means A narrow country in Central America connecting North and South America, famous for its canal linking the Atlantic and Pacific oceans; also the lightweight straw hat and the type of fine canvas weave.

from From the name of the country, which the Spanish took from an Indigenous (likely Cuna or related) word — the popular story is that it meant 'place of abundant fish' or 'many butterflies,' though the precise sense is genuinely uncertain. The hat got its misleading name because the lightweight straw toppers, actually woven in Ecuador, were shipped through Panama and bought by gold-rush travelers and canal workers passing through — so the world named the hat for its layover, not its home.