Europe and Central Asia Economic Update, October 2015 : Low Commodity Prices and Weak Currencies

Against the backdrop of a weakening global economy and volatility in international financial markets, countries of the Europe and Central Asia region (ECA) are transitioning to a new normal that is characterized by low commodity prices, slow trend growth of global trade and less abundant availabilit...

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Main Author:	World Bank
Format:	Serial
Language:	en_US
Published:	Washington, DC 2015
Subjects:	commodity prices terms-of-trade remittances economic growth depreciation income distribution devaluation oil prices household income exchange rates Dutch Disease
Online Access:	http://hdl.handle.net/10986/22790

id	okr-10986-22790
recordtype	oai_dc
spelling	okr-10986-227902021-04-23T14:04:11Z Europe and Central Asia Economic Update, October 2015 : Low Commodity Prices and Weak Currencies World Bank commodity prices terms-of-trade remittances economic growth depreciation income distribution devaluation oil prices household income exchange rates Dutch Disease Against the backdrop of a weakening global economy and volatility in international financial markets, countries of the Europe and Central Asia region (ECA) are transitioning to a new normal that is characterized by low commodity prices, slow trend growth of global trade and less abundant availability of international liquidity. The transition is challenging because the region has not still fully recovered from the after-effects of the global financial crisis and current volatile conditions in international financial markets create headwinds. The eastern part of ECA faces the difficult adjustment to low commodity prices. That adjustment comes with sharp real deprecations, job losses in construction and domestic services, falling asset prices (especially real estate and equity prices), increased fragility in partly dollarized financial sectors, and declining household incomes. However, that adjustment comes also with new opportunities in the tradable sectors. To seize these opportunities policy makers have to embrace the new normal, using flexible exchange rates, absorbing negative side-effects, and facilitating investments in new sectors. In the western part of the region the recovery remains fragile. In Southern European countries, access to finance will not be as easy as it had been before 2008, but there are now real opportunities to leave the crisis behind and to steadily create new jobs. Policy makers can seize these opportunities if they move beyond firefighting and create conditions for reinvigorating competitiveness. 2015-10-21T18:35:32Z 2015-10-21T18:35:32Z 2015-10 Serial 978-1-4648-0753-4 http://hdl.handle.net/10986/22790 en_US Europe and Central Asia Economic Update; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Publications & Research Publications & Research :: Publication Europe and Central Asia Central Asia Eastern Europe Europe and Central Asia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	commodity prices terms-of-trade remittances economic growth depreciation income distribution devaluation oil prices household income exchange rates Dutch Disease
spellingShingle	commodity prices terms-of-trade remittances economic growth depreciation income distribution devaluation oil prices household income exchange rates Dutch Disease World Bank Europe and Central Asia Economic Update, October 2015 : Low Commodity Prices and Weak Currencies
geographic_facet	Europe and Central Asia Central Asia Eastern Europe Europe and Central Asia
relation	Europe and Central Asia Economic Update;
description	Against the backdrop of a weakening global economy and volatility in international financial markets, countries of the Europe and Central Asia region (ECA) are transitioning to a new normal that is characterized by low commodity prices, slow trend growth of global trade and less abundant availability of international liquidity. The transition is challenging because the region has not still fully recovered from the after-effects of the global financial crisis and current volatile conditions in international financial markets create headwinds. The eastern part of ECA faces the difficult adjustment to low commodity prices. That adjustment comes with sharp real deprecations, job losses in construction and domestic services, falling asset prices (especially real estate and equity prices), increased fragility in partly dollarized financial sectors, and declining household incomes. However, that adjustment comes also with new opportunities in the tradable sectors. To seize these opportunities policy makers have to embrace the new normal, using flexible exchange rates, absorbing negative side-effects, and facilitating investments in new sectors. In the western part of the region the recovery remains fragile. In Southern European countries, access to finance will not be as easy as it had been before 2008, but there are now real opportunities to leave the crisis behind and to steadily create new jobs. Policy makers can seize these opportunities if they move beyond firefighting and create conditions for reinvigorating competitiveness.
format	Serial
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Europe and Central Asia Economic Update, October 2015 : Low Commodity Prices and Weak Currencies
title_short	Europe and Central Asia Economic Update, October 2015 : Low Commodity Prices and Weak Currencies
title_full	Europe and Central Asia Economic Update, October 2015 : Low Commodity Prices and Weak Currencies
title_fullStr	Europe and Central Asia Economic Update, October 2015 : Low Commodity Prices and Weak Currencies
title_full_unstemmed	Europe and Central Asia Economic Update, October 2015 : Low Commodity Prices and Weak Currencies
title_sort	europe and central asia economic update, october 2015 : low commodity prices and weak currencies
publisher	Washington, DC
publishDate	2015
url	http://hdl.handle.net/10986/22790
_version_	1764452190936629248

Europe and Central Asia Economic Update, October 2015 : Low Commodity Prices and Weak Currencies

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