Panama has a fairly strong economy, largely due to a thriving services sector which includes the Panama Canal, financial institutions and tourism. Although the country has an unstable political history, stability has improved in recent years.

Panama's capital, Panama City, is a lively, thriving business, entertainment and shopping centre which extends for 8km along the Pacific coast. It has a mix of modern high rise buildings and traditional Spanish architecture. The old part of the city, with its narrow cobblestone streets and colonial buildings, is a World Heritage Site.

Many expatriates have been attracted to live in Panama, particularly in retirement, and there is a substantial expatriate community, mainly from North America. There are expatriates living in many of the offshore island chains, especially Bocas del Toro, as well as the cities. The attractions of Panama include a favourable climate, pleasant natural environment, low cost of living, discounted shopping and a good infrastructure. Moreover, the government offers incentives to foreign nationals including residency benefits. On the downside, the country remains a little unstable politically, and there are risks to personal safety in some rural areas, while petty crime levels are quite high in the cities. There is also a risk of earthquakes in this region.

Internationally, the most famous artist from Panama is musician Ruben Blades who recently won a Grammy. While the art scene is not up to European levels, you will find a surprising variety of theaters, art galleries and performances by international artists, considering the size of the country and its small population. Famous Latin Artists often perform in Panama City as they pass from South America to North America. New on the scene is a January Jazz Festival which began in 2003. There are also numerous museums, the most popular being the Panama Canal museum, the Panama History Museum, and the Religious Colonial Art Museum.

Cuisine - Because of the amazing amount of commercial activity in Panama, and the upswing in foreign residents, there are a number of very good restaurants throughout the country. Dining out here can be very inexpensive and you will find something good no matter what you are in the mood for. Panama City's old quarter is a good place to enjoy some Spanish Colonial architecture and a fine meal. The local cuisine is fairly plain, with dishes similar to other Latin American countries relying heavily on rice, chicken, and black beans.

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Information courtesy of American-European Real Estate Costa Rica and Rhino Real Estate, Panama. Visit their websites to find prices and photos for 400+ properties in the most popular areas of Costa Rica and Panama.

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