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42808
V. 3
Croatia Supplement – January 2008
External Environment
The external environment for the EU8+2 remains unsettled, dominated by continued repricing
of risk and tighter global credit conditions, signs of increasing weakness in the US economy,
rising global inflation and volatile equity markets. The new member states of the EU, and
Croatia as well, have yet to be more substantially affected by these external developments,
but risks have risen that a slowdown in output expansion in the US and eurozone will
contribute to slowing growth of the region’s exports and output.
Financial turbulence has continued, intensifying risks to output growth in the U.S. and other
developed countries. The eruption of the subprime crisis in the U.S. during the summer of 2007
followed a long period of lax monetary policy and loose credit standards. The impact of tighter
credit conditions on economic growth in the EU8+2 has been muted thus far, but it is becoming
increasingly likely that expansion in the U.S. and the eurozone will be slower in the near term,
with adverse implications for imports from emerging markets, including the NMS and Croatia.
The impact on the region may also reflect tighter financial conditions, with the potential of
slowing capital inflows and output growth.
A prolonged period of globally lower risk appetite is likely along with continuing volatility as
reflected in sharp swings in virtually all equity markets, particularly over the last several
weeks. This will be challenging for the region, and the soundness and credibility of policy
frameworks will be appreciated by market participants. However, with the exception of higherthan-expected inflation, the remaining economic fundamentals in the EU8+2 remain broadly
unchanged. GDP growth is still robust, but concerns remain for those countries where large
current account gaps persist.
Figure [1]. Three-month Interbank Rate
Less Central Bank Rates, in basis points
120
Figure [2]. EUROSPREAD in basis points
250
EURIBOR3mo-ECB Repo Rate
Croatia
LIBOR3mo - Fed funds rate
100
Bulgaria
200
Romania
80
150
60
100
40
50
20
Jan-08
Jul-07
Oct-07
Apr-07
Oct-06
Jan-07
Jul-06
Apr-06
Jan-06
Jul-05
Oct-05
Apr-05
Nov-07
Jul-07
Sep-07
May-07
Jan-07
Mar-07
Nov-06
Jul-06
Sep-06
May-06
Jan-06
Mar-06
Nov-05
Jul-05
Sep-05
May-05
Jan-05
Mar-05
Jan-05
0
Source: Emerging markets database, Bloomberg.
Vulnerability to external developments is greatest for countries with widening current account
deficits (CADs). The sovereign bond spreads for Romania and Bulgaria, but also Croatia have
widened much more sharply this year than is the case for other EU8+2 members with lower or
at least moderating CADs. Still, the economic outlook for the region in 2008 and 2009 is
generally positive, similar to advanced economies; however, the baseline scenario is subject to
substantial downside risk for economic growth and upside risk for inflation.
Output performance still strong, but slowing down
While strong growth dynamics maintained in Q3 in most of EU8+2 countries, with domestic
demand remaining the main driver of growth, signs of weakening are visible on the horizon.
Still, growth well above 5 percent across the region can be still regarded as robust.
In the first nine months of 2007 GDP in
Figure [3]. GDP growth rates (% yoy)
Croatia rose by 6.2 percent relative to the
same period in the previous year, when total
16
1Q 07
2Q 07
economic activity grew at a real rate of 4.7
14
3Q
07
2006
percent. Personal consumption was the
12
strongest economic growth generator, rising
10
at an exceptionally high rate of 6.6 percent
8
during the first nine months of 2007 thus
6
contributing to total GDP formation with 3.8
4
percentage points. The buoyant dynamics in
2
personal consumption was fuelled by the
expansion of government transfers to
0
households together with pensioner’s debt
CZ EE HU LV LT PL SK SI BG RO HR
repayment, continuing job creation and
Source: CSOs.
robust credit growth. Gross fixed capital
formation recorded 5.7 percent y/y growth in Q3 a slowdown against 11.2 at the beginning of
the year. Still, investments remained one of the main contributors for the overall GDP growth.
A marginally negative contribution to real GDP growth from net exports in Q3 was primarily the
result of a very good tourist sector results. Export growth eased to 7.3 percent in Q3, but still
outperformed imports growth, which speeded up to 7 percent from 6.4 percent in the previous
quarter. Government consumption grew by 4.4 percent y/y, compared with 2.7 percent in Q2,
which might be attributed to the spending relaxation before the parliamentary elections held
in November.
