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Panama, officially the Republic of Panama, is the southern most country of Central America. Situated on an isthmus, some categorize it as a transcontinental nation connecting the north and south part of America. It is bordered by Costa Rica to the north-west, Colombia to the south-east, the Caribbean Sea to the north and the Pacific Ocean to the south. It is an international business center and is also a transit country. Although Panama is also the 3rd largest economy in Central America, after Guatemala and Costa Rica, it has the largest expenditure on resource consumption, making the country the largest consumer in Central America. The dominant feature of the country's landform is the central spine of mountains and hills that form the continental divide. The climate is tropical maritime; hot,humid, cloudy; prolonged rainy season (May to January), short dry season(January to May).

According to the CIA World Factbook, Panama has a population of 3,292,693. The majority of the population, 70% is mestizo. The rest is 14% Amerindian and mixed West Indian, 10% white and 6% Amerindian.

Panama's dollarized economy rests primarily on a well-developed services sector that accounts for two-thirds of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. Economic growth will be bolstered by the Panama Canal expansion project that began in 2007 and should be completed by 2014 at a cost of $5.3 billion (about 30% of current GDP). The expansion project will more than double the Canal's capacity, enabling it to accommodate ships that are now too large to transverse the transoceanic crossway and should help to reduce the high unemployment rate. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. Not a CAFTA signatory, Panama in December 2006 independently negotiated a free trade agreement with the US, which, when implemented, will help promote the country's economic growth.

Panama City is currently experiencing a real estate boom. Tourists and retirees are arriving in greater quantities and consequently helping the local real estate market. Close to thirty-thousand Americans will be choosing Panama as their retirement home in the upcoming years and this will be a key development for the country which already has about three million people. Attractive weather and low cost of living along with a firm economy serve as attraction points. The government of Panama has put together a very liberal package for the retirees offering tax exemptions, discounts on transportation and meals. Around 300 tower projects, making up more than 40,000 units, are reportedly being constructed or publicly announced. Even the Trump Ocean Club International Hotel and Tower, part of Donald Trump’s $400-million project in Panama City, has started construction.