Central America Backpacking

Panama, officially the Republic of Panama, is the southernmost country of both Central America and, in turn, North America. Situated on the isthmus connecting North and South America, 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. The capital is Panama City.

Panama is an international business center, and has the third or fourth largest economy in Central America. It is also the fastest growing economy and the largest per capita consumer in Central America.