GLOBAL & REGIONAL DAILY (Tuesday 2 February, 2021)
GLOBAL & REGIONAL DAILY
February 2 2021
Risk-on sentiment prevailed earlier today amid increased optimism about further sizable US fiscal support and eased concerns about the possible ramifications of retail buying in equity markets. Nevertheless, the USD retained a positive tone amid lingering worries over vaccine availability and global economic growth.
The Minister of Finance Christos Staikouras stated in an interview that cash reserves currently amount to €31.2bn but the fiscal cost of this year’s support measures will likely exceed the €7.5bn foreseen in the 2021 Budget.
According to yesterday’s flash estimate, real GDP contracted by -1.3% YoY in Q42020, implying a -0.95% recession for the whole year. The outlook is gloomier in Bulgaria as GDP is forecast to shrink by -4.6% in 2020, according to yesterday’s Article IV consultation conclusions, with a gradual projected rebound of 3.6% in 2021.
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