!Panama Panama is a country, Region - Central America, Capital - Panamá, Population in 2003 - 3,120,000, Population density - 41 per sq km, Surface area - 75,517 sq km and Currency - balboa. It was formerly a free port in the State of Colombia. It became independent from Colombia in 1903. It is situated on the Pacific coast of the isthmus of the same name, and an oppressively hot and humid place, is the terminus of the Panama railroad and the seat of a great transit trade. It has a Spanish cathedral. The population, of Indian and negro descent chiefly, is only half what it was when the canal works were in full operation.