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December Economic Indicators Bulletin

  • The international rating agency, S&P, affirmed Albania’s long-term/short-term local and foreign currency sovereign rating at B+/B respectively with a Stable outlook. The rating reflects the country’s low GDP per capita figures and the consistently high public debt, while the outlook reflects its solid fiscal policies and future EU accession.
  • The international rating agency, S&P, affirmed Bulgaria’s long-term/short-term local and foreign currency sovereign rating at BBB/A-2 respectively with a Stable outlook. The rating reflects the country’s stability, sound fiscal policies, low public debt figures as well as a medium-term growth prospect. Further, in mid-December the country signed various memorandums of cooperation with Greece.
  • The results of the interim report on the evaluation of the local financial sector by PIMCO have been made available to the Cypriot government, and according to the announcement the results are within the expectations of the ongoing discussions on the memorandum of understanding. The final results are expected by mid-January, and according to a statement by the Eurogroup the agreement between the country and the troika will be completed in the same month.
  • The winner of the December 9th elections in Romania was the leftist president Victor Ponta; however, political uncertainty persists as the conflict between the new PM and president of the country, Traian Basescu has not been resolved. Further, it is not yet clear whether the newly appointed government will support the previous fiscal consolidation and SBA arrangement.
  • The National Bank of Serbia (NBS) decided in its December monetary policy meeting to increase the key interest rate by 30b.p. to 11.25%, due to the increasing risk of accelerating inflationary pressures. The NBS notes that the current fiscal consolidation has not yet shown its full contribution to the decrease in prices, while it is also expected that low aggregate demand will act as a disinflationary factor in the short term.