This is about the capital of Panama. There is also Panama City, Florida.'Panama City, population 584,803 (1990, is the capital of Panama. The city was founded in 1519, and flourished during Spanish colonial times as a major port. It was destroyed in 1671 by Sir Henry Morgan, but rebuilt in 1673. Construction of the Panama Canal brought increased prosperity. Panama City is no longer a port; commerce is handled through neighboring Balboa[?].