Trade deficit down 7.8% y/y excluding one-offs in 5M16
In May 2016, imports decreased 13.9% y/y to US$ 608.6mn, exports fell 11.6% y/y to US$ 172.3mn, and the trade deficit was down 14.8% y/y to US$ 436.3mn, according to GeoStat’s preliminary figures. Excluding one-offs (donated C-hepatitis medication imports in May 2015), trade deficit was up 18.5% y/y in May 2016, as imports were up 8.1% y/y.
In 5M16, the trade deficit is down 7.8% y/y to US$ 1.87bn excluding one-offs. Detailed foreign trade statistics will be available on June 20, 2016.

Money transfers down marginally in May 2016
In May 2016, money transfers decreased 4.9% y/y to US$ 92.9mn, according to NBG. Reduced remittances from Russia (-17.4% y/y, 33.4% of total), Greece (-29.9% y/y, 11.6% of total), and Ukraine (-10.2% y/y, 1.7% of total) were the major contributors to the drop in total money transfers. Meanwhile, remittances grew from Italy (+5.8% y/y), USA (+16.6% y/y), Turkey (+19.0% y/y), Israel (+85.3% y/y), and Spain (+8.6% y/y). Overall, money transfers were down 3.1% y/y to US$ 424.8mn in 5M16.

Producer price index down 0.4% m/m and down 2.8% y/y in May 2016
PPI for industrial goods decreased 0.4% m/m in May 2016, according to GeoStat. A 8.2% decline in mining and quarrying prices contributed most to the overall index change. Prices were also down for supply of electricity, gas and water (-1.6% m/m).
Annual PPI decreased 2.8% in May 2016. Falling prices in manufacturing contributed most to the overall index change (-4.8% y/y, -4.02ppts) as prices were down for manufacture of food products, beverages and tobacco and manufacture of basic and fabricated metals. Supply of electricity, gas and water prices were up 17.4% y/y.

NBG cuts its policy rate to 7.0%
At its meeting on June 15, 2016, NBG’s monetary policy committee cut its policy rate by 50 basis points to 7.0%, as the bank is gradually easing its monetary policy given reduced inflation expectations. NBG cited that it would further continue gradual reduction of the key rate in mid-term period to a neutral level (5-6%). The next committee meeting is scheduled for July 27, 2016.