Panama, officially the Republic of Panama, is a country in Latin America at the southern end of Central America, bordering South America. It is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean Sea to the north, and the Pacific Ocean to the south. Its capital and largest city is Panama City, whose metropolitan area is home to nearly half the country's over 4 million inhabitants.

Central America is a subregion of North America. Its political boundaries are defined as bordering Mexico to the north, Colombia to the south, the Caribbean Sea to the east, and the Pacific Ocean to the west. Central America is usually defined as consisting of seven countries: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. Within Central America is the Mesoamerican biodiversity hotspot, which extends from northern Guatemala to central Panama. Due to the presence of several active geologic faults and the Central America Volcanic Arc, there is a high amount of seismic activity in the region, such as volcanic eruptions and earthquakes, which has resulted in death, injury, and property damage.