Bi-Weekly Report 12-25 September 2017

​Turkey

A less expansionary fiscal stance in sight in 9-12M:17 to help attenuate the risk of overheating of the economy

Buoyant exports and the recovery in the tourism sector contained the widening of the 12-month rolling current account deficit to 4.4% of GDP in July from 3.8% of GDP in December

Romania

The banking sector's bottom line improved further in Q2:17, mainly due to a slowdown in provisioning

Bulgaria

The profitability of the banking system, adjusted for base effects, improved in Q2:17, mainly due to lower provisioning

Serbia

Economic activity remained weak and below expectations in Q2:17 (up 1.3% y-o-y), due to unfavourable weather conditions

The NBS unexpectedly proceeded with a 25 bp rate cut to 3.75%

FYROM

Economic activity contracted for the first time in 5 years in H1:17 (-0.9% y-o-y), due to protracted uncertainty after the December 2016 general elections

Labour market conditions tightened further in H1:17, supported by continued active labour market policies

Albania

Reform drive to gain momentum, following the formation of a new Cabinet

The current account deficit continued to narrow on an annual basis in H1:17, on the back of a strong performance in exports and services

Cyprus

GDP growth remained at a post crisis high of 3.6% y-o-y for a second consecutive quarter in Q2:17

An across-the-board improvement in employment pushed down unemployment in Q2:17

Egypt

External adjustment resumed in FY:16/17, with the current account deficit narrowing by c. 22.0% to USD 15.6bn (6.5% of GDP) following the flotation of the EGP

The capital and financial account, excluding IFI support, also improved in FY:16/17 and more than covered the CAD

Appendix: Financial Markets