Strengthening Recovery in Central and Eastern Europe : EU11 Regular Economic Report

Economic growth is expected to almost double in EU11 (Estonia, Latvia, and Lithuania, the Czech Republic, Hungary, Poland, the Slovak Republic, Bulgaria, Croatia, Romania and Slovenia) in 2014, and continue to strengthen in 2015. The northern count...

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Bibliographic Details
Main Author:	World Bank
Format:	Economic Updates and Modeling
Language:	English en_US
Published:	Washington, DC 2014
Subjects:	AGRICULTURE ASSET MANAGEMENT ASSET QUALITY ASSET-BACKED SECURITIES BALANCE SHEET BANK BALANCE SHEETS BANK FINANCING BANK FOR INTERNATIONAL SETTLEMENTS BANK LENDING BANK LINKAGES BANK RECAPITALIZATION BANKING SECTOR BANKING SECTORS BANKING SYSTEM BANKRUPTCY BASIS POINTS BOND BOND SWAP BOOK-ENTRY CAPITAL FLIGHT CAPITAL FLOW CAPITAL FLOWS CAPITAL INFLOWS CAPITAL MARKETS CAPITAL STOCK CDS CENTRAL BANK CENTRAL BANKS COMMODITY PRICE COMMODITY PRICES COMPETITIVENESS CONSOLIDATION CONSUMER LOANS CONSUMER PRICE INDEX CONSUMPTION EXPENDITURE CONSUMPTION TAXES CORPORATE BONDS CREDIT DEFAULT CREDIT DEFAULT SWAP CREDIT GROWTH CREDIT RATING CREDIT RATINGS CREDIT RISKS CURRENCY CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUSES DEBT DEBT BURDENS DEBT CRISES DEBT CRISIS DEBT LEVELS DEFLATION DEMAND FOR CREDIT DEPOSIT DEPOSITS DEVALUATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING COUNTRY EQUITY DOMESTIC MARKETS DURABLE ECONOMIC CONDITIONS ECONOMIC DEVELOPMENTS ECONOMIC EXPANSION ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC POLICIES EIB EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY CAPITAL EQUITY INVESTMENT EQUITY MARKETS EUROPEAN CENTRAL BANK EXCHANGE RATE EXPENDITURES EXPORT GROWTH EXPORTS EXTERNAL FUNDING FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR INDICATORS FINANCIAL SUSTAINABILITY FISCAL DEFICIT FISCAL DEFICITS FISCAL POLICY FLOATING EXCHANGE RATES FORECASTS FOREIGN BANK FOREIGN BANKS FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FULL EMPLOYMENT GDP GDP PER CAPITA GLOBAL FINANCIAL STABILITY GOVERNMENT BONDS GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT GROWTH GROWTH RATE HOST COUNTRY HOUSEHOLD INCOMES HOUSEHOLD SAVING HOUSING HUMAN CAPITAL HUMAN CAPITAL DEVELOPMENT INCOME GROWTH INCOME INEQUALITIES INCOME TAX INDEBTEDNESS INFLATION INFLATION RATE INFLATION RATES INSTITUTIONAL INVESTORS INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNATIONAL BANKING INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL SETTLEMENTS INVENTORIES INVESTMENT ACTIVITY INVESTMENT PROJECTS INVESTMENT RATES JUDICIAL SYSTEM LABOR COSTS LABOR MARKET LABOR MARKETS LEGAL FRAMEWORKS LIQUIDITY LOAN LOCAL MARKETS LONG-TERM INTEREST LONG-TERM INTEREST RATES MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILIZATION MARKET CONDITIONS MARKET REFORM MARKET REFORMS MIDDLE INCOME COUNTRIES MINISTRIES OF FINANCE MONETARY FUND MONETARY POLICIES MONETARY POLICY NATIONAL BANK NET EXPORTS NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOANS NPL PENSION PENSION REFORM PENSION SYSTEM PENSIONS PER CAPITA INCOME PERSONAL INCOME PORTFOLIO PORTFOLIO INVESTMENT PORTFOLIO INVESTMENTS PORTFOLIOS PRICE DECLINES PRICE STABILITY PRIVATE CAPITAL PRODUCTIVITY PUBLIC DEBT PUBLIC FINANCE PUBLIC FINANCES PUBLIC INVESTMENT PUBLIC SECTOR BORROWING PURCHASING POWER RATES OF INFLATION REAL ESTATE LOANS REAL GDP REAL INTEREST REAL INTEREST RATES RECAPITALIZATION RECESSION REGULATORY FRAMEWORK REGULATORY FRAMEWORKS RETURN RISK AVERSION RISK FACTOR SECURITIES SECURITIES MARKETS SOLVENCY SOVEREIGN BONDS SOVEREIGN DEBT SOVEREIGN RATING SOVEREIGN RATINGS STOCKS SUBSIDIARIES SUBSIDIARY SUPPLY OF CREDIT TAX RATE TAXATION TOTAL FACTOR PRODUCTIVITY TRADE BALANCES TRADING TRANSACTION TRANSPARENCY TREASURIES TURNOVER UNDERLYING ASSETS UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES VALUE ADDED WAGES WEALTH WITHDRAWAL
Online Access:	http://documents.worldbank.org/curated/en/2014/01/19796256/macroeconomic-report-strengthening-recovery-central-eastern-europe http://hdl.handle.net/10986/20072

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Summary:	Economic growth is expected to almost double in EU11 (Estonia, Latvia, and Lithuania, the Czech Republic, Hungary, Poland, the Slovak Republic, Bulgaria, Croatia, Romania and Slovenia) in 2014, and continue to strengthen in 2015. The northern countries of Estonia, Latvia, Lithuania will continue to be amongst the fastest growing countries in the EU, despite the negative impact of falling external demand as growth slows in their main trading partners. Croatia is the only country expected to remain in recession, for a sixth consecutive year, in 2014, as declining domestic demand continues to outweigh export growth. Recovery is expected to be gradual, with growth not reaching pre-crisis rates for some time. Inflation rates are expected to remain below targets during 2014, with some countries already experiencing deflation, but as global commodity prices stabilize, activity increases and output gaps diminish, inflation is expected to gradually rise. Fiscal consolidation will continue in 2014 and 2015, but at a more gradual pace than in the previous years. Economic growth forecasts in the EU11 are subject to multiple risks, mainly on the downside, as the global financial situation remains fragile. Rising global interest rates coupled with volatile capital markets, or an extended period of regional geopolitical tensions could slow the European recovery and constrain exports, credit and investment in EU11. While labor market conditions have started to improve, the pace of job creation and reduction in unemployment rates are likely to be gradual. Many of the economies in the EU11 face the twin challenge of high youth unemployment and rapidly aging populations. EU11 countries also struggle with equipping the next generation with the skills necessary to achieve their full potential e.g. in literacy, math and science. The persistence of large numbers of inactive and unemployed youth therefore poses unique risks of creating a "lost generation" of workers. Understanding the cyclical and structural nature of youth unemployment is therefore important to mitigate the potentially damaging cycle between youth unemployment and broader economic growth and productivity.

Strengthening Recovery in Central and Eastern Europe : EU11 Regular Economic Report

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