Figure [4]. GDP growth rate (in %) and
relative contribution of demand categories
(in percentage points) original data,
constant prices
Figure [5]. GVA growth rate (in %) and
relative contribution of sectors (in
percentage points) original data, constant
prices
12
8
9
6
6
4
%
% 3
2
0
0
-3
Personal consumption
Net foreign demand
Construction
Industry
Transport, storage and communication
Financial intermediation
Trade
GVA
Q3/07
Q2/07
Q1/07
Q4/06
Q3/06
Q2/06
Q1/06
Q4/05
Q3/05
Q2/05
Q1/05
Q4/04
Q3/04
Q2/04
Q3/07
Q2/07
Q1/07
Q4/06
Q3/06
Q2/06
Q1/06
Q4/05
Q3/05
Q2/05
Q1/05
Q4/04
Q3/04
Q2/04
Q1/04
Gross capital formation
Government consumption
GDP
Q1/04
-2
-6
Source: CROSTAT
In terms of value added, the highest growth rate was seen in sectors of hotels and restaurants
and trade. Meantime, agriculture registered a drop of 1.5 percent y/y in Q3 compared to a rise
of 3.7 percent a quarter earlier resulting from drought effect.
High frequency data point to a continuation of solid growth in Q4, albeit at a slower rate,
leading to an annual GDP growth rate of around 5.8 percent. Total volume of industrial
production rose by 5.6 percent in 2007, with a declining trend over the last couple of months,
with the largest contribution coming from production of non-durable consumer goods and
capital goods. Industrial growth might report further slowdown in the beginning of 2008, one of
the reasons being the base effect.
Labor Market Improved, Wage Pressures on Rise
Labor markets in the region have further improved with unemployment rates reaching
historically low levels and employment rates increasing. Despite the wage moderation, unit
labor costs continue to rise more quickly than productivity in much of the region. Labor
markets are tightening as labor shortages become more evident and may jeopardize prospects
for robust growth.
Favorable labor market trends continued throughout the 2007. The Croatian labor force survey
(LFS) unemployment rate dropped to 8.4 percent in Q3 2007 from 9.1 percent in the previous
quarter. There are also indications of by now positive trend in decline of youth unemployment,
which by Q3 declined to 22.3 percent. However, the share of long-term unemployed grew to
60.3 percent of the total. At the same time, the activity ratio (the age of 15 plus) increased
from 48.7 percent in the previous quarter to 49.5 in Q3 due to strong growth recorded in
manufacturing and trade. The average registered unemployment rate stood at 15.1 percent in
2007 compared to 16.9 percent a year ago, directly contributing to the reduction of
unemployed persons by about 27,000 on average. New jobs were mainly found in trade and
processing industry. A downtrend unemployment trend is expected throughout the year towards
eight percent at the annual level.
Figure [6]. Unemployment rates, %
16
LV
SI
14
LT
EE
16
3Q 07
3Q 07
3Q 07
1Q 07
3Q 06
1Q 06
3Q 05
1Q 07
0
1Q 05
2
2
1Q 07
4
4
3Q 06
6
1Q 06
8
6
3Q 05
8
1Q 05
10
1Q 05
HR
10
10
0
RO
12
12
15
5
BG
14
3Q 06
HU
SK
1Q 06
CZ
PL
20
3Q 05
25
Source: Eurostat, staff calculations.
The labor productivity increased by 5.4 percent y/y in January-November period, mainly as a
result of increase in production of capital goods and of non-durable consumer goods. In the
same period, average net wage in Croatia grew by 2.6 percent in real terms. However, wage
pressures are rising in 2008, mostly as a result of agreed wage increases for public
administration as well as in railways at the nominal rates above 6 percent.
Figure [7]. Real wage growth, yoy, %
3Q 07
2Q 07
RO
1Q 07
BG
HR
4Q 06
3Q 07
2Q 07
1Q 07
4Q 05
3Q 05
2Q 05
2Q 06
1Q 06
4Q 05
3Q 05
2Q 05
Note: Data in line with CSO methodology
Source: CSOs, staff calculations.
