Highlights

  • Real GDP in the US grew at a 3.1% annualized rate (3rd estimate) in 1Q19, unchanged from the 2nd estimate. Unemployment rate was 3.7% in June 2019, up from 3.6% in previous month.
  • Chinese economic growth slowed to 6.2% y/y in 2Q19, after growing 6.4% y/y in 1Q19.
  • In May 2019, economic growth was 7.3% y/y in Armenia, 4.7% y/y in Georgia, 2.2% y/y in Kazakhstan and -0.3% y/y in Russia, based on preliminary data. In 5M19, real GDP growth was 2.2% y/y in Azerbaijan and 1.0% y/y in Belarus.
  • Annual inflation in the US was 1.6% in June 2019, down from 1.8% in previous month. Based on the Eurostat flash estimate, annual inflation in EU19 was 1.3% in June 2019, up from 1.2% in May 2019.
  • In June 2019, annual inflation was above the target level in Georgia (4.3%), Russia (4.7%), Belarus (5.7%), Ukraine (9.0%) and Turkey (15.7%); inflation was within the target range in Kazakhstan (5.4%), and below the target in Armenia (2.5%). Annual inflation was 2.9% in Azerbaijan in June 2019.
  • Fitch downgraded the sovereign credit rating of Turkey to BB- from BB keeping negative outlook on 12 July 2019.
  • On 12 and 26 June 2019, TBC Bank issued US$ 300mn 5-year and US$ 125mn perpetual bonds, respectively. Both issues are listed on Euronext Dublin and Georgian Stock Exchange markets with 5.750% coupon rate for 5-year bond and 10.775% for perpetual.

Please see the full report for detailed coverage of the fixed income markets of Georgia, Armenia, Azerbaijan, Belarus, Kazakhstan, and Ukraine.