Panama’s natural resources stand out for their water, forests and biodiversity, with 148 km³ of renewable freshwater resources and annual rainfall of 2,928 mm, the fourth highest in the world. Forests cover 56.81% of its territory, and the country is home to more than 10,000 plant and animal species. What are Panama’s natural resources?
Panama is a strategically located country with a wide variety of natural resources. Its geographic location is unique, as it connects North and South America.
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The country’s biodiversity is impressive, with more than 10,000 plant and animal species. It also has important water resources, such as the Panama Canal and the rivers around it.
As for mineral resources, Panama has large copper and gold deposits, although production at Cobre Panamá, its largest copper mine, has been halted since late 2023. The sustainable use of Panama’s natural resources is vital for the country’s economic development and for environmental protection.
Which natural resources stand out in Panama, and where does it rank globally? What natural wealth does the country have, and how does it rank in world mineral resource rankings? How much water does it have, and how does it generate energy?
Natural resources
Natural resources are materials or energy sources provided by or found on Earth that are useful to humans. Every product we manufacture is made up of natural resources.
- Renewable resources: these can be restored by natural processes faster than the rate at which they are consumed. Examples include solar radiation, wind, hydroelectric power, water when used properly, and plant and animal life.
- Non-renewable resources: once extracted, these are depleted and cannot regenerate. Examples include hydrocarbons, metals and minerals.
Examples of Panama’s main natural resources
Panama: the state of its forests
Change in forest area and the country’s environmental context.
| Forest cover | 56.3% of land area2023 |
|---|---|
| Forest area | 41,796 km²2023 |
| Annual change in forest area | −114 km² per year (2018–2023) |
| Agricultural land | 29.5% of land area2023 |
| Protected land area | 31.4% of land area2025 |
| Threatened species | 403 mammals, birds, fish and plants2022 |
Map of Panama’s natural resources by region
Panama combines the west, the center, the metropolitan Canal area, Darién and the Indigenous comarcas, each with distinct natural resources.
| Resource | Reserves / production | Source |
|---|---|---|
| Freshwater | 148 km³ (2020); 47th in the world | FAO |
| Precipitation | 2,928 mm/year; 4th in the world | World Bank |
| Renewable energy | 9.1 TWh (7.1 TWh hydroelectric, 2024) | EIA |
| Forests | 56.81% (42,138 km², 2020); 69th in the world | World Bank |
| Environmental performance | EPI 52.9; 49th place | EPI 2024, Yale |
| Biodiversity | 10,000+ plant and animal species | Mongabay |
Water resources of Panama
Panama had 148 km³ of renewable freshwater resources in 2020, which places it 47th in the world ranking of water reserves.
Panama’s main bodies of water include the Chagres and Tuira rivers, as well as Gatun Lake, the main water reservoir for the Panama Canal.
Average rainfall and soils of Panama
Panama has an average annual rainfall of 2,928 mm, which places it fourth in the world for rainfall. With so much rain, Panamanian soils tend to be moist and fertile, ideal for lush vegetation.
Renewable electricity and hydropower production in Panama
In 2024, Panama generated 9.1 TWh of electricity from renewable sources — 68% of its total generation of 13.4 TWh — and hydropower alone supplied 7.1 TWh (Ember, 2024), making it the country’s main source of renewable energy.
Panama’s most important hydroelectric plant is Fortuna, in Chiriquí Province, with an installed capacity of 300 MW.
Forest resources of Panama
Panama has considerable natural wealth in forest resources. The country’s main forest region is Darién Province, home to a great variety of plant and animal species.
In 2020, Panama’s forest area reached 56.81% of its land area, equivalent to 42,138 km². These figures place Panama 69th in the world ranking of forest area.
Environmental performance and protection of Panama’s natural resources
Panama scores 52.9 on Yale University’s 2024 Environmental Performance Index (EPI), ranking 49th in the world. Terrestrial and marine protected areas make up 27.68% of the total territorial area, which demonstrates the country’s commitment to biodiversity conservation.
Natural parks of Panama: the hidden wealth of natural resources
Biodiversity: animal and plant resources of Panama
Birds of Panama
Panama has an impressive 884 bird species recorded in 2018, placing it 21st in the world. It also has 9 endemic bird species, which makes it a unique destination for bird lovers.
However, 25 bird species in Panama are endangered, which highlights the need to protect and conserve this valuable natural resource. The country’s main bird species is the harpy eagle, a majestic predator that lives in Panama’s tropical forests.
Fish and amphibians of Panama
In 2019, 225 amphibian species were recorded, placing Panama 17th in the world for number of amphibian species.
In addition, 1,410 fish species were recorded. Panama ranks 25th in the world for number of fish species.
Mammals of Panama
Panama has a great diversity of mammal species, with a total of 246 species in 2016. However, 17 of them are threatened.
Panama ranks 26th in the world for number of mammal species. It also had 12 endemic mammal species in 2020, placing it 29th in this world ranking.
It is worth stressing that the conservation of these species is a valuable resource for the country. A notable species is the puma (Puma concolor), which lives in various regions of Panama.
