Monday, November 9, 2009
Twenty years after the fall of the Berlin Wall, Slovenia, the Czech Republic and Slovakia are the three richest countries of the former Eastern Bloc with regard to GDP per person. Yet, their living standars still fall behind their Western-European counterparts'. Whereas Slovenia reaches roughly 62% of the Western-European average, the Czech Republic and Slovakia are only at 41-42%, and the rest of the region lies further down the chart. The Economist reports.
Thursday, August 27, 2009
Wednesday, August 19, 2009
Sunday, August 16, 2009
For this year, privatization of Warsaw Stock Exchange is planned. This way, the Vienna exchange could theoretically overtake its regional rival and form Europe's eight largest market for shares. Or the acquisition can happen the other way around, with the privatized Polish exchange acquiring Wiener Börse. Nevertheless, for now both exchanges deny the possibility of allowing one to buy the other.
Largest stock exchanges in Europe according to market capitalization are: Euronext, LSE, Spanish exchange, Deutsche Börse and the Swiss exchange.
Thursday, July 30, 2009
Wednesday, July 22, 2009
The Fed will need "to tighten monetary policy to prevent the emergence of an inflation problem," Bernanke writes. This should be achieved by eliminating large reserve balances of banks. To do that, the Fed could increase its target for federal funds rate, attracting liquidity back into its own hands. Moreover, in case the federal funds rate does not react sufficiently to the rate Fed will pay on deposited reserves, the Reserve or the Treasury could arrange large-scale "reverse repurchase agreements" - that is, issuing their own securities and sterilizing thus gained liquidity.
The timing and pace of such instrument should best foster Fed's objectives of maximum employment and price stability, the chairman concludes.
Sunday, July 5, 2009
Wednesday, July 1, 2009
1. Volkswagen Slovakia, automotive, €5.37 billion
2. Slovnaft, oil refining, €4.03 billion
3. Samsung Electronics, electronics, €3.52 billion
4. U.S. Steel Košice, metallurgy, €2.93 billion
5. SPP, gas distribution, €2.90 billion
6. Kia Motors, automotive, €2.23 billion,
7. Slovenské elektrárne, energy, €1.96 billion
8. PCA Slovakia, automotive, €1.74 billion
9. Sony Slovakia, electronics, €1.40 billion
10. Západoslovenská energetika, energy, €1.11 billion
Source: TREND Top 200. Last year's results can be found in our earlier post.
Wednesday, June 3, 2009
Monday, May 25, 2009
"An increase of deficit by one percentage point of GDP permanently would increase GDP growth only in the short-term - by 0.4% in the first year, and 0.2% in the following periods. After six quarters, the GDP dynamic would return to its original level. The major effect of such permanent deficit increase would be lasting increase in real interest rates."
The paper by Michal Benčík can be found at the NBS's website (in Slovak).
Friday, May 22, 2009
Friday, May 15, 2009
Czech Republic -3.2% / -3.4%
Hungary -6.4% / -4.7%
Poland n.a.* / n.a.* (seen at 1.0-1.3% by MinFin, 1.0% by Bloomberg)
Slovakia -5.4% / -6.0%
NSA - non-seasonally adjusted, SA - seasonally adjusted
* - will be published on May 29
Tuesday, May 12, 2009
- the accession process has contributed to significantly improve living standards in the new Member States, [...]
- rapid trade integration has fostered a more efficient division of labor and strengthened competitiveness in the EU
- investments from old Member States have been a key driver of economic transformation in the new Member States
- new investment opportunities created by enlargement helped enterprises in the old Member States to strengthen their global competitiveness [...]
- workers in the new Member States have profited from improved employment opportunities at home and abroad, [...]
- in old Member States, concerns raised about massive labor migration prior to enlargement have not materialized
Local economies experienced a swift growth in 2004-8. Regional average GDP per capita increased from 61.5% of the EU average in 2004 to 67.7% four years later (arithmetic average of V4 countries). Population in V4 stayed stagnant - at 63.9-64.0 million. The number of inhabitants grew noticebly only in the Czech Republic (from 10.2 to current 10.5 million). The EU27's total population is expected to reach 500 million sometime later this year.
Sunday, May 10, 2009
Monday, April 27, 2009
Sunday, April 12, 2009
Hungarian authorities already calculate with a recession of 5.5-6.0% in this most-hit Central-European country (majority of analysts expected 4-5% decline).
An older (February) forecast of the Czech National Bank counts with an economic decline of only 0.3% in the Czech Republic. IMF expects -1.3%.
By the end of March, Polish central bank expected a 1.1% growth for Poland, which would make the country the only economy in the EU to grow. Similar estimate was released by The Economist Intelligence Unit (+0.9%).
A good portrayal of the current state in the local automotive sector, one of the leading and most-hit industries, can be found at businessnewseurope.
Monday, March 16, 2009
"A picture worth 163 words
SIR – Given your newspaper’s determination to accompany any article on social or political affairs in eastern Europe with a photograph of the apparently ubiquitous old lady with a shawl wrapped over her head, I was delighted to find that your recent piece on the gas crisis in the region (“Gasping for gas”, January 17th) carried a picture representative of another important demographic group: the dentally challenged villager. My excitement was short-lived, however, as just a week later it was back to the well-wrapped old lady (“To the barricades”, January 24th). One gets the impression from your coverage of elections that every polling station east of the Danube is populated solely by such characters.
To avoid creating any misleading stereotypes, may I suggest that you widen your range of imagery to better represent east Europeans. Roma using horse-drawn carts on main roads, elderly veterans in Soviet-style uniforms and furry hats and vodka-soaked vagrants would broaden the picture.
Wednesday, March 11, 2009
Monday, March 9, 2009
Thursday, March 5, 2009
Wednesday, March 4, 2009
Thursday, February 19, 2009
Wednesday, February 18, 2009
The product covers:
- key macroeconomic indicators with commentary, history and regularly updated prognoses
- concise analyses of recent development in selected industries, new investment intentions of foreign and domestic corporations, mergers and acquisitions, industrial statistics, financial results of major players, hot news and events
- selected industries - metallurgy, mechanical and electrical engineering, chemical industry, energy sector, foodstuff processing, construction, production of construction materials, financial sector and other corporate news
Wednesday, February 11, 2009
Sunday, February 8, 2009
1. Czech Republic - 30.9% of exports (1-11/08)
2. Hungary - 28.4% (2007)
3. Poland - 25.0% (1-11/2008)
4. Slovakia - 20.3% (1-10/2008)
5. Slovenia - 19.8% (1-11/2008)
Since exports-to-GDP ratios in Central and Eastern Europe are very high (roughly from 50 to 100%), a two-percent decline in