Highlights

  • US GDP growth accelerated from an annualized 1.2% y/y (revised) in 1Q17 to 2.6% y/y (‘advance’ estimate) in 2Q17. GDP growth in EU19 was also higher at 2.1% y/y in 2Q17 vs 1.9% y/y in 1Q17. The Chinese economy grew 6.9% y/y in 2Q17. 
  • According to rapid estimates, in June 2017 economic growth came in at 5.8% y/y in Kazakhstan, 5.1% y/y in Armenia, 4.8% y/y in Russia, and 4.6% y/y in Georgia. In 1H17, GDP was up 1.0% y/y in Belarus and down 1.3% y/y in Azerbaijan. Ukraine’s GDP was up 2.5% y/y in 1Q17.
  • Annual inflation in the USA retreated to 1.6% in June 2017 from 1.9% in the previous month. According to the Eurostat flash estimate, EU19 annual inflation was stable at 1.3% in July 2017.
  • In July 2017, annual inflation retreated in Georgia (6.0%), Turkey (9.8%), Russia (3.9%), Kazakhstan (7.1%), and Armenia (0.9%). June 2017 figures indicate an increase in annual inflation to 15.6% and 6.5% in Ukraine and Belarus, respectively, and a decrease in Azerbaijan to 14.4%.
  • Central Bank policy rate was lowered in Belarus (from 13.0% to 12.0%) in July 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.