Highlights

  • US GDP growth was up to an annualized 3.0% y/y (second estimate) in 2Q17 from an annualized 1.2% y/y in 1Q17.  GDP growth in EU19 came in at 2.2% y/y in 2Q17 after 1.9% y/y growth in 1Q17. Based on preliminary estimates, the Russian economy grew 2.5% y/y in 2Q17.
  • Based on rapid estimates, economic growth in July 2017 came in at 7.0% y/y in Armenia, 4.3% y/y in Kazakhstan, 3.8% y/y in Georgia, and 1.8% y/y in Russia. In 7M17, GDP was up 1.1% y/y in Belarus and down 1.0% y/y in Azerbaijan. GDP in Ukraine was up 2.4% y/y in 2Q17.
  • Annual inflation in the USA was up to 1.7% in July 2017 from 1.6% in the previous month. Based on the Eurostat flash estimate, annual inflation in EU19 edged up to 1.5% in August 2017 from 1.3% in July 2017.
  • In August 2017, annual inflation declined in Georgia (5.7%), Russia (3.3%), and Kazakhstan (7.0%); increased in Turkey (10.7%); and remained stable in Armenia (0.9%). July 2017 figures indicate an increase in annual inflation to 15.9% and 14.6% in Ukraine and Azerbaijan, respectively, and a decrease to 6.0% in Belarus.
  • Central Bank policy rate was lowered in Kazakhstan from 10.50% to 10.25% in August 2017 and has remained unchanged in other countries.
     

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