Highlights

  • GDP growth in the USA in 1Q17 was revised up from an annualized 0.7% y/y to an annualized 1.2% y/y. The Russian economy expanded 0.5% y/y in 1Q17, while GDP was up 2.4% y/y in Ukraine and 3.4% y/y in Kazakhstan.
  • Inflation in the USA retreated to 2.2% y/y in April 2017 after a 2.4% y/y price increase in the previous month. Inflation in the Eurozone was down from 1.9% y/y in April 2017 to 1.4% y/y in May 2017.
  • In May 2017, the Central Bank policy rate was lowered in Ukraine (from 13.00% to 12.50%) and Russia (from 9.75% to 9.25%) and increased in Georgia (from 6.75% to 7.00%).
  • According to short-term rapid estimates, economic growth in April 2017 came in at 7.1% y/y in Kazakhstan, 3.4% y/y in Armenia, 3.1% y/y in Russia, and 2.1% y/y in Georgia. 4M17 GDP was up 0.5% y/y in Belarus and down 1.2% y/y in Azerbaijan.
  • In April 2017, inflation was flat at 14.4% y/y in Azerbaijan, while it accelerated in Turkey (to 11.9% y/y), Georgia (to 6.1% y/y), and Armenia (to 1.2% y/y). Inflation slowed in Ukraine (to 12.2% y/y), Kazakhstan (to 7.5% y/y), Belarus (to 6.3% y/y), and Russia (to 4.1% y/y) in April 2017.
  • JSC Bank of Georgia, BGEO Group PLC’s banking business subsidiary, successfully placed an inaugural GEL 500mn offering of 11.00% notes due June 2020. J.P. Morgan and Renaissance Capital acted as joint bookrunners, while Galt & Taggart acted as a co-manager. The notes are listed on the Irish Stock Exchange. The issuance was the first international local currency bond offering from the wider CIS region (excluding Russia) in the past ten years and represents a landmark transaction for Georgia.
     

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