Highlights

  • US GDP growth in 1Q17 was revised up to an annualized 1.4% y/y (3rd estimate) from an annualized 1.2% y/y (2nd estimate). GDP growth in EU19 was also revised up to 1.9% y/y in 1Q17 from the previous 1.7% y/y growth estimate. The Turkish economy grew by 5.0% y/y in 1Q17.
  • According to rapid estimates, in May 2017 economic growth came in at 8.9% y/y in Armenia, 7.4% y/y in Kazakhstan, 5.6% y/y in Russia, and 5.3% y/y in Georgia. In 5M17, GDP was up 0.9% y/y in Belarus and down 0.9% y/y in Azerbaijan.
  • Annual inflation in the USA retreated to 1.9% in May 2017 from 2.2% in the previous month. Price pressures also eased in the Eurozone, with annual inflation at 1.3% in June 2017 vs 1.4% in the previous month.
  • In May 2017, annual inflation was flat in Russia (4.1%), while it accelerated in Azerbaijan (15.1%), Ukraine (to 13.5%), and Armenia (1.6%) and slowed in Belarus (6.1%). June 2017 figures indicate an increase in annual inflation in Georgia to 7.1% and a decrease in Turkey to 10.9%. In Kazakhstan inflation has remained unchanged at 7.5% April through June 2017.
  • Central Bank policy rate was lowered in Belarus (from 14.0% to 13.0%), Kazakhstan (from 11.0% to 10.5%), and Russia (from 9.25% to 9.00%) in June 2017.
     

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