Highlights

  • GDP growth in the USA in 1Q17 came in at annualized 0.7% q/q, well below expectations, while growth in the Eurozone was at 1.7% y/y, in line with estimates. Meanwhile, growth in China, at 6.9% y/y, slightly exceeded analyst estimates.
  • Inflation in the USA came in at 2.4% y/y in March 2017, slightly below expectations, while Eurozone inflation was at 1.2% y/y in April 2017, above consensus forecasts.
  • Central Bank policy rate was lowered in Belarus (from 15.0% to 14.0%), Ukraine (from 14.0% to 13.0%), and Russia (from 9.75% to 9.25%) in April 2017.
  • According to short-term rapid estimates, economic growth in March 2017 came in at 6.8% y/y in Armenia and Kazakhstan and at 5.3% y/y in Georgia. 1Q17 GDP was up 0.3% y/y in Belarus and down 0.9% y/y in Azerbaijan.
  • In March 2017 inflation accelerated in Azerbaijan (to 14.4% y/y), Turkey (to 11.3% y/y), and Ukraine (to 15.1% y/y). Inflation slowed in Belarus (to 6.4% y/y), Russia (to 4.3% y/y), Kazakhstan (to 7.7% y/y), and Georgia (to 5.4% y/y), while prices in Armenia were down 0.1% y/y in March 2017.

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