Latest macro & market developments - February 03, 2012
Greece Macro Monitor - Focus Notes
03 February 2012
• Final budget execution data for year-to-December 2011 undershoot the 12-month target for 2011; upward risks remain due to general government developments • Measures in order to close the gap between the actual 2011 deficit and the projected one in the 5th Review of the EC/ECB/IMF adjustment programme are estimated at ca. €2.2bn (~1.0%-of-GDP) • CPI inflation came out at 2.4% in December 2011, slightly lower than November’s reading of 2.9%; 2011 annual CPI reading at 3.3% inline with the headline inflation rate included in the 5th Review of the EC/ECB/IMF adjustment programme • Harmonized CPI inflation at constant taxes was 1.5% in November 2011 while the Harmonized CPI inflation was 2.8%; the difference is attributed to the recent VAT and special consumption tax hikes.