Panama

Situated on the thin stretch of land that connects North and South America, Panama boasts ports on both oceans and serves as the passageway for 10% of world maritime traffic. The Panama Canal, the world’s second-largest free trade zone, attracts substantial foreign direct investment and bolsters the country’s status as a regional banking and financial center. Panama’s dollar-based economy, low inflation and stable democratic government further enhance its appeal. Additionally, Panama has sustained some of the highest economic growth rates in Central America for the past few decades.

However, Panama also faces challenges. Despite its status as an upper-middle-income economy, inequality among its 4.5 million inhabitants persists, exacerbated by unemployment and a lack of skilled labor. High debt levels, corruption and exposure to both North and South American economic shocks pose additional concerns.