Daily Overview of Global Markets & the SEE Region (Wednesday, 22 May, 2019)
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: UK PM Theresa May offered yesterday a number of sweeteners to MPs, including the chance to vote on whether to hold a second referendum to ratify the UK’s exit from the EU, conditional on backing her Brexit bill. However, her commitments are not expected to break the impasse over Brexit and her deal will probably be rejected for the fourth time. On the back of mounting UK political uncertainty, the GBP remained under pressure across the board. Focus today is on the FOMC minutes from the May policy meeting, which are expected to communicate that the Committee remains data-dependent.
GREECE: According to the Bank of Greece, in Q1 2019 the current account deficit came in at €3.7 billion, up by €420 million YoY due to the deterioration in the balance of goods (deterioration €703 million) and the secondary income account (deterioration €251 million), which were only partly offset by an improvement in the services balance (improvement €460 million) and the primary income account (improvement €74 million).
SOUTH EASTERN EUROPE
SERBIA: Following two weeks of consultations with the Serbian authorities, the IMF Mission for the 2019 Article IV Consultation and the Second Review under the Policy Coordination Instrument (PCI) concluded yesterday. According to the respective official press release, growth prospects remain robust, public debt is declining, inflation is low and stable, and many key reforms have been implemented. Still a plethora of reforms to strengthen the resilience of the economy remains at stake, as risks to the near-term growth outlook appear tilted to the downside.
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