Weekly Report 27 September - 3 October 2016

Headline inflation declines by 0.7 pps to 7.3% y-o-y between August and September, due to favourable food prices and lower core inflation

Russia resumes charter flights to Turkey, which should ease the pace of decline in tourist arrivals (-31.8% y-o-y in the first eight months of the year)

NBR keeps rates unchanged, but reduces further its minimum reserve requirement rate on FX liabilities

Energy company, NEK, receives state aid

Higher tax revenue and lower capital spending push the 12-month rolling budget into a 7-year high surplus of 0.3% of GDP in August from a deficit of 2.9% of GDP at end-2015

Fiscal performance improves markedly in 8M:16, with the 12-month rolling deficit narrowing to an 8-year low of 2.4% of GDP in August from 3.8% of GDP at end-2015

The 12-month rolling budget deficit narrows significantly to 2.8% of GDP in August from 3.5% in December

FYROM’s competitiveness deteriorates in 2016-17

Albania’s electricity generation rises significantly in H1:16, as a result of abundant rainfall

Strong implementation of the electricity sector reform brings about impressive results

Banking sector bottom line remains broadly unchanged on an annual basis in H1:16

Customer deposits up 18.5% in FY:15/16, supported by the return of confidence

Credit to the private sector up 14.2% in FY:15/16, on the back of improving loan demand and supply

Egypt’s competitiveness remains broadly unchanged in 2016-17