Bi-Weekly Report 23 October - 5 November 2018


Lending activity (FX-adjusted) slowed significantly in 9M:18, on the back of elevated uncertainty and the fading impact of the Credit Guarantee Fund scheme

Customer deposits (FX-adjusted) decelerated markedly in 9M:18, hampered by weakening confidence in the domestic economy

Turkey slipped 3 places to 61st in the 2018 Global Competitiveness Index of the World Economic Forum



Political uncertainty heightened following the Government's call for the removal of the General Prosecutor

Romania's competitiveness improves slightly in 2018



Credit expansion strengthened modestly in 9M:18, providing support to the economic recovery

Customer deposits maintained momentum in 9M:18, in line with solid economic growth

Bulgaria's external competitiveness improves slowly in 2018



The underlying profitability of the banking system improved on an annual basis in Q1:18, keeping ROAE in double digits for a 5th successive quarter



The fiscal deficit narrowed temporarily by 0.7 pps y-o-y to 1.1% of GDP in 9M:18, mainly due to under-executed capital spending

FYROM behind the South Eastern Europe-4 (Bulgaria, Romania, Serbia and Albania) according to the 2018 WEF Competitiveness Report



Albania's competitiveness improves in 2018

Customer deposits (FX-adjusted) strengthened in 9M:18, underpinned by the rebound in economic activity

Credit growth, adjusted for large write-offs and FX variations, is estimated to have posted strong growth of c. 2.4% at end-Q3:18



Net earnings of the banking sector returned to positive territory for the first time in 2 years in H1:18, due to lower provisioning

Cyprus ranked 44th in this year's World Economic Forum Global Competitiveness Index



GDP growth reached a 10-year high of 5.3% in FY:17/18, with a significant rebalancing from consumption towards investment and exports

Egypt ranked 94th in the World Economic Forum's 2018 Global Competitiveness Index


Appendix: Financial Markets

Bi-Weekly Report 23 October - 5 November 2018