Regional Economics and Market Strategy Monthly (Thursday, December 03, 2015)

Regional markets outperform on expectations for further ECB easing 

• Most regional economies record strong GDP growth readings in Q3 2015
• Regional economies supported by accommodative monetary policies,  improved absorption of EU funds and low world commodity prices
• Lower world energy prices maintain inflationary pressures subdued, supporting real disposable  incomes and providing more flexibility to corporate and household balance sheets in the short-term 

• Emerging stock markets under pressure on increased expectations for a Fed rate hike in December; regional markets outperform on expectations for further ECB monetary stimulus
• CESEE FX markets affected by (geo) political developments in the broader region
• Regional sovereign debt markets supported by accommodative monetary policies
• ECB and Fed meetings in December key for regional markets performance ahead

• Bulgaria: Fiscal consolidation postponed for next year
• Cyprus: GDP growth strengthened in Q3 2015
• Romania: New technocratic government sworn in mid-November
• ·   Serbia: Q3 2015 GDP data signal continuation of domestic economic recovery

Regional strong growth momentum sustained in Q3-2015

Source: Bloomberg, Reuters, National Authorities, Eurobank Research

Viewers can read the full report herebelow:

REGIONAL MONTHLY NOVEMBER2015