Panama operates on Eastern Standard Time (EST), which is 5 hours behind Coordinated Universal Time (UTC-5). Panama does not observe daylight saving time, so the time remains consistent throughout the year.
All of Panama follows the same timezone. The capital Panama City, the Bocas del Toro archipelago, and both the Pacific and Caribbean coasts all observe Eastern Standard Time. Panama is the only Central American country on UTC-5, making it one hour ahead of its neighbors.
The Panama Canal is one of the most important waterways in the world, connecting the Atlantic and Pacific Oceans and handling about 5% of world trade. Due to the S-shaped isthmus, the sun rises over the Pacific Ocean and sets over the Atlantic in some parts of Panama. Panama City has the only rainforest within the city limits of a major city.