The United States Geological Survey said the earthquake struck at a depth of 12.6 kilometres, warning that casualties were possible.
Residents rushed into the streets as buildings shook. Television footage showed elderly people in tears, while reports of damaged homes emerged from several areas.
Ricardo Brown, 74, from Las Minas in Herrera province, said his house had developed cracks and he feared it could collapse.
The Panama Canal, located about 203 kilometres from the epicentre, continued operating normally. Around 90 vessels, including tankers, bulk carriers and container ships, were waiting at both ends of the waterway to transit or dock.
The earthquake disrupted electricity supplies across six provinces, according to power provider Naturgy. Tocumen International Airport, a major regional aviation hub, suspended flights.
The USGS estimated that economic losses could reach between 1% and 10% of Panama’s gross domestic product.
Prolonged shaking across the country
Nestor Luque, director of Panama’s geosciences institute, said the earthquake was triggered by the Azuero-Soná Fault System, where pressure had accumulated over time.
He said seismic waves travelled across the country, allowing the tremors to be felt nationwide.
In Panama City, the shaking reportedly lasted around 40 seconds. Residents described the earthquake as unusually powerful and prolonged.
Sabina Rios, who was on the sixth floor of an old building in the capital, said it was the longest and strongest tremor she had experienced in years.
The earthquake caused traffic congestion across Panama City as offices released employees early amid concerns about building safety. Metro services were also suspended, while schools across the country closed their doors.
Buildings damaged, tsunami threat ends
The epicentre was near the rural community of La Pitaloza in Herrera province, close to the Pacific coast.
Shaking was also felt in San Jose, the capital of neighbouring Costa Rica.
Videos circulating on social media showed a damaged church and collapsed buildings in Penonome, a city between the epicentre and Panama City.
Omar Smith, head of Panama’s civil protection agency, said damage had also been reported in Chitre, the capital of Herrera province, and along the coast in Los Santos province.
The US Tsunami Warning System later confirmed that the tsunami threat associated with the earthquake had passed, with no further tsunami danger remaining.
Panama was scheduled to hold a nationwide evacuation drill the following Monday to test emergency response capabilities, including preparations for earthquakes.
