CYPRUS
Economic growth strengthened in Q2:25, led by investment (mostly in intellectual property products -- related to booming business activity and firm relocations) and increasingly diversified services exports (mainly tourism and ICT)
GDP growth is set to remain resilient and broad-based over the forecast horizon, at c. 3.0%, slightly above its (strengthened) long-term potential
Risks to our GDP growth forecasts remain tilted to the downside, but strong fiscal balances provide a cushion against potential shocks
NORTH MACEDONIA
GDP growth firmed in H1:25 (to 3.2% y-o-y), underpinned by stronger domestic demand
Economic growth should maintain momentum over the forecast horizon, hovering slightly below its long-term potential of c. 3¼%
ALBANIA
The real estate market is flying high on strong demand, warranting caution
APPENDIX:
DETAILED MACROECONOMIC DATA
REGIONAL SNAPSHOT:
MACROECONOMIC INDICATORS
FINANCIAL MARKETS
Countries in Focus in this Issue: Cyprus, North Macedonia and Albania
Southeastern Europe & Mediterranean Emerging Market Economies: Bi-Weekly Report 2 - 15 September 2025