Key facts
- Argentina's economic activity grew 3.5% month-over-month in March.
- Argentina's economic activity grew 5.5% year-over-year in March.
- Argentina's Q1 economic activity expanded 0.3% quarter-over-quarter.
- Argentina's Q1 economic activity expanded 1.7% year-over-year.
- Israel's industrial production fell 1.1% in Q1.
- Czech Republic's Q1 2026 GDP growth was revised up to 2.2% year-over-year.
- Turkey's Q1 GDP grew 2.5% year-on-year.
- Turkey's exports declined 12.7% in Q1.
- Russia's GDP growth slowed to 1.3% year-over-year in April.
- Hungary's Q1 GDP grew 1.7% year-on-year.
Economic activity showed divergent trends across several countries in the first quarter and early second quarter. Argentina's economic activity increased by 3.5% month-over-month and 5.5% year-over-year in March. First-quarter data for Argentina indicated a 0.3% quarter-over-quarter and 1.7% year-over-year expansion, with agriculture, fishing, mining, and financial intermediation as key drivers, although manufacturing and services experienced softness.
In contrast, Israel's industrial production decreased by 1.1% on a seasonally adjusted annualized basis during the first quarter. This decline is attributed to the conflict with Iran and Hezbollah, which affected low-tech manufacturing and extraction, alongside a worsening of labor market indicators. Despite these challenges, sales figures in Israel remained in expansionary territory, and business confidence saw an improvement in April-May.
The Czech Republic's Q1 2026 GDP growth was revised upward to 2.2% year-over-year, an increase from the preliminary estimate of 2.1%. The Iran conflict has had a notable impact on headline growth, particularly affecting energy imports, trade, and transportation sectors. The country's growth potential continues to be limited by a sluggish recovery among its key Eurozone trading partners.
Turkey's economy expanded by 2.5% year-on-year in the first quarter, a figure that fell short of market expectations. While household spending rose by 4.8%, a significant 12.7% decline in exports and a contraction in industrial manufacturing acted as headwinds to overall growth.
Russia experienced a slowdown in GDP growth, reaching 1.3% year-over-year in April, marking a deceleration from previous periods. This slowdown occurred despite a notable increase in retail sales and the continuation of record-low unemployment rates. Hungary's Gross Domestic Product (GDP) grew by 1.7% year-on-year in the first quarter, aligning with the preliminary estimate. The recovery was bolstered by inventory increases and government income distribution policies, though concerns persist regarding the sustainability of this upturn.