The language of Panama is Spanish, and yes, some people speak English, but really most don't. A little bit of Spanish on your behalf goes a long way...and the locals appreciate you so much when you try. It's hard to just get by with just English.
In the Panama City area English amongst the 'educated' is more prevalent, but again a lot of people just don't speak English. I think this might change in the near future as more and more schools offer English from early on.
The language most often spoken in Panama is Spanish...the more educated Panamanians speak English however for everyday life it would be useful to learn a little bit of Spanish to get by...growing up my parents & I have always learned the language of our host country...as a child it is an easy task but gets challenging when older however not to despair...just a few classes can take you a long way and put a smile on the local's face:-)
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