4Q 06
-5.0
3Q 06
-5.0
0.0
-5.0
2Q 06
0.0
1Q 06
0.0
3Q 07
10.0
5.0
2Q 07
10.0
5.0
1Q 07
5.0
4Q 06
15.0
10.0
3Q 06
15.0
20.0
15.0
3Q 06
25.0
LV
SI
2Q 06
EE
LT
20.0
1Q 06
25.0
4Q 05
PL
HU
3Q 05
CZ
SK
20.0
2Q 05
25.0
Inflation on a Hike, Monetary Policy Measures Exhausted
Inflationary trends are reasserting themselves across the region despite somewhat weaker
pressure on the demand side. Food and oil price rises are a main factor. Additionally, upward
adjustments in administered prices are contributing further to overall price increases. High
credit growth remains an important source of excess demand, though signs of deceleration are
visible in some countries.
Figure [8]. Growing Inflation, y/y, %
Oct-07
Apr-07
Jul-07
RO
Jan-07
Oct-06
Apr-06
Jul-06
BG
HR
Jan-06
Apr-07
Oct-07
SI
Jul-07
EE
16
14
12
10
8
6
4
2
0
Jan-07
LT
Oct-06
Jan-06
Oct-07
Jul-07
Apr-07
Jan-07
Oct-06
Jul-06
Apr-06
Jan-06
LV
Jul-06
16
14
12
10
8
6
4
2
0
CZ
HU
SK
PL
Apr-06
16
14
12
10
8
6
4
2
0
Source: Eurostat.
The inflation surged from 4.6 percent in November to 5.8 percent in December, which is the
highest recorded rate since November 2000. A strong rise in 2007 is mostly due to the rise of
food, clothing and shoes, as well as fuel for passenger vehicles. One of the rare categories that
recorded a drop in prices is the telecommunications equipment and services, as a result of the
growing competition on the domestic telecommunications market. The average inflation in
2007 was 2.9 percent (0.3 percentage points lower than in 2006), however due to the carryforward effect we expect inflation to surge to around 6 percent in 2008. Besides the mentioned
supply-side pressure, some hikes in administrative prices have occurred, especially at the local
government levels, boosting the pressure further.
The inflationary pressures in 2007 were also confirmed by changes in Producer Price Index
(PPI). The average industrial PPI inflation rose by 0.5 percentage points, from 2.9 percent in
2006 to 3.4 percent in 2007 due to higher prices in manufacturing and in energy prices. The
prices of food products and beverages also continued their acceleration, which could be
attributed to the increasing food prices on the world market.
The average kuna/euro exchange rate depreciated slightly by 0.2 percent in nominal terms in
2007. On the contrary, kuna appreciated by 8.1 percent against the US dollar, as a
consequence of the dollar’s weakening against euro in the international foreign exchange
market. The central bank held four foreign exchange interventions in an effort to alleviate
appreciation pressures on the exchange rate, purchasing from banks a total of EUR 662m at an
average exchange rate of HRK/EUR 7.30.
Figure [9]. Credit to private sector growth, yoy, %
EE
LT
LV
SI
80
80
CZ
HU
80
70
PL
SK
70
70
60
60
60
50
50
50
40
40
40
30
30
30
20
20
10
10
HR
Source: CBs, staff calculations.
Monetary developments have been in line with the central bank intention to limit the credit
expansion and accompanying rise in indebtedness. Despite strong credit activities of
commercial banks, credit growth to private sector slowed down to 13.2 percent in November
Nov-07
Jul-07
Sep-07
Mar-07
May-07
Jan-07
Nov-06
Sep-06
Jul-06
May-06
Nov-07
Sep-07
Jul-07
Mar-07
May-07
Jan-07
Nov-06
Sep-06
Jul-06
May-06
Mar-06
Jan-06
Nov-07
Jul-07
Sep-07
May-07
Jan-07
Mar-07
Nov-06
Jul-06
Sep-06
May-06
Jan-06
Mar-06
0
RO
0
0
Jan-06
10
Mar-06
20
BG
compared to the same period last year when it stood at 21.4 percent. Household loans
increased by 17 percent, while there are signs of a squeeze-out of corporate sector loans, in
particular SMEs, as large enterprises diverted to direct borrowing from abroad.
Furthermore, the large share of FX-linked loans to unhedged borrowers exposes banks to
indirect FX risk, hence expected losses in the event of sharp kuna depreciation, which is a
particular concern for households. However, recent data indicate a slowdown in foreigncurrency lending (from 71.7 percent in 2006 of total loans to 62.5 percent in November 2007).
