Global Economic Outlook 2015—Emerging Europe
Labor market reform remains top priority for the region. This will be instrumental to enhance business confidence and competitiveness of major emerging economies in Europe.
The Czech Republic
Lackluster growth in the eurozone region have hampered exports and the economy will remain vulnerable in the first two quarters of 2015, as well.
Driven by strong monetary and fiscal stimulus, the Hungarian economy is growing at a stable pace and is expected to continue with the same trend in the first half of 2015.
The export-driven Polish economy is losing some pace due to sluggish external demand from eurozone, its key trading partner. However, improvement in manufacturing, stemmed by an improvement in domestic demand is expected to be a key growth driver in 2015.
Weakening of domestic demand has decelerated the economic growth of Romania in 2014. the situation will remain same in H1 2015, which in turn will witness low investment trends and sluggish exports.
Sluggish growth continues in the region due to political instability, soaring high interest rates and weak exports to eurozone regions, Iraq and Russia. It is expected to be the same in 2015.
Economic growth remains sluggish in Ukraine due to the on-going violence. The country is expected to remain in recession in the first half of 2015. Significant economic reforms, easing down of military conflict should remain the new government’s prime focus in 2015.
About this report
Uneven recovery continues in Eastern Europe. Domestic demand is expected to drive growth in major countries in 2015, while weaker Euro area recovery, indecisive policies, and market instability in economies such as Poland, Turkey, and Ukraine remain an area of concern. Improved exports and household consumption are expected to support the economic growth of the Czech Republic, Hungary, and Romania. Labor market reforms remain top priority in 2015, and this will be pivotal in enhancing the business confidence and competitiveness of major emerging economies in Europe.
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