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Economic Indicators Bulletin in Southeastern Europe - October 2013

  • On October 30th, the Bank of Albania (BoA) decided to keep its key policy rate unchanged at the historically low level of 3.5%. The last rate cut, of 25 bps, was in July. The BoA estimates that the inflation target of 3.0% will be achieved in the medium term, while weak demand and economic growth will keep prices at low levels.
  • In Bulgaria, the 2014 draft Budget Bill aims to boost economic and financial activity, as well as to improve public expenditure efficiency.
  • Cyprus’ government deficit in 2012, according to Eurostat, was revised marginally upwards to 6.4% of GDP from 6.3% in the first estimate, due to an increase in public spending, while public debt was revised upwards to 86.6% of GDP from 85.8% in the first estimate.
  • Romania’s government deficit in 2012, according to Eurostat, was revised marginally upwards to 3.0% of GDP from 2.9% in the first estimate, due to an increase in public spending, while public debt was revised upwards to 37.9% of GDP from 37.8% in the first estimate.
  • The National Bank of Serbia (NBS) decided to cut its key policy rate by 50 basis points to 10.5% in its October 18th meeting, as inflation is within the NBS’s target tolerance band. The new fiscal consolidation measures, weak final demand and the current monetary policy are expected to keep inflation at low levels.