Governments continue to lift restrictions but there are warnings over a surge in new infections in Armenia, Iran and North Macedonia.
The coronavirus pandemic drove down the local banks' profits as several lenders set aside provisions to mitigate the higher risks generated by the COVID-19 crisis.
Although Serbia posted strong GDP growth in the first quarter of 2020, it is expected to fall into recession this year due to the coronavirus pandemic.
Reading improves to 40.9 from 33.4 in April. Move to growth should follow as long as COVID-19 continues to be brought under control, says IHS Markit.
Capital Economics pencils in second-quarter contraction of around 15% q/q on pandemic impacts.
Steady growth in new cases in several countries despite easing of lockdowns, numbers pushed up by outbreaks at industrial plants.
Slowdown in new cases in Eastern Europe, while lockdowns already being lifted in Central and Southeast Europe.
Performance ranges from a contraction of 5.4% q/q in Slovakia to growth of 0.3% q/q in Bulgaria and Romania.
The construction works volume index increased by 32.6% y/y in Q1 and by nearly 30% y/y in March alone.
Multinationals halted their equity investments and asked their local subsidiaries to pay back their loans, central bank data showed.
Plunge in passenger numbers expected after coronavirus lockdown and travel restrictions imposed during the month, bringing a halt to tourist travel.
Despite onset of pandemic and lockdowns market was expecting some growth.
More migrants risked the Balkan route in January-March, but almost no illegal border crossings during coronavirus lockdowns in April, says Frontex.
Croatia’s large tourism sector is expected to suffer further due to the pandemic, with government estimates of the decline in revenues this year ranging from 60% to 90%.
Russia now has the world’s second-fasted growth of COVID-19 cases after the US, with Moscow at the epicentre of the outbreak.
With lira precariously weak, more monetary easing could pave way to repeat of 2018 currency crisis they warn.