish as Ciudad de Panamá, it is the country’s largest city and a major center for government, banking, trade, and transportation.

The original city was founded by the Spanish conquistador Pedro Arias Dávila on August 15, 1519. Its location on the Pacific side of the isthmus made it a key link in Spain’s American empire. Treasure and silver crossed the isthmus from the Pacific before continuing toward Atlantic ports and Europe. The original settlement was destroyed in 1671, and the city was rebuilt in the area now known as Casco Viejo.

Panama City is sometimes confused with Colón, the Caribbean port at the Atlantic entrance to the Panama Canal, or with Santiago and David, important inland cities. The modern city sits near the Pacific entrance to the canal, which opened in 1914 and transformed global shipping.