South East Europe bi-Monthly (Mar-Apr 2014)

Platon Monokroussos

CESEE markets regain ground after early 2014 sell-off on hopes for further stimulus measures in major economies

CESEE MARKETS

• CESEE stock markets recovered ground over the past few weeks amid expectations for further monetary policy stimulus in the Eurozone and China; additional support provided investor perceptions that the Fed is not in a hurry to hike interest rates
• Regional currencies largely recoup earlier losses thanks to improving risk sentiment
• Political jitters in CESEE region ease for now; as election results provide upside surprises
• Government bonds firm on accommodative monetary conditions and improving growth prospects 

COUNTRY FOCUS

• Serbia: Progressives (SNS) cement strong position in National Assembly

Serbian Progressive Party (SNS) cemented its grip on power for the next four years after a landslide victory in the March 16^thelection.

•  Romania: Budget execution improves significantly in Q1 2014

The general government budget deficit improved significantly in the first three months of the year after unexpectedly posting a surplus in March

• Bulgaria: Breakdown of Q1 GDP data reveals recovery in domestic demand

According to flash NSI estimates, real GDP growth came in at 1.1%YoY in Q1 2014, not much changed compared to 1.2%YoY a quarter earlier. Yet, the breakdown of the data confirmed a recovery in domestic demand.-

SOUTHEAST EUROPE BIMONTHLY MarApr2014