Panama is about 1.4 times smaller than Iceland.

Iceland is approximately 103,000 sq km, while Panama is approximately 75,420 sq km, making Panama 73.22% the size of Iceland. Meanwhile, the population of Iceland is ~357,603 people (4.0 million more people live in Panama).
This to-scale comparison of Iceland vs. Panama uses the Mercator projection, which distorts the size of regions near the poles. Learn more.

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