Αναδυόμενες Αγορές Νοτιοανατολικής Ευρώπης & Μεσογείου: Δισεβδομαδιαία Επισκόπηση 27 Μαΐου - 9 Ιουνίου 2025

TÜRKIYE
GDP growth is set to ease slightly to 3.0% in FY:25 -- i.e. c. 2.0 pps lower than its 2022-23 average and c. 0.5 pps below its long-term potential -- on tightened financing conditions
In this environment, and with economic sentiment having weakened recently, domestic demand is expected to grow at a slower rate, especially if the pace of fiscal consolidation accelerates, as planned

BULGARIA
Albeit slowing on weaker net exports, GDP growth remained resilient (at 3.1% y-o-y) in Q1:25
Despite headwinds, GDP growth is projected at 2.8% in FY:25 -- in line with the economy’s long-term potential -- and well above the EU average
The EC and the ECB give Bulgaria the green light to adopt the euro from January 1, 2026

CYPRUS
Still high interest rates continued to feed banks’ profits in FY:24
Improving asset quality, together with robust GDP growth prospects, allowed banks to curtail provisioning charges, providing an additional boost to profitability
Albeit moderating, in line with lower interest rates, ROAE should remain at double-digits


APPENDIX:
DETAILED MACROECONOMIC DATA
REGIONAL SNAPSHOT:  
        MACROECONOMIC INDICATORS
        FINANCIAL MARKETS