Εβδομαδιαία Επισκόπηση 24-30 Μαίου 2016

Banking sector bottom line improves significantly in Q1:16, despite continued tight macro-prudential measures and persistent funding cost pressures

Current account deficit rises to 2.4% of GDP on a 4-quarter rolling basis in Q1:16 from 1.1% Q4:15, mainly due to higher income outflows

A better trade performance and lower income outflows push up the current account surplus to 1.6% of GDP on a 4-quarter rolling basis in Q1:16 from 1.4% in Q4:15

External rebalancing continues in Q1:16, with the 12-month rolling deficit declining to 4% of GDP, supported by favourable energy prices and buoyant exports

General elections unlikely to take place before December

Fiscal performance improves in 4M:16, with the 12-month rolling budget deficit narrowing to 3.2% of GDP from 3.5% at end-2015

Customer deposit growth (FX-adjusted) moderates slightly in Q1:16 (up 1.5% y-o-y) compared with 2.1% at end-2015

Credit growth, adjusted for large write-offs and FX variations, is estimated to have posted robust growth of c. 3.0% in Q1:15

Tourist arrivals rise sharply in November-April, mainly due to heightening security concerns in neighbouring competitors -- Turkey and Egypt

Tourist receipts strengthen in November-February, but at a slower pace than arrivals

Real GDP growth moderated to 3.5% y-o-y in H1:15/16 (July- December 2015) from a multi-year high of 4.8% a year earlier