Bi-Weekly Report 6-19 February 2018


Banking sector bottom line reached a record high in FY:17, mainly due to the authorities' strong support to credit activity



The NBR hiked its key rate by another 25 bps to 2.25%

Credit expansion strengthened in FY:17, sustaining economic activity

The deposits base continued to expand strongly in FY:17, in line with solid economic activity



Credit expansion picked-up in FY:17, underpinning economic recovery

Customer deposits gained momentum in FY:17, due to solid economic growth

The residential real estate market maintained its strong momentum in Q3:17



The profitability of the banking system is estimated to have improved markedly in FY:17, with ROAE reaching double digits --  for the first time on record



Fitch upgraded FYROM's outlook to positive and affirmed its 'BB' status

Tourist activity gained momentum in FY:17, contributing significantly to the improvement in the current account balance



Albania is on track to secure a non-conditional recommendation in April to open EU accession talks, according to the European Commission's 2018 Enlargement Strategy

The unemployment rate is estimated to have declined for a 3rd successive year to (a 5-year low of) 14.2% in FY:17



A buoyant tourist activity in FY:17, despite increasing competition from neighbouring Turkey and Egypt

Property prices maintained momentum, rising by 1.4% y-o-y in Q3:17



The CBE initiated a cycle of monetary policy loosening, cutting its key interest rates by 100 bps

The fiscal deficit narrowed in the first four months of the fiscal year, mainly on tax revenue overperformance


Appendix: Financial Markets

Bi-Weekly Report 6-19 February 2018