Macro Watch: Argentina, Panama

Argentina's GDP grew 3.6% year-on-year in the first quarter, statistics agency Indec said.

The data will be welcomed by embattled government officials in Buenos Aires, who have tapped the IMF for a US$50bn standby credit line to help support the peso and fiscal consolidation efforts.

Imports of goods and services grew 16.5% year-on-year while exports grew at a pace of 6.4%. Gross capital formation was up 18.3%.

Compared with the last quarter of 2017, GDP grew 1.1%.

Economists expect the country's economy to lose steam this year, with high interest rates, currently at 40%, and inflation, currently around 26%, key culprits.

Pressure has been mounting on the peso since the start of the year - on account of factors such as weaker capital flows and a stronger dollar - with a sharp decline observed since late April.

***

Panama reported that its GDP grew 4.2% year-on-year in the first quarter.

Statistics agency Inec cited commerce, transport and communications, financial intermediation, construction and government services as key drivers.

Financial intermediation activity grew 4.1%, with the insurance segment reporting an uptick of 3.2%.

The UN's Eclac forecasts that Panama's economy will grow at a pace of 5.6% this year, the fastest in the region after Antigua and Barbuda (5.8%).