A transcontinental country, its isthmus constitutes the southern most part of a natural land bridge between the continents of North America and South America. It borders Costa Rica to the west, Colombia to the east, the Atlantic Ocean to the north and the Pacific Ocean to the south.

Panama's economy is service-based, heavily weighted toward banking, commerce, and tourism, because of its key geographic location. The economy is based primarily on a well-developed services sector that accounts for nearly 80% of GDP. Services include the Panama Canal, banking, the Colon Free Zone, insurance, container ports, and flagship registry, medical and health, and other business.

The culture, customs, and language of the Panamanians are predominantly Caribbean Spanish. Ethnically, the majority of the population is mestizo or mixed Spanish, Indian, Chinese, and African descent. Spanish is the official and dominant language; English is a common second language spoken by many in business and the professions. More than half the population lives in the Panama City and Colon metropolitan corridor.

Panama's political divisions are 9 provinces ( Bocas del Toro, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos, Panama, Veraguas ), 75 districts or municipalities, 5 indigenous comarcas, and 620 "corregimientos." Panama is divided into 9 provinces (provincias) and 3 provincial-level indigenous territories (comarcas indígenas). There are also 2 sub-provincial comarcas, Kuna de Madugandí and Kuna de Wargandí, which are part of Panama and Darien provinces, respectively.

 

---