| There's always questionable food everywhere.
The most important thing to remember is to never eat street food - you never know if the vendors take the appropriate steps to wash food correctly before they prepare it. EVEN IF you see people going up to the stand and eating the food, it doesn't mean that your stomach will be able to handle it. Ask a trusted tour guide or your hotel concierge on safe places to eat.
I'm not sure if it's the same for Panama, but I know in Mexico the water is very unsafe. I'd suggest drinking mostly bottled water and other bottled products to make sure you are safe. Also, be sure to watch out for ice. Even if the water is bottled, the water in the ice may not be purified! Brushing your teeth can also be an interesting experience.
I'm going to assume that it's safe to eat in Panama. A big revenue of theirs is tourism, so they wouldn't make money if they gave you unsafe food.
Good luck and have fun on your trip! | 
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