The slowdown mainly reflects the changes in the liquidity requirement i.e. the expansion of
the base to include FX-indexed as well as FX-denominated lending, as well as higher risk
weights for FX lending to unhedged clients.
Figure [10]. Credit growth developments,
in percent
18
Figure [11]. Impact of the CNB's measures
on credit growth to the private sector
40
Introduction of "16% rule"
16
35
Toatal bank loans
14
12
Loans to enterprises
Loans to households
10
Introduction of "12% rule"
30
Introduction of SRR (55%)
25
20
8
15
Modification of "12% rule"
(3% in H2 2007)
6
10
Introduction of MRR (24%)
4
Increasing of MRR (to
30%, 40% and 55%)
5
2
Jun-07
Mar-07
Sep-07
Dec-06
Jun-06
Sep-06
Mar-06
Dec-05
Jun-05
Sep-05
Mar-05
Jun-04
Dec-04
Mar-04
Sep-04
Dec-03
Jun-03
Sep-03
Mar-03
Dec-02
Jun-02
Sep-02
Mar-02
Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07
Dec-01
0
0
Source: CNB
The central bank continues with restrictive monetary policy in 2008 and most likely in 2009. It
introduced stricter penalties for exceeding the 12-percent annual credit growth (banks that
breach 1 percent m/m credit ceiling will need to subscribe to 75 percent as opposed to
previous 50 percent of the exceeded amount to CNB bills at 0.25 percent rate (previously 0.75
percent)). The ratio between individual bank’s maximum credit growth and commensurable
capital adequacy will also be defined; lifting capital adequacy in case of excess lending, and
raising risk weighting for FX-linked loans to 100 percent vs. 75 percent earlier.
External Imbalance Deepening Albeit at a Slower Rate
Considerable and mostly rising current account deficits and high external debt still raise
concerns. With monetary policy mainly focused on financial and price stability, efforts to
address the vulnerabilities should rely largely on fiscal policy. This may call for trade-offs
between faster growth and higher risks of costly reversals of foreign capital flows.
The Croatian current account gap widened by 13.1% y/y to EUR 1.3bn in the first nine months
of 2007. Pressures on the overall current account (CA) performance continued with the trade
deficit widening by 10.8 percent and the decline in the surplus on current transfers. At the
same time the surplus on the services account reported an increase of 10.5 percent y/y to EUR
5.95bn, but it was not sufficient to offset the high negative effects of the other CA items.
Within services, the highest contribution to the surplus had travel services, which rose by 6.6
percent.
The robust credit activity also contributed to the increase in imports. The preliminary 2007
trade deficit widened by 11 percent to EUR 9.8bn, contributing to a slight deterioration in the
imports/exports coverage rate (from 48.2 to 47.8 percent). Exports went up by 9.1 percent,
while imports increased by a somewhat higher rate of 10.1 percent. Imports were mostly
fuelled by intermediate goods (except energy) and capital goods. Exports were mainly boosted
by manufacturing, particularly office machineries and computers, motor vehicles, trailers and
semi-trailers, as well as in electrical machineries and apparatus. Overall, this indicates that
strong domestic demand is likely to push the overall trade deficit for the year to another alltime high.
2006
2Q 07
3Q 07
2006
2Q 07
3Q 07
2006
2Q 07
3Q 07
2006
2Q 07
3Q 07
2006
2Q 07
3Q 07
2006
2Q 07
3Q 07
2006
2Q 07
3Q 07
2006
2Q 07
3Q 07
2006
2Q 07
3Q 07
2006
2Q 07
3Q 07
2006
2Q 07
3Q 07
In the first three quarters net FDI
Figure [12].
Basic
Balance
(CA+FDI+portfolio
inflows surged by 48.6 percent y/y
investments) in 2006-2007, % of GDP
to EUR 2.5bn. The increase was
4
2
attributed to the strong FDI growth
0
-2
in the first two quarters, while the
-4
third quarter recorded a drop. Of
-6
-8
total direct investments, net
-10
-12
equity investments had the highest
-14
-16
share of the total FDI, accounted
-18
-20
for almost two thirds of total,
-22
while
reinvested
earnings
amounted to around 20 percent of
CZ
EE
PL
SI
HU
LV
LT
SK
BG
RO
HR
total FDI. The significant increase
in other capital could be explained
Source: CBs, Eurostat, staff calculations.
with the intercompany lending,
which was triggered by the lower financial sources available to companies through bank credits
as a result of credit measures for curbing credit growth. In addition, the established relations
between direct investors and acquired companies attributed to further increase in the other
investments through trade credits and loans.
