Weekly Report 6-12 December 2016
Turkey
Economic activity contracts by 1.8% y-o-y in Q3:16, mainly due to heightened uncertainty following the July 15th failed coup
The current account deteriorates for a third consecutive month in October
Romania
The centre-left Social Democratic Party (PSD) returns to power
Bulgaria
Economic growth weakens slightly in Q3:16, due to the sharp drop in fixed investment
Serbia
Growth reaches a high of 2.7% y-o-y in 9M:16
FYROM
The outgoing coalition Government returns to power
The current account deficit widens to 2.3% of GDP on a 12-month rolling basis in September, mainly due to a sharp decline in private transfers
Albania
The European Council delays the opening of EU accession negotiations with Albania -- a candidate country since June 2014
Headline inflation rises to 1.9% y-o-y in November, due to a deterioration in core inflation and unfavourable energy prices
Risks of an overheating of the economy and increasing inflationary pressures strengthen the BoA's hand to initiate a new cycle of monetary policy tightening
Cyprus
GDP growth reaches an 8-year high of 2.7% y-o-y in 9M:16
Egypt
Headline inflation rises sharply to an 8-year high of 19.4% y-o-y in November from 13.9% in October, following the floatation of the domestic currency and the cut in fuel subsidies
The CBE is likely to hike its policy rates further, by 200 bps, by end-March
Appendix: Financial Markets