Southeastern Europe & Mediterranean Emerging Market Economies: Bi-Weekly Report 25 November - 8 December 2025

CYPRUS
Although the relocation of foreign businesses to the island has led to a wider current account deficit due to the significant repatriation of profits, it has also contributed to the expansion and growing diversification of the economy’s service export base

The current account deficit is more than fully financed by (non-debt generating) FDI inflows, driving a continued improvement in the economy’s net international investment position


NORTH MACEDONIA
GDP growth is estimated to have firmed to 3.3% in FY:25 from 3.0% in FY:24, underpinned by stronger fixed investment and public consumption stage

Despite restrained policies, economic growth should maintain momentum over the forecast horizon, hovering around its long-term potential of c. 3¼%



APPENDIX:
DETAILED MACROECONOMIC DATA
REGIONAL SNAPSHOT:  
        MACROECONOMIC INDICATORS
        FINANCIAL MARKETS