Premium
- New York
- London
- Barcelona
- Tokyo
- Sydney
Search
New Europe Weekly
0
0
Always look on the bright side of life
Fri, Oct 3 2008, 12:09 GMT
by Danske Research Team
The past year has been terrible for the global financial markets and we have been quite negative on the outlook for a number of Emerging Markets and in particular for Central and Eastern Europe (CEE) since early 2007. However, from time to time, it is important to look on the bright side of life.
We still expect a fairly sharp slowdown for the CEE economies. In fact, the slowdown is already under way. This is especially the case in the Baltic states, which, over the past year, have gone from double-digit growth to recession. However, that does not change the fact that the end of communism in CEE nearly 20 years ago has brought tremendous economic, financial and political progress and not least a significant improvement in living standards for ordinary people.
So even though CEE growth is likely to be very lacklustre going into 2009, there is nonetheless good reason to celebrate the enormous progress in Central and Eastern Europe since the first free elections in the former communist countries in June 1989. Poland provides a very good example of this progress. The country that joined the EU in 2004 - along with seven other former communist countries (and Malta and Cyprus) - has undergone a remarkable economic transformation over the past two decades of democracy and free market policies. In 1993 GDP per capita was only 9.5% of GDP per capita in Germany. Today the figure is 27.3%.
Take another example - the environment. Communist mismanagement created an environment graveyard in Central and Eastern. However, since the end of communism, the environmental situation has improved significantly in the region. For example, the emission of CO2 (per GDP unit) has been more than halved in Poland since the early 1990s.
Concluding, the Central and Eastern European economies and markets face serious challenges and we are likely to see a significant slowdown in growth in the region, but it does not change the fact that the past two decades have brought tremendous progress in region.
Published on Fri, Oct 3 2008, 12:09 GMT
Archive
- Always look on the bright side of life
Published On Fri, Oct 3 2008, 12:09 GMT - Corruption becoming less widespread in CEE
Published On Fri, Sep 26 2008, 15:58 GMT - US Rescue package brings relief - also to CEE
Published On Mon, Sep 22 2008, 08:02 GMT - Azerbaijan - the top reformer
Published On Fri, Sep 12 2008, 13:00 GMT - Peak time in EMEA inflation
Published On Fri, Sep 5 2008, 14:34 GMT
Danske Bank
| Holmens Kanal 2-12, DK-1092 Copenhagen
http://www.danskebank.com/ | danskeresearch@danskebank.com
Legal disclaimer and risk disclosure
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.Interested in forex trading? forex brokerage firms!
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.