Highlights

  • US GDP growth in 2Q17 was revised up to an annualized 3.1% y/y (3rd estimate) from an annualized 3.0% y/y (2nd estimate). Revised figures show that GDP growth in EU19 came in at 2.3% y/y in 2Q17 after 2.0% y/y growth in 1Q17. The Turkish economy grew 5.1% y/y in 2Q17 after 5.2% y/y in 1Q17.
  • Based on rapid estimates, economic growth in August 2017 came in at 7.8% y/y in Kazakhstan, 4.3% y/y in Georgia, 2.8% y/y in Russia, and 2.4% y/y in Armenia. In 8M17, GDP was up 1.6% y/y in Belarus and down 1.1% y/y in Azerbaijan. GDP in Ukraine was revised down to an annualized 2.3% y/y in 2Q17 (from 2.4% y/y).
  • Annual inflation in the US was up to 1.9% in August 2017 from 1.7% in the previous month. Based on the Eurostat flash estimate, annual inflation in EU19 has remained unchanged at 1.5% in September 2017.
  • In September 2017, annual inflation increased in Turkey (11.2%), Kazakhstan (7.1%), Georgia (6.2%), and Armenia (1.0%) and decreased in Russia (3.0%). August 2017 figures indicate an increase in annual inflation to 16.2% in Ukraine and a decrease to 14.0% and 5.3% in Azerbaijan and Belarus, respectively.
  • In September 2017 the Russian and Belarusian central banks lowered their policy rates in response to low inflation to 8.5% and 11.5%, respectively. 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.