Εβδομαδιαία Επισκόπηση 9-15 Φεβρουαρίου 2016

Current account deficit eases to a 6-year low in 2015; however, the quality of its financing deteriorated significantly

Industrial production surges in Q4:15, pointing to stronger-than-initially-estimated real GDP growth

Fiscal deficit narrows to 1.5% of GDP in FY:15, overperforming compared with its target and the FY:14 outcome

Fiscal consolidation resumes in FY:15, with the budget deficit moderating to 2.9% of GDP from 3.7% in FY:14 -- slightly below the EU threshold of 3.0% and its target of 3.3%

Impressive fiscal consolidation in FY:15

Fiscal consolidation resumes in 2015, for the first time since 2011

Headline inflation turns positive in January (+0.1% y-o-y), mainly due to slower food deflation

Headline inflation eases sharply to 1.5% y-o-y in January from 2.0% in December, due to low imported inflation

The cycle of monetary policy easing has likely come to an end

Economic growth reaches a 7-year high of 2.4% y-o-y in Q4:15

Deflation accelerates to -1.3% y-o-y in January, mainly due to a moderation in the prices of volatile fruit & vegetables

Headline inflation eases to 10.1% in January

The signing of an agreement with the Fund will strengthen the CBE’s hand to proceed with sharp rate hikes by the end of this fiscal year (June 2016)