The Central American state of PANAMA is located in the southernmost part of the Central American isthmus, bordering both the Caribbean Sea and the Pacific Ocean. It is the only country in Central America with a coastline on both the Atlantic and Pacific oceans. PANAMA is known for its canal, which connects the Atlantic and Pacific oceans, and is one of the most important shipping routes in the world. The country is also home to a variety of wildlife, including jaguars, sloths, and toucans.