Panama City, capital and largest city of Panama. It is located on Panama’s central coast, near the Pacific end of the Panama Canal. Situated at the country’s narrowest point, Panama City has been a center for the movement of people and goods between the Atlantic and Pacific oceans since its founding in the 16th century.
It is also a center of domestic commerce and manufacturing. The city has a tropical maritime climate. Panama City has also expanded westward into part of the former Panama Canal Zone, an area around the Panama Canal that was administered by the United States from 1903 until 1979. This area, which is served by the Tumbamuerto highway, now includes upper-middle-class neighborhoods and the large Metropolitan Natural Park.