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Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
Regional assets recover on subsided Greece-related concerns post the July 12 Euro Summit agreement
REGIONAL MACROECONOMIC DEVELOPMENTS & OUTLOOK
- Sentiment indicators in the region suggest economic rebound to continue in the second quarter
- Good performance of consumer-related sectors is the key driver for the rise in sentiment indicators
- There is little evidence to suggest that recent developments in Greece will have a lasting impact on the economic activity in the region
REGIONAL MARKET DEVELOPMENTS & OUTLOOK
- Despite coming under pressure since end-May, emerging market assets received some respite after the July 12 Euro Summit agreement
- Regional currencies recouped earlier losses and T-bond yields eased from June’s highs
- With Greece-related concerns having been somewhat mitigated lately, the prospect of higher Fed interest rates returned to the forefront and is likely to set the tone for emerging market assets ahead
COUNTRY FOCUS
- Bulgaria: GDP growth in the first quarter largely driven by net exports
- Cyprus: Implementation of Economic Adjustment Programme fully back on track
- Romania: Increased political noise as a result of the anticorruption campaign
- Serbia: IMF completes first review under 3-year €1.2bn SBA
- Special focus: Bank holiday and capital controls in Greece; what can be learned from the Cypriot experience?
Viewer can read the full report herebelow:
REGIONAL MONTHLY JUNE-JULY2015
