Bi-Weekly Report 29 August - 11 September 2017


Strong GDP growth momentum maintained in Q2:17 (5.1% y-o-y), supported by buoyant external demand and continued fiscal and quasi-fiscal stimulus

Headline inflation returned to double digits in August and is expected to remain there until November



Political turmoil over fresh Government bid to reform the judiciary

Economic activity continued to overperform in Q2:17



Economic growth gained momentum in Q2:17

Labour market conditions tighten further in Q2:17



The IMF Executive Board completed the 7th review of the ongoing 3-year EUR 1.2bn precautionary SBA

The external adjustment reversed course in Η1:17, due to an unfavourable energy bill



Banking sector profitability rose by a solid 6.6% y-o-y in Q2:17



The banking sector's bottom line strengthened markedly on an annual basis in H1:17, with ROAE returning to double digits



The fiscal performance improved markedly in 7M:17 (by 1.7 pps y-o-y), due to an across-the-board improvement in tax revenue

Real estate prices posted positive growth in Q1:17 (0.2% y-o-y) for the first time in nine years, mainly supported by foreign buyers



GDP growth slowed to 3.8% y-o-y in 9M:16/17 (July 2016-March 2017) from 4.2% a year earlier, mainly on the back of a tight fiscal stance

The tourism sector emerged from a deep crisis, mainly supported by a cheaper domestic currency and improved security conditions


Appendix: Financial Markets

Bi-Weekly Report 29 August - 11 September 2017