TURKEY
The Turkish economy shrinks by less than expected in Q2:19 (down 1.5% y-o-y), supported by increasing net exports and inventory stabilization
Economic activity is set to gain steam on the back of monetary stimulus and supportive base effects
BULGARIA
ECB assessment finds capital shortfall at two domestically-owned banks in the run up to Bulgaria’s participation in the European Banking Union
The banking system’s profitability strengthened in H1:19, mainly due to lower provisioning
SERBIA
Easing inflation and strong appreciation pressures on the RSD strengthened the NBS’ hand to lower its key rate by an additional 25 bps to 2.5%
The fiscal balance deteriorated in H1:19
CYPRUS
The underlying profitability (excluding non-recurrent revenue) of the banking system is estimated to have turned marginally positive in Q1:19, following the negative impact on the bottom line from the cleaning-up of the sector’s balance sheet in H2:18
APPENDIX: FINANCIAL MARKETS