CYPRUS
Despite headwinds (from high interest rates and soft external demand), the economy should remain on a strong footing in 2024, underpinned by domestic demand, markedly outperforming the euro area average
Investment is set to accelerate in FY:24, following the deployment of Recovery & Resilience Plan
The consolidation of inflation at lower levels, together with tight labour market conditions, should sustain private consumption
ALBANIA
Albanian economy should continue growing at a healthy pace over the next quarters, thanks to resilient private consumption and an overperforming tourism sector
The high capacity utilization rate bodes well for a rebound in investment as soon as uncertainty subsides and financing costs ease
The elimination of the impact of the appreciation of the Lek, should fuel inflationary pressures, prompting the BoA to keep its monetary policy tighter-for-longer
APPENDIX:
DETAILED MACROECONOMIC DATA
REGIONAL SNAPSHOT: MACROECONOMIC INDICATORS & FINANCIAL MARKETS
Countries in Focus in this Issue: Cyprus & Albania
Southeastern Europe & Mediterranean Emerging Market Economies: Bi-Weekly Report 9 - 22 January 2024