Reptiles of Panama
Panama has a great diversity of reptile species, with a total of 278 species in 2019, placing it 29th in the world. The green iguana stands out.
Plants of Panama
Panama has a great diversity of vascular plants, with a total of 10,462 species recorded in 2020, placing it 17th in the world. Among the most notable species is the ceiba tree, valued for its cultural and ecological importance (Panama’s national tree is the Panama tree, Sterculia apetala).
Organizations that protect or study Panama’s natural resources
- Panthera – Wild cat conservation. Protects and conserves wild cats and their habitat in Panama.
- MarViva – Marine conservation. Promotes the conservation and sustainable use of marine and coastal resources in Panama.
- Ciudad del Saber (City of Knowledge) – Innovation and sustainability. Promotes innovation and sustainability in Panama through projects and programs.
- Earth Train (now Geoversity) – Environmental education. Provides environmental education and promotes biodiversity conservation in Panama.
- Panama Wildlife Conservation. Protects and conserves endangered animals and plants in Panama.
The Panama Canal runs on freshwater, not seawater. Every ship transit drains water from rain-fed lakes. The same watershed supplies 95% of the drinking water for Panama City, Colón and San Miguelito, according to the Autoridad del Canal de Panamá (Panama Canal Authority, ACP), 2024. The natural resource that defines the country is this freshwater reserve, shared between world trade and human consumption.
The Canal watershed: freshwater as a strategic resource
The isthmus connects the Atlantic and the Pacific, but the Canal does not mix the two oceans. Gatun and Alajuela lakes store the watershed’s rainfall and operate the locks. This system makes freshwater Panama’s most contested resource.
The 2023–2024 drought, associated with El Niño, lowered the lakes’ levels and forced operating restrictions.
- Daily transits fell from 36 to 24 ships, a drop of about 33% (Peterson Institute (PIIE), 2024).
- Gatun Lake was projected to fall to 79 to 80 feet in March and April 2024, the lowest level in the available record (Peterson Institute (PIIE), 2024).
- The watershed supplies 95% of the drinking water for three major urban areas (Panama Canal Authority, 2024).
A biological bridge between two continents
The Isthmus of Panama closed the gap between North and South America, forming a land connection. That link allowed plants and animals to move between the two subcontinents, and this position explains why species of both origins are found in such a small territory.
The Panamanian golden frog (Atelopus zeteki), endemic to the cloud forests of the country’s west-central region, illustrates the pressure on this wildlife. The Smithsonian National Zoo, 2024 classifies it as Critically Endangered and extinct in the wild, with no confirmed sightings since 2009. Its decline is attributed to chytrid fungus, habitat loss and collection for the pet trade.
Protected areas and land cover
Panama manages a system of terrestrial and marine-coastal reserves that frames the conservation of its resources.
- The country has 114 protected areas listed in the World Database on Protected Areas (WDPA) (Protected Planet (UNEP-WCMC), 2024).
- Terrestrial protected areas covered 31.4% of the country’s land area in 2024 (World Bank, 2024).
Forest cover
Forests cover much of the national territory and regulate the water that reaches the Canal watershed. Forest area accounted for 56.81% of the country’s land in 2020, according to the World Bank (FAO FRA), 2020. This figure places Panama among the Central American countries with forest cover over more than half of their territory.
Closure of the Cobre Panamá mine (2023)
Cobre Panamá was the country’s only large-scale metal mine. The Supreme Court declared its concession contract unconstitutional on November 28, 2023, and the government ordered an orderly shutdown of the operation (Mongabay, 2023).
- The mine was operated by Minera Panamá, a subsidiary of Canada’s First Quantum Minerals (Mongabay, 2023).
- The operation accounted for about 5% of national GDP (Mongabay, 2023).
Frequently asked questions
Where does the water that operates the Panama Canal come from?
From rain stored in Gatun and Alajuela lakes, within the Canal watershed. That watershed also supplies 95% of the drinking water for Panama City, Colón and San Miguelito (Panama Canal Authority, 2024).
What happened to the Cobre Panamá mine?
The Supreme Court declared its contract unconstitutional on November 28, 2023, and its closure was ordered. The operation accounted for about 5% of GDP (Mongabay, 2023).
How much of Panama’s territory is protected?
Terrestrial protected areas covered 31.4% of the country’s land in 2024 (World Bank, 2024).
Sources used
- List of countries by mineral production – Wikipedia
- Economic data by country – The Global Economy
- Forest area (km²) – World Bank
- Forest area (% of land area) – World Bank
- Water and agriculture statistics – FAO
- Precipitation (mm) – World Bank
- Environmental Performance Index (EPI) 2024 – Yale University
- Bird species – Mongabay
- Amphibian species by country – Mongabay
- Mammal species – Mongabay
- Plant species – Mongabay
- Reptile species by country – Mongabay
The Panama Canal Authority reported in 2023 that the Canal is the country’s main strategic resource, handling approximately 5% of world maritime trade.
Last updated: September 26, 2026
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