Bi-Weekly Report 7-20 March 2017


The CBRT proceeded with further monetary policy tightening -- attempting to reduce risks of excessive TRY volatility ahead of the mid-April referendum

Unemployment rose for a fourth consecutive year in 2016 -- reaching a 6-year high of 10.9%



GDP growth accelerated in Q4:16



The BSP and GERB parties are broadly neck and neck in the polls ahead of the March 26th parliamentary elections

Economic growth gained momentum in Q4:16



PM A. Vucic is the clear favourite to win the April Presidential elections in the 1st round

The unemployment rate declined for a 4th successive year to an 8-year low of 15.3% in FY:16



Banking sector bottom line reaches a post-crisis high in 2016, despite strong domestic headwinds



Fiscal consolidation continued in FY:16



The pace of economic expansion rose to an 8-year high of 2.8% in FY:16 from 1.7% in FY:15 – well above the EA-19 average of 1.7%

S&P upgraded Cyprus' long-term sovereign debt rating by one notch to BB+ -- one notch below investment grade -- with a stable outlook



The quarterly current account deficit stabilised on an annual basis in Q2:16/17, after 10 consecutive quarters of deterioration, due to a rebound in workers' remittances

The quarterly capital and financial account balance improved markedly to a multi-year high of 3.6% of GDP in Q2:16/17, due to the return of foreign investor confidence following the signing of the loan agreement with the IMF


Appendix: Financial Markets

Bi-Weekly Report 7-20 March 2017