Highlights

  • Real GDP growth in the US was revised down to an annualized 2.0% y/y (3rd estimate) in 1Q18 from an annualized 2.2% y/y (2nd estimate). In June 2018, unemployment rate increased by 0.2ppts to 4.0% from 3.8% recorded in previous month.
  • Based on rapid estimates, in May 2018 economic growth came in at 7.5% y/y in Georgia, 5.4% y/y in Armenia, 4.9% y/y in Kazakhstan and 3.7% y/y in Russia. In 5M18, real GDP growth was 4.7% y/y in Belarus and 1.1% y/y in Azerbaijan.
  • In June 2018, annual inflation in the US was 2.9% up from 2.8% in previous month. Based on the Eurostat flash estimate, annual inflation in EU19 was 2.0% in June 2018 up from 1.9% in May 2018.
  • In June 2018, annual inflation was below to the target level in Armenia (0.9%), Georgia (2.2%), Russia (2.3%) and Belarus (4.1%); inflation was below expectation in Azerbaijan (1.9%); inflation was within the target in Kazakhstan (5.9%), and above the target in Ukraine (9.9%) and Turkey (15.4%).
  • Monetary policy rate was cut to 10.0% (from 11.0%) in Azerbaijan and to 10.0% (from 10.5%) in Belarus in June 2018. The policy rate 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.