In Central Europe and the Baltics growth will pick up on the back of the investment recovery which is linked to a better absorption of EU funds, Artur Radziwiłł, Director for Country Strategy and Policy, European Bank for Reconstruction and Development (EBRD), tells Emerging Europe.
For the economies of emerging Europe, the international economic environment appears generally positive. In 2017-2018, GDP growth in the Euro area is expected to hover at around 1.7 per cent. The international financial markets have stabilised and the current economic mood is improving. Because of the global recovery, the US Fed is expected to increase interest rates further in 2017, while oil prices are likely to rise. In the EU, disbursements from the payments’ cycle of the European Structural and Investment Funds are only just beginning, indicating higher co-financed investments in the Central and Eastern European EU member states (EU-CEE) from this year onwards.
The global economic environment continues to be challenging. The ‘wounds’ inflicted by the global financial crisis of 2008 have not yet healed completely and world economic growth remains rather subdued. This particularly applies to the advanced countries and especially to the Euro Zone, which is the most important trading partner for the Eastern European countries. Continue reading Are Labour Shortages Driving Economic Growth?
CEE’s presence at MIPIM has evolved over the years, says Béatrice Gravier, Commercial Director, MIPIM & MAPIC Markets, in a video interview with Emerging Europe.
Almost every single economy in emerging Europe implemented at least one reform in the last year to improve their business environment. In consequence, as many as 16 economies in the region are featured in the Top 50 of the World Bank’s Doing Business 2016 report. Emerging Europe speaks to Rita Ramalho, Manager of the World Bank–IFC Doing Business, who has compiled a resume about the emerging Europe region especially for us, about how the reforms introduced have helped make doing business easier across the region. Continue reading World Bank’s Doing Business Report 2016 Resume For Emerging Europe
Estonia and the two other Baltic states —Latvia and Lithuania— are Emerging Europe’s winners of the Milken Institute’s Global Opportunity Index — Attracting Foreign Investment across four broad categories: economic fundamentals, ease of doing business, quality of regulation, and rule of law. Estonia ranked 12th and was followed by Latvia (29th) and Lithuania (37th). The leader got its highest note for the quality of regulations, Latvia and Lithuania — for the ease of doing business.
As during its presidency of the Council of the European Union Latvia leads the development and implementation of the EU Commission president Jean-Claude Juncker’s Investment Plan in Brussels, the Baltic state continues to show exemplary focus on attracting foreign direct investment (FDI) at home.
With the Latvian economy among the fastest growing in Europe, it is tempting to believe that Latvia not only has recovered from the crisis but also learnt a lesson—there are no shortcuts, fiscal and monetary policy has to be in harmony.
Enhancing competitiveness and growth, making use of the digital potential and strengthening the role of the European Union in the global arena are the main objectives of the Latvian Presidency of the Council of the European Union, which commences on January 1, 2015.
The European Union’s fastest GDP growth rate of over 4 per cent in 2013 and the recent adoption of the euro are not the only factors that make Latvia an attractive foreign direct investment destination. For example, Mexican CEMEX, one of the world’s largest building materials suppliers and cement producers, chose Latvia almost a decade ago.
Nine months after Latvia introduced the euro, the country has seen a number of benefits: the common currency has significantly lowers the international transfer fees and conversion fees, Latvia uses a global reserves currency which helps remove devaluation risks, the country’s rating has improved and it is now able to take part in the European Monetary Union’s decision process. The Bank of Latvia is also expecting other benefits in the foreign investment area.
A general trend upwards in demand in the real estate market continues across the EU Baltic States of Lithuania, Latvia and Estonia, according to the Ober-Haus ‘Real Estate Report 2014’ focussing on the capitals of Vilnius, Riga and Tallinn.