NBG cut its key rate by 75bps to 8.25%
On March 13, 2024, the NBG’s Monetary Policy Committee reduced its key rate by 75bps to 8.25% considering the low inflation environment along with reduced inflationary risks related to Red Sea tensions. The regulator also emphasized that local economic activity is gradually approaching its potential trend indicating the neutralization of demand-driven inflationary pressures. Based on NBG’s estimate, inflation is expected to remain below the target of 3.0% at the beginning of 2024, while stabilizing close to it in the medium term. The next committee meeting is scheduled for 8 May 2024.
Goods exports increased by 1.9% y/y in Feb-24
In Feb-24, goods exports increased by 1.9% y/y to US$ 464.6mn, after falling 26.2% y/y in previous month. Similarly, goods imports also increased by 3.6% y/y to US$ 1.1bn in February, following a 7.5% y/y reduction in previous month. Consequently, the trade deficit increased by 4.9% y/y to US$ 642.1mn in Feb-24.
Overall, in 2M24, trade deficit expanded by 5.3% y/y to US$ 1.3bn, as exports decreased by 12.2% y/y to US$ 803.2mn and imports were down by 2.0% y/y to US$ 2.1bn.
Money transfers stood at US$ 272.3mn in Feb-24
Money transfers were down by 26.9% y/y to US$ 272.3mn in Feb-24, after falling by 40.5% y/y in previous month, due to the last year’s high base and normalization in transfers from Russia. From top countries, transfers reduced from Russia (-66.8% y/y, accounting for 22.8% of total), Kazakhstan (-17.8% y/y, 3.9% of total) and Türkiye (-11.7% y/y, 2.8% of total). In contrast, there were substantial increases in remittances from EU (+15.0% y/y, 39.9% of total), followed by USA (+35.3% y/y, 15.1% of total) and Israel (+24.5% y/y, 7.5% of total).
Overall, in 2M24 remittances decreased by 34.5% y/y to US$ 535.5mn.
