Bi-Weekly Report 16-29 May 2017
Turkey
President Erdogan resumes his role as Chairman of the ruling AKP party
Buoyant exports contain the deterioration of the current account in Q1:17 to 3.9% of GDP on a 12-month rolling basis
Romania
The current account deficit widened slightly to 2.5% of GDP on a 4-quarter rolling basis in Q1:17 from 2.3% at end-2016, in line with stronger domestic demand
The impending adoption of the unified pay scheme of the public sector threatens macroeconomic and financial stability
Bulgaria
The 4-quarter rolling current account surplus narrowed to 3.8% of GDP in Q1:17 from 4.2% in Q4:16
The tourism sector continued to overperform in Q1:17, sustaining economic growth and the current account surplus
Serbia
The reform drive is set to continue under Vucic's Presidency
The fiscal performance improved markedly in Q1:17, with the 12-month rolling deficit narrowing to 0.6% of GDP in March from 1.3% of GDP in December
FYROM
A new Government finally takes office
Banking sector profitability improved in Q1:17, suggesting that the political turmoil has not affected activity
Albania
The opposition ended their Parliamentary boycott, and voted for a caretaker Government ahead of the June 25th parliamentary elections
The fiscal balance deteriorated slightly in 4M:17, due to pre-election expenditure slippage
Cyprus
A good start to the year for the tourism sector
Egypt
The CBE proceeded with an across-the-board hike to its policy rates by 200 bps to dampen increasing demand-side pressures and anchor inflation expectations
The tourism sector is emerging from a deep crisis, mainly supported by more competitive prices and improved security conditions
Appendix: Financial Markets