From Longman Dictionary of Contemporary EnglishPanamaPanama a country on the Isthmus of Panama, a narrow piece of land connecting Central and South America, between Costa Rica and Colombia. Population: 3,559,408 (2014). Capital: Panama City. Panama is known especially for the Panama Canal, a long, narrow stretch of water that was built across the country in 1914 in order to allow ships to sail between the Atlantic and Pacific Oceans. → see also Noriega, Manuel —Panamanian /ˌpænəˈmeɪniən◂/ noun, adjectiveOrigin panama (1800-1900) Panama, from where such hats (made in Ecuador) were exported