Panama is the southernmost country of Central America and, in turn, North America. Situated on an isthmus connecting North and South America, some categorize it as a transcontinental nation. It is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. Its size is 75,000 km² with an estimated population of 3,300,000. Its capital is Panama City.

Panama is home to an international business center. Although Panama is only the fourth largest economy in Central America, behind those of Guatemala, Costa Rica and El Salvador, it is the fastest growing economy and the largest per capita consumer in Central America.