Panama explained to kids

Panama is a country located in Central America. It has coastlines on both the Caribbean Sea and the Pacific Ocean. Panama is the southernmost country in Central America. The Panama Canal is a man-made waterway that connects the Pacific and Atlantic oceans. Panama is also the site of the Panama Canal, one of the most important shipping routes in the world. The country is divided into two regions, the Spanish-speaking western part of the country and the English-speaking eastern part. Panama is a republic, and the president is both head of state and head of government. The population of Panama is about 4 million. The capital and largest city is Panama City. The first people to live in Panama were the Indigenous peoples. The Spanish arrived in the 1500s and conquered the area. Panama became part of the Spanish empire. The country declared independence from Spain in 1821. Panama was part of the Republic of Gran Colombia until 1903, when it became a separate country. The Panama Canal was built by the United States from 1904 to 1914. The Canal Zone was an area of Panama under US control. The Canal Zone was abolished in 1979 and Panama took control of the Canal. Panama is a developed country. The economy is based on services such as banking and tourism. The Panama Canal is an important source of income for the country. Panama is also a popular retirement destination for foreigners.