Bi-Weekly Report 13-26 June 2017


Buoyant exports contained the widening of the 12-month rolling current account deficit to 4.1% of GDP in April from 3.8% of GDP in December

The seasonally-adjusted unemployment rate declined for the first time in 4 quarters to 11.7% in Q1:17 on a quarterly basis



A new Cabinet is sworn in, following the ousting by the ruling coalition of its PM in a vote of "no confidence".

The banking sector's bottom line improved in Q1:17, mainly due to a slowdown in provisioning



The profitability of the banking system deteriorated in Q1:17, due to lower pre-provision net operating income



Serbia opened two additional Chapters in EU accession talks

A temporary sharp economic slowdown in Q1:17, due to unfavourable agricultural, construction and electricity output, reflecting a harsh winter



The unemployment rate reached a recent low of 22.9% in Q1:17, on the back of government-supported employment

Declining unemployment and improving employment keep nominal and real wage growth at robust levels



Reform drive to gain momentum, following the landslide victory of the ruling Socialist Party of PM E. Rama in the June 25th parliamentary elections



Cyprus tapped international markets for the second time after exiting the economic adjustment programme in Q1:16

Real estate prices posted their lowest pace of decline in the past 6 years in FY:16 (-1.4%)



The current account deficit (CAD) declined to 6.3% of GDP in Q3:16/17 from a 3-decade high of 6.5% in Q2:16/17 on a 4-quarter rolling basis, as the IMF-supported economic programme began to bear fruit


Appendix: Financial Markets

Bi-Weekly Report 13-26 June 2017