ROMANIA
Monetary policy remains cautious, given inflation risks from strong wage growth and very slow fiscal consolidation
Current account deficit is set to remain elevated in the medium-term, with related external financing risks being, however, mitigated by solid non-debt generating inflows
NORTH MACEDONIA
The VMRO-DPMNE scored a landslide victory in the May election but fell short of an absolute majority, seeking now support from the ethnic-Albanian VREDI/VLEN alliance to form a Government
VMRO-DPMNE’s dominance was also confirmed in the Presidential election, with G. Siljanovska-Davkova winning a runoff vote
Further delays in North Macedonia’s accession process are likely on the cards
CYPRUS
The repricing of banks’ excess liquidity placed with the ECB and loan portfolio at higher rates boosted their profitability to record-high levels in FY:23
Reflecting debt-servicing challenges from high inflation and interest rates, provisioning charges were raised in FY:23, despite improved asset quality
APPENDIX:
DETAILED MACROECONOMIC DATA
REGIONAL SNAPSHOT:
MACROECONOMIC INDICATORS
FINANCIAL MARKETS