Bi-Weekly Report 6-19 March 2018


The fiscal performance became more expansionary in 2M:18

The seasonally-adjusted unemployment rate declined for a 4th consecutive quarter in Q4:17 (to 10.1%)



Economic growth reached a post-global crisis high of 7.0% in 2017 against 4.8% in FY:16

Public debt financing costs to rise in FY:18



Economic growth remained solid in FY:17, up 3.6%

The labour market tightened further in Q4:17



Activity slowed temporarily in FY:17 (up 1.9%), mainly due to unfavourable weather conditions

The NBS unexpectedly proceeded with an additional 25 bp cut of its central rate to 3.25%



Economic activity recovered for a second consecutive quarter in Q4:17 (up 1.2% y-o-y), supported by the dissipation of domestic political uncertainty

Labour market conditions tightened further in FY:17, despite economic stagnation



General elections led to a more expansionary fiscal policy in FY:17



The economic recovery accelerated in FY:17, with GDP growth reaching a post-crisis high of 3.9%

The unemployment rate continued on its downward trend, reaching a 6-year low of 11.0% in FY:17



Headline inflation declined to 14.4% y-o-y in February, permitting the Central Bank to proceed with another 100 bps cut of its key rates at its March 29th MPC meeting

The tourism sector continued its recovery in Q2:17/18, mainly supported by a cheaper domestic currency and improved security conditions


Appendix: Financial Markets

Bi-Weekly Report 6-19 March 2018