The Country

The Republic of Panama is the southernmost country of Central America and is home to approximately 3.5 million people.  Situated on the isthmus, connecting North and south America, it is bordered by Costa Rica to the West, Colombia to the southeast, the Caribbean to the North and the Pacific Ocean to the South.

Panama's dollar-based economy rests primarily on a well-developed services sector that accounts for more than three-quarters of GDP. Services include operating the Panama Canal, logistics, 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 is scheduled to be completed by 2014 at a cost of $5.3 billion - about 10% of current GDP. The expansion project will more than double the Canal's capacity, enabling it to accommodate ships that are too large to traverse the existing canal.

Panama has the third or fourth largest economy in Central America and is also the fastest growing economy and the largest per capita consumer in Central America.  Its major exports  include gold, bananas, shrimp, sugar, iron and steel waste, pineapples and watermelons.  The top import commodities include fuel products, medicines, vehicles, iron and steel rods and cellular phones.

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