Exports up 19.1% y/y in February 2019
In February 2019, exports increased by 19.1% y/y to US$ 266.3mn, imports were up 0.6% y/y to US$ 642.7mn and the trade deficit decreased by 9.3% y/y to US$ 376.5mn according to Geostat’s preliminary figures. In 2M19, trade deficit was down 7.3% to US$ 729.7mn as exports increased by 13.2% y/y and imports were flat. Detailed foreign trade statistics will be available on March 19, 2019.
Money transfers up 10.2% y/y in February 2019
In February 2019, money transfers increased 10.2% y/y to US$ 125.5mn after growing 5.1% y/y in previous month, according to NBG. Money transfers were up from Italy (+23.7% y/y, 13.9% of total), Greece (+5.5% y/y, 11.3% of total), Israel (+8.5% y/y, 10.2% of total) and USA (+54.4% y/y, 10.1% of total). Meanwhile remittances were down from Russia (-5.1% y/y, 25.2% of total) and Turkey (-22.4% y/y, 6.1% of total). In 2M19, money transfers were up 7.7% y/y to US$ 241.2mn.
FDI stood at 7.6% of GDP in 2018
FDI decreased by 34.9% y/y to US$ 1.2bn in 2018, according to Geostat’s preliminary figures. The main reasons behind FDI reduction were completion of BP gas pipeline construction, ownership transfer from non-residents to resident entities (US$ 180mn) and reduction in liabilities to non-resident direct investors (US$ 320mn). In 2018, financial sector was the largest FDI recipient, followed by transport and communication and energy sectors. Azerbaijan topped the list of investors, followed by UK, Netherlands and USA.
NBG cuts its policy rate by 0.25ppts to 6.5%
At its meeting on 13 March 2019, NBG’s monetary policy committee reduced its policy rate by 0.25ppts to 6.5%. In the beginning of 2019, similar to 2018, inflation has remained below the target level of 3% and NBG expects inflation to remain close to the target throughout 2019. NBG sees decreased risks to inflation from demand side as well as external sector and further monetary easing will depend on how fast the output gap closes. NBG also decided to increase reserve requirements on FX funding by 5ppts to 30% to support larization measures. The next committee meeting is scheduled for 1 May 2019.
