WORLD ECONOMIC & MARKET DEVELOPMNTS
GLOBAL MARKETS: European stock markets opened broadly lower on Monday, on mounting global growth concerns amid downbeat January trade data from China. Market caution also prevailed ahead of the Feb. 11 extraordinary Eurogroup where the Greek issue is expected to be the sole issue of discussion.
GREECE: Presenting the government’s programmatic statements before parliament y-day, Greece’s Prime Minister Alexis Tsipras said that the government will not seek an extension of the country’s bailout program stressing that “the Greek people gave a strong and clear mandate to immediately end austerity and change policies”. Discussion in parliament on the government’s programmatic statements will conclude with a vote of confidence late on Tuesday, February 10. In other news, S&P downgraded on Friday Greece’s long-term sovereign credit rating to B- from B.
SOUTH EASTERN EUROPE
SERBIA: According to FinMin’s Fiscal Strategy for 2015, the government expects the domestic economy to remain in recession this year (-0.5%) as well, with a return to positive real GDP growth readings of 1.5% and 2.0% penciled in for 2016 and 2017, respectively.
BULGARIA: According to the Winter 2015 Economic Forecast, the European Commission raised its projection for Bulgaria’s real GDP growth to 0.8% in 2015 from 0.6% previously, however maintaining its 2016 forecast unchanged at 1.0%.
CESEE MARKETS: Emerging stock markets kicked off the week on a negative footing and CEE currencies modestly weakened, after upbeat labour data from the US released on Friday added to the view that the Fed may start hiking interest rates sooner than previously thought. Weak January trade data from China also weighed.
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