FDI down 32.9% y/y
FDI was down 32.9% y/y to US$ 279mn (7.6% of GDP) in 1Q18, according to GeoStat’s preliminary figures. The major reason behind this decrease was ownership transfer from non-resident to resident companies (e.g. acquisition of Geocell by Silknet) and reduction of debt liabilities to non-resident direct investors. The financial sector was the largest FDI recipient at US$ 110.6mn (+41.6% y/y, 39.6% of total), followed by construction sector at US$ 69.1mn (+26.9% y/y, 24.7% of total), transport at US$ 56.1mn (-55.0% y/y, 20.1% of total) and manufacturing at US$ 40.2mn (6.3x higher y/y, 14.4% of total). United Kingdom topped the list of investors with US$ 82.7mn (+2.8% y/y), followed by Azerbaijan at US$ 51.0mn (-47.3% y/y), and China at US$ 41.6mn (5.7x higher y/y).
Exports up 50.2% y/y in May 2018
In May 2018, exports growth surged 50.2% y/y to record high US$ 323.3mn, imports were up 25.1% y/y to US$ 802.6mn and the trade deficit widened 12.4% y/y to US$ 479.3mn, according to GeoStat’s preliminary figures. In 5M18, trade deficit was up 20.9% to US$ 2.3bn as exports increased 28.0% y/y to US$ 1.3bn and imports were up 23.3% y/y to US$ 3.6bn. Detailed foreign trade statistics will be available on June 19, 2018.
Money transfers up 13.0% y/y in May 2018
In May 2018, money transfers increased 13.0% y/y to US$ 130.4mn, after growing 16.9% y/y in previous month, according to NBG. From major remitting countries, money transfers were up from Italy (+33.9% y/y, 12.0% of total), USA (+15.7% y/y, 10.7% of total), Greece (+13.6% y/y, 10.2% of total) and Israel (+34.5% y/y, 9.7% of total), while remittances were down from Russia (-1.7% y/y, 28.5% of total) and Turkey (-3.2% y/y, 7.4% of total). Overall, in 5M18 money transfers were up 19.2% y/y to US$ 609.3mn.
NBG keeps monetary policy rate unchanged at 7.25%
At its meeting on 13 June 2018, NBG’s monetary policy committee decided to keep its key rate unchanged at 7.25%. Inflation was 2.5% in May, below the 3.0% target, but the decision takes into account increased risks of transmission of inflationary pressures from the main trading partner countries due to higher volatility in financial markets. The committee also decided to reduce the minimum reserve requirements on local currency funding from 7.0% to 5.0%. The next committee meeting is scheduled for 25 July 2018.