Figure [13]. Savings-Investment Gap, % of
GDP, 2006-2007e
Public sector
Private sector
Figure [14]. Public Sector Savings
Investments, % of GDP, 2006-2007e
Public sector savings
CAB
10
10
5
8
0
and
Public sector investments
6
-5
4
-10
BG
CZ
EE
LV
LT
SI
HU
PL
RO
SK
HR
BG
CZ
EE
LV
LT
SI
HU
PL
RO
SK
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
2007
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
2007
2006
-4
2007
-30
2006
-2
2007
0
-25
2006
-20
2006
2
-15
HR
The current account balance is the difference between a country's savings and its investment (CAB= S-I), which can be
divided into public and private sector CAB = (Sg-Ig)+(Sp-Ip). Private sector investments are calculated as gross capital
formation minus public sector investments; the latter is derived from the GFS - Capital Investments. Country's savings is
calculated as the sum of country's investments and public sector savings. Public sector savings is derived from GFS, as a
difference between current revenues and current expenditures.
Source: EUROSTAT, NCB’s, MoF, staff calculations.
Gross external debt continued growing albeit at a slower rate of 9.1 percent in November and
stood at EUR 31.9bn or 86.1 percent of GDP. Along with the slowdown of growth rate,
considerable changes were observed in the contributions of individual sectors to debt
structure. Of all debt components, the corporate debt was the only one to increase in annual
terms. It picked up by significant 33.8 percent to EUR 16.6bn at end-November (including intercompany lending). The government debt edged down as a result of the continuing government
policy to increase its domestic borrowing at the expense of foreign borrowing. However, if we
add the debt of public and mixed enterprises to the debt of government sector, the public
sector debt (including publicly guaranteed debt) in fact grew by a total of EUR 0.6bn or 6.8
percent. With monetary policy focused on kuna stability, accompanied by measures to
safeguard financial stability and discourage bank borrowing abroad, efforts to address the
Figure [15]. External debt in 2005-2007, % of GDP
CZ
LT
PL
RO
EE
LV
HU
BG
SI
Source: NCB’s, staff calculations.
vulnerabilities should be accompanied by more aggressive fiscal consolidation efforts.
More Aggressive Fiscal Consolidation Efforts Are Needed to Control Demand
All countries in the region have taken advantage of the solid growth in 2007 to save some of
the unanticipated revenue increases and improve their headline fiscal positions relative to the
initial plans. Improvements in fiscal balances in 2007 were driven mostly by higher-thanplanned revenues due to robust economic growth and rising inflation rather than efforts to
consolidate spending. Countries with substantial external current account deficits need to
keep fiscal accounts flexible to counteract to increased vulnerabilities.
Growth induced revenue overperformance and improved Croatian fiscal position, but the
continuation of structural fiscal adjustment depends on spending side reform. The government
has set a fiscal deficit target of 2.6 percent of GDP for 2007, but is most likely to be somewhat
lower due to also large one-off nontax receipts. Nevertheless, with quasi-fiscal activities
included, public sector deficit would be around 4 percent of GDP which is around 2006 outturn.
The
consolidated
central
government
(CCG)
deficit,
exclusive of capital revenues stood
at HRK 3.2bn or 1.2 percent of GDP
in the first eleven months of 2007.
For a comparison, the budget
position a year earlier was in a
deficit of HRK 4.0bn. The deficit
was financed mostly by domestic
borrowing (and a portion of thus
raised funds was used to settle due
foreign liabilities) and privatization
receipts which amounted to 1.1
percent of GDP.
Table [1]. Consolidated Central Government Balance,
in % of GDP
I. - XI. 2007.
Revenue
37.7
Total expenditure and net lending
Change in arrears (positive change denotes increase)
38.8
35.7
2.8
0.3
0.1
0.1
0.0
GFS 1986 balance
-1.2
Assumption of pensioner's debt
-1.2
Expense
Acquisition of nonfinancial assets
Net acquisition of financial assets - loans
Acquisition of shares and other equity
Acquisition of other accounts recivable
Revenue overperformance is to be
HBOR balance
-0.4
mainly attributed to significant
Overall fiscal im pact
-2.8
increase in VAT and social
Note: IMF GFS 1986 methodology
contributions at 13 percent y/y.
