The European-Mediterranean Seismological Centre (EMSC) said the earthquake had a 6.9 magnitude and hit at a depth of 2 km (1.2 miles) about 321 km (200 miles) southeast of Costa Rica's capital, San Jose. The U.S. Geological Survey measured the quake at a 6.8 magnitude.
Quakes of that magnitude can cause severe damage.
A Reuters witness said the quake was felt in San Jose.
"Our team continues to monitor the areas where the earthquake this afternoon was perceived. No damage has been reported yet," Panama's civil protection agency said on Twitter.
Another Reuters witness in Panama City said the shaking was not felt there.
The U.S. National Tsunami Warning Center and Panama's civil protection agency both said no tsunami was expected.
Another temblor, with a magnitude of 6.3 and a depth of 22 km (14 miles), also struck near Panama, the EMSC said. (Reporting by Elida Moreno in Panama City and Alvaro Murillo in San Jose; Additional reporting by Derek Francis in Bengaluru and Anthony Esposito in Mexico City; Editing by Richard Pullin and Peter Cooney)
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