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David Whittington of Tucan Golf Club and Resort – Best Places In The World To Retire User Account
Breakfast in Boquete, Panama – Best Places In The World To Retire – International LivingI can give the example of Boquete, where I used to live, at about 3,600 feet elevation.  We didn’t have air conditioning.  There were times when we wore jackets and sweaters at night. The temperature would go down to 65 in the evening and it could be 85 in the day time, pushing 90.
But in the summer time in Boquete, it is the dry season, when it can become very windy. I remember being in Boquete in April one time and there were people from Panama City who had their jackets on.
(Breakfast in chilly Boquete, Panama, pictured.)
T Rob Brown of Panama Helpline – Best Places In The World To Retire User Account
Biosphere in the Volcan Baru National Park, Panama – Best Places In The World To Retire – International Living

Temperature decreases with increases in altitude according to these temperature lapse rates: 

Volcán Barú in Chiriquí is 11,398 feet, El Valle de Anton is 2,000 feet - do the math.

  1. Dry: the dry lapse rate is 5.5 F degrees per 1,000 feet. Dry air moving up or down. It is a function of atmospheric pressure, air density, and the molecular activity of a parcel of air.
  2. Wet: the wet lapse rate is 3 F degrees per 1,000 feet. Moist air rising vertically. It is affected by the release of latent heat from the condensation of water vapor.
  3. Normal: the normal lapse rate averages about 3.5 F degrees per 1,000 feet.
(Volcán Barú National Park, Panama, pictured.)
Lourdes Townshend of Multimodal  & Logistic Transports Magazine – Best Places In The World To Retire User Account
Mountains in Panama
Volcan Baru Mountain, Panama – Best Places In The World To Retire – International LivingWhen you're in Panama, whether you live in the city or have a country house, you will always have the pleasure of looking at either a hill or a beautiful mountain, close to any city, town or village.
Panama is a very small country, and its green environment  is absolutely unique.  With several of the most prime rainforests and exotic animals, plants and rocks in the world, Panama offers it all, in a natural look.  This is one of the reasons why so many people are seeking to visit or retire here in Panama, a country that has been named destination #1 for retirement or investment.
Even though "Volcan Baru", the tallest mountain in the country is approximately 8 hours driving from the city of Panama, it receives thousands of visitors per year, who became enchanted with the view, and the local people who live around the area.
The temperature there is the envy of many other towns.  There are also other towns with beautiful mountains, like Boquete (in the province of Chiriqui), Campana, Cerro Azul, Cermeno, and regions in the central provinces, like Veraguas, or Cocle.  There is a very nice place called "Cerro la Vieja: (Old lady Hill), located near the town of Penonome that is famous for some country resorts in which you can enjoy natural spas, horseback riding, natural water falls, and thousands of beautiful butterflies and birds.
But yet, all these mountains are only short drives from any town or city.  And locals in these places are so warm and friendly, that anyone would pleasantly surprised upon arrival at how much they had missed.
Robert Adams of Retirement Wave – Best Places In The World To Retire User Account
Mountains in Panama – Best Places In The World To Retire – International LivingThere are mountains in Panama; there’s no question about it, but they’re not like the Rocky Mountains that are super-high. It rains as much up in the mountains as it does at the lower elevations but the temperatures fall as you rise in elevation, perhaps 10 degrees or even quite a bit more, depending on where you started and how high you go.  In some of the higher mountain areas, they actually have fireplaces. They are not common, but they do have them.
The key point is this. Choosing where to live based on the temperature is the wrong reason to move. I have people coming down looking for some perfect weather situation, but that’s not what you need. What you need is a community of people and surroundings where you feel comfortable, where there are things that you enjoy doing. I remind people that no matter where you live in Panama, you’re never more than probably an hour, probably less, from the beach or from the mountains or the countryside. You can always go visit these places any time you’d like. The key is to find a place to live that you can enjoy.
For most retirees, a place where they enjoy is with other retirees that they can socialize with. I think that’s one of the most important things to them. Some expat retirees can exist happily in the mountains, or on the beaches, or in the cities. That’s what you look for, the things that make your life full and fill in the gaps. 
You’re looking for a place to live, not a place to go on vacation.  30 days after you have been here, you wouldn’t even notice the ocean and the beautiful mountains. What you’d notice is whether or not you can get quickly to the things you need regularly. You’re going be concerned more about how many friends you have made, how many activities you have for the weekend. This is what makes up 98% of your time.  Everything else, like the temperature, sort of slides into the background. These things are only important when you first arrive. Later on, you’ll begin to realize you’re not on vacation; you really do live here. You wish you were closer to a bigger hardware store, for example, for somebody who’s into that or you wish you were near a place where you had more restaurants where you can go out and eat.  It’s the sort of thing you have to think about, and especially finding people you like to be around. I give that more importance than temperature.
Paul McBride – Best Places In The World To Retire User Account
Geographically, Panama actually lies in a west to east direction so Costa Rica is on the western border and Colombia is on the eastern border.  The north coast of Panama borders the Caribbean Sea and the south coast borders the Pacific Ocean.  Most people naturally assume that Panama is oriented north to south when in actuality it lies east to west.  This has a major impact on the weather and the climate.
The North American continental divide runs right down the middle of Panama.  The highest mountain in Panama is Volcan Baru and has an elevation of just about 11,400 feet (3,475 meters) above sea level.  Volcan Baru is located in Western Panama and Boquete lies along the eastern slope of the mountain.
The mountains of Panama have a great effect on the weather and climate.  During our dry season (mid-December through April) the prevailing winds are from the north (or the Caribbean side) and these winds dry out the Pacific side of the country.  The mountains block much of the wind at this time and become a rain shield for the Pacific coast.  The humidity drops, rainfall is at a minimum, the days are sunny and the skies are clear.  By contrast, the weather on the Caribbean side can be much wetter during this period.
Panama is an equatorial tropical country, which means that our temperatures are warm and humid all year long.  However, the mountains of Panama affect the climate in an interesting way.  The higher in elevation you go, the cooler the air temperature becomes.  For example, the city of David (the capital of the Chiriqui Province) is located at about sea level and is always hot and humid.  However, as you make the 24-mile (38 kilometer) drive to Boquete you gain over 3,500 feet in elevation and temperatures can drop as much as 15 degree F.  It’s not unusual to be in David where the temperature is in the mid-90’s and drive 40-minutes to Boquete and the temperature is in the upper 70’s.
The mountains have another effect on the weather.  During the wet season, warm moist air from the Pacific Ocean rises up the slopes of the surrounding mountain.  As this air moves upward, the moisture is forced out of the air and the results are the thunderstorms we experience during this time.   The more moisture the air holds, the stronger the thunderstorm.
The mountains of Panama have a major impact on the weather and are the reasons we enjoy such a pleasant climate in Boquete.
Jade Wills of Maya Moon Marketing – Best Places In The World To Retire User Account
How high are the mountains in Panama?  Panama's highest peak and only volcano at 3,478 meters (Volcan Baru NP in Boquete , Panama). How does this change the weather? Well Like any other high altitude place, the weather is much cooler and also has a bit more rain. The occasional fall of hail or ice pellets has been reported on the summit of Volcan Baru, where the minimal temperature can be below 0°C (32°F) and the formation of frost is frequent during the dry season.

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