CYPRUS
Following another year of strong performance, tourism activity in Cyprus has nearly returned to pre-pandemic levels, contributing to the overperformance of the economy compared with the euro area average
Subdued growth in the EU and a highly uncertain regional geopolitical backdrop cannot but weigh on tourist inflows next year, despite authorities’ efforts to diversify source markets and upgrade the country’s tourism profile
Real estate market continues to overperform, on the back of surging (mostly external) demand
Under the burden of tightened financing conditions, the real estate market is set to eventually cool down, albeit moderately
NORTH MACEDONIA
Higher interest rates boost banks’ profits, despite an increase in the cost of risk
Elevated provisioning needs are set to impact profitability, albeit from high levels
APPENDIX:
DETAILED MACROECONOMIC DATA
REGIONAL SNAPSHOT: MACROECONOMIC INDICATORS & FINANCIAL MARKETS