Panama City, capital and largest city of Panama, also the capital of Panama Province. 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, with a dry season from January to April and a rainy season from May to December. The average daily high temperature is 30° C (87° F), and the average daily low is 23° C (73° F).Microsoft® Encarta® Online Encyclopedia 2001
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