Weekly Report 1-7 March 2016

Turkey and the EU agree on draft proposal to tackle the refugee crisis

Headline inflation eases to 8.8% y-o-y in February, due to a sharp correction in food prices

Fiscal performance improves temporarily in January, with the 12-month rolling budget deficit easing slightly to 1.4% of GDP

Fiscal performance improves markedly in January, with the 12-month rolling budget deficit narrowing to 1.8% of GDP

Significant external rebalancing in FY:15, with the current account deficit narrowing by 1.2 pps y-o-y to 4.8% of GDP

Banking sector bottom line surges to an all-time high in FY:15

Adjusted for FX variations, customer deposit growth remains broadly unchanged in 2015 (up 2.1% y-o-y)

Credit growth, adjusted for large write-offs and FX variations, is estimated to have posted robust growth of c. 3.5% in FY:15

Cyprus exits its 3-year adjustment programme

Deflation accelerates sharply to a 6-month high of -2.6% y-o-y in February

Tourism has been hit hard since October, following the terrorist bombing of a Russian plane

Suez Canal receipts decline in the first 7 months of the fiscal year, due to valuation effects