TURKEY
Against the backdrop of a strong carry-over effect from the ultra-accommodative monetary policy carried out throughout most part of 2020, the Turkish economy posted another quarter of robust GDP growth (up 7.0% y-o-y in Q1:21)
The (new) spike in FX volatility, reflecting fears of a premature and frontloaded easing in monetary policy, is due to take a toll on economic activity during the remainder of the year
ROMANIA
The budget deficit is set to narrow to a still high 6.8% of GDP in FY:21, suggesting the need for further serious fiscal consolidation
Despite an increasingly challenging backdrop, the large interest rate differential between Romania and its peers should allow the NBR to delay any tightening until mid-2022
CYPRUS
A fragmented Parliament emerged from the May 30th general elections
Political continuity is expected to be maintained after the elections, despite possible delays in policy implementation
APPENDIX: MACROECONOMIC & FINANCIAL INDICATORS