Bi-Weekly Report 21 February-6 March 2017


Headline inflation reached double digits, for the first time in 6 years, in February

Unconventional monetary policy tightening to continue if deemed necessary -- at least until the mid-April referendum



The current account deficit rose sharply to 2.4% of GDP in FY:16 from 1.2% in FY:15, in line with stronger private consumption



A better trade performance and lower income outflows push up the current account surplus to a high 3.8% of GDP in FY:16 from 0.4% in FY:15

Tourism activity rebounded in FY:16, sustaining economic growth and boosting the CAS



FX-adjusted customer deposit growth reached a 7-year high of 10.5% y-o-y in December, reflecting strengthening confidence in the domestic economy

Credit activity growth (adjusted for FX movements and once-offs) accelerated to a 4-year high in 2016, supported by stronger loan supply and demand



Domestic political crisis escalates

The current account deficit widened to a 4-year high of 3.2% of GDP in 2016



The IMF Board approved the combined last two reviews, concluding Albania's EUR 370.6mn Extended-Fund Facility



Tourist receipts posted a 5-year high of EUR 2.4bn (13.4% of GDP) in 2016, mainly on the back of a strong rebound in arrivals from Russia

Unemployment eased in 2016 for a second consecutive year



The unemployment rate declined significantly, by 0.4 pps y-o-y to a 4-year low of 12.4% in Q2:16/17, following the return of confidence in the Egyptian economy

FX reserves have increased sharply, by USD 7.5bn to a 68-month high of USD 26.5bn, since the signing of a 3-year Extended Fund Facility with the IMF last November


Appendix: Financial Markets

Bi-Weekly Report 21 February-6 March 2017