a country on the Isthmus of Panama, a narrow piece of land connecting Central and South America, between Costa Rica and Colombia. Population: 2,960,784 (2003). Capital: Panama City. The Panama Canal, a long, narrow stretch of water, was built across the country in 1914 in order to allow ships to sail between the Atlantic and Pacific Oceans.
Definition from the Longman Dictionary of Contemporary English Advanced Learner's Dictionary.