Exports up 24.9% y/y in May 2017
In May 2017, exports increased 24.9% y/y to US$ 215.2mn, imports were up 3.8% y/y to US$ 633.2mn and the trade deficit narrowed 4.6% y/y to US$ 418.0mn according to GeoStat’s preliminary figures. In 5M17, trade deficit was up 3.4% y/y to US$ 1.9bn as exports increased 28.6% y/y, while imports were up 10.8% y/y. Detailed foreign trade statistics will be available on June 19, 2017.
Money transfers up 24.2% y/y in May 2017
In May 2017, money transfers increased 24.2% y/y to US$ 115.4mn after growing 11.6% y/y in previous month, according to NBG. Money transfers were up from all major remitting countries: Russia (+21.8% y/y, 32.8% of total), USA (+22.7% y/y, 10.5% of total), Greece (+8.9% y/y, 10.2% of total), Italy (+14.5% y/y, 10.1% of total), and Turkey (+32.9% y/y, 8.7% of total). In 5M17 money transfers were up 20.3% y/y to US$ 511.2mn.
NBG keeps its policy rate unchanged at 7.0%
At its meeting on 14 June 2017, NBG’s monetary policy committee decided to keep the policy rate unchanged at 7.0%, after increasing it by 25 basis points last month. The decision is based on the macroeconomic forecast, according to which the inflation is expected to be above 4.0% target rate during 2017 due to one-offs. NBG commented that in the last few months, as a result of excise tax increases on tobacco and fuels, the inflation rate increased and reached 6.6% in May 2017. NBG however added that the increase in inflation is temporary and will start to decline in 2H17 and will get close to its target rate of 3.0% in 2018. NBG also noted that inflation expectations have been declining lately and there is no need of the further policy tightening given the absence of additional factors affecting price level. The next committee meeting is scheduled for 26 July 2017.