Source: MoF, staff calculations.
Total expenditures and net lending
soared by 12 percent y/y, with biggest items being social benefits (including, inter alia,
pensions and health care expenditures) and compensation of employees, which increased by
9.1 percent y/y and 10.2 percent y/y, respectively. Government investments continued to grow
2006
HR
3Q 07
2005
2006
3Q 07
Short-term debt
2005
2006
3Q 07
2005
2006
Other sectors
3Q 07
Banks
2005
2006
3Q 07
2006
2005
2006
SK
3Q 07
2005
2006
0
3Q 07
20
0
2005
40
10
3Q 07
60
20
2006
80
30
2005
100
40
2006
120
50
3Q 07
60
2005
140
3Q 07
Government
Short-term debt
2005
Other sectors
2006
Banks
3Q 07
Government
70
2005
80
strongly in the first eleven months of the year, of which Croatian Motorways and Croatian
Roads made up around half of overall public investments.
General government debt, inclusive of Croatian Bank for Reconstruction and Development
(HBOR) debt, stood at HRK 112.8bn or 41.2 percent of GDP at end-November. With government
guarantees, the total amount of public debt declined to 46.8 percent of GDP as compared to
49.7 percent of GDP in 2006. The share of domestic debt in public debt went up by an overall
1.7 percentage points, to 56.8 percent at end-November 2007 in line with the government’s
intended reliance on domestic financing sources.
Table [2]. Selected Vulnerability Indicators in the EU8+2 and Croatia in 3Q 2007
CZ
EE
HU
LT
LV
PL
SK
BG
RO
HR
GDP growth, SNA (real, %, yoy)
6.0
6.4
0.9
10.8
10.9
6.4
9.4
4.5
5.7
5.1
Current account balance, (4Q cumulative, % of GDP)
-3.5
-16.2
-5.4
-13.4
-25.4
-3.7
-4.8
-20.7
-13.3
-7.5
FDI (4Q cumulative, % of GDP)
3.8
3.2
-0.5
6.6
8.1
3.7
3.6
19.2
8.1
9.2
Total gross external debt (eop, % of GDP)
37.7
108.4
95.1
68.1
130.6
48.1
52.5
91.3
29.9
84.0
Change of international reserves in euro (eop, relative to previous
period, %)
0.1
16.5
-2.9
3.0
4.8
1.7
0.2
22.3
14.1
-4.1
Reserves-to-short-term debt ratio (eop, %)
156.4
48.3
120.8
65.3
74.8
114.9
128.1
145.4
161.3
192.4
Money Supply-to-Reserves ratio (eop, %)
351.9
300.1
327.9
252.4
224.5
346.2
235.1
167.0
140.6
308.7
Credit to private sector (eop, % of GDP)
44.8
91.7
57.4
58.4
92.4
38.4
40.9
61.6
34.0
71.3
Growth rate of credit to the private sector (avg, %)
24.4
40.4
11.2
45.2
45.3
33.0
23.9
55.9
51.3
18.9
Foreign currency loans to the private sector (eop, % of loans to
priv. sect.)
10.0
78.3
54.9
49.2
83.9
24.7
21.2
48.5
51.5
61.6
Short-term (3M) interest rates spreads to euro area (avg, basis
points)
-123.0
46.0
331.0
77.0
404.0
42.0
-17.0
41.0
231.0
-
-1.1
1.6
7.8
10.7
9.3
0.4
5.4
21.7
16.0
0.3
A/S/A-1
A/N/A-1
BBB+/S/A-
A-/S/A-2
A/S/A-1
BBB+/S/A-2
BBB-/N/A-3
BBB/S/A-3
Change of stock exchange index (avg, relative to previous period,
%)
*Sovereign credit rating according to S&P's
A/N/A-1 BBB+/N/A-2
*Current S&P Rating. The symbols in line with S&P ratings denote the outlook, S= Stable, N=Negative, P=Positive
Source: CBs, CSOs, ISI, S&P.