Thursday, September 27, 2007

Slovak Business Environment Worsens

A September report of ING Slovakia includes this graph and comment on the PAS business environment index: "The strong anti-reform pre-election rhetoric has not been followed up with the reversal of the previous government's reforms. Facing a possible currency crisis after the elections, the new government recommitted itself to the original euro adoption schedule. However, financial markets had assumed the anti-reform stance would not be met with action and the government would keep the status-quo in reforms.
Nevertheless, as time goes by, the government's policy is taking a negative toll on the business environment. And there is no guarantee that this process will not deteriorate further after 2009 euro entry."


Antal Dániel said...

I think the countries of this region should learn from each other, or at least each others mistakes. Many fundamentals are so akin, yet the same stories go on all over the place.

Hungary is now just the opposite in its performance: after a fiscal policy nightmare and a stabilization the GDP came almost to a halt. On the other hand Hungary has jumped 21 in the World Bank Doing business ranking up, and after for years it has jumped a few places on Transparency International's CPI,too.

You could say, opposite trends, but I think it is just the surface.

Michal Lehuta said...

yup, it's all about the trends and time lag - whereas hungary can only get better now, slovakia can lose a lot in the coming years (if it repeats the same mistakes that hungary did)