Economic growth in Eastern and Central Europe, in particular in the Baltic countries, is continuing steadily, according to SEB’s latest issue of its twice-yearly Eastern European Outlook.
The three Baltic countries in particular, but also Poland, will continue to show decent GDP growth during 2013-2014. The northern part of Eastern Europe is displaying relatively good resilience to the global slowdown and the euro zone debt crisis, largely because their economies and banking sectors are in relatively good fundamental shape, reports bbn.ee.
It is also added that unemployment is expected to gradually fall in the Baltics and Russia, but rise in Poland and remain stuck at a high level in Ukraine.
This year, inflation will continue to drop in the Baltics and Poland but surge in Russia and Ukraine.
“Most EU countries in Eastern Europe, except for Latvia and Lithuania, probably make the assessment that it is too uncertain to join the euro zone during the next few years. The crisis has made it unclear where the euro zone is headed, for example in terms of supranationalism in fiscal policy and the stability of the euro in general,” says Mikael Johansson, Head of Eastern European Research at SEB and Chief Editor of Eastern European Outlook.
According to him, these Eastern European countries are waiting to see the outcome of the euro zone crisis before the question of adopting the currency comes up again on their political agenda.
Source: Baltic News Network