Bi-Weekly Report 3 – 16 March 2020
ROMANIA
GDP growth rebounded in Q4:19 (up 4.3% y-o-y), bolstered by fiscal stimulus
COVID-19 pandemic hits Romania at a time of limited fiscal flexibility
BULGARIA
Economy maintains a steady, though modest, growth rate in Q4:19 (up 2.9% y-o-y)
Economic growth is set to moderate sharply in the aftermath of the COVID-19 outbreak, but become more balanced
SERBIA
The NBS unexpectedly proceeded with a 50 bp cut to its key policy rate, amid COVID-19 concerns
Following significant tightening over the past years, the fiscal stance remained expansionary for a 2nd consecutive year in FY:19
Increased spending to counter the impact of COVID-19 is set to push the FY:20 Budget above its deficit target of 0.5% of GDP
APPENDIX: FINANCIAL MARKETS