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Panama beat Bolivia 3-1 on Monday to finish second in Group C and qualify for the Copa America quarter-finals after tournament hosts United States were eliminated following a 1-0 loss to group winners Uruguay.

Panama are playing in only their second Copa America and the victory moved them up to second with six points, three points above the U.S., as the central American side reached the knockout stage for the first time.

Uruguay finished with nine points.

Bolivia needed a win with only a slim chance of staying alive in the tournament, but it was Panama who drew first blood when Jose Fajardo expertly controlled a header into the box, let it bounce and volleyed home in the 22nd minute.

Bolivia equalised in the 69th minute when they cut through Panama's midfield and defence, with Ramiro Vaca finding Bruno Miranda, who slipped his shot past the keeper.

But Panama wrested back control of qualification 10 minutes later when Eric Davis curled in a cross from the left and Eduardo Guerrero connected with a glancing header.

Panama scored again in added time when Cesar Yanis was put through on goal and he volleyed the ball into the top corner to give them a two-goal cushion, sparking wild celebrations at the Inter&Co Stadium.