Panamá is a country located in Central America, bordered by Costa Rica to the west and Colombia to the southeast. It is known for the Panama Canal, a significant waterway that connects the Atlantic Ocean to the Pacific Ocean, facilitating international maritime trade. The capital city is Panama City, which is a vibrant urban center with a mix of modern skyscrapers and historic sites. The official language of Panamá is Spanish, and the country has a diverse culture influenced by its indigenous peoples, Spanish colonization, and Afro-Caribbean heritage. The economy is primarily based on services, particularly through the canal and banking sectors, making it one of the most prosperous nations in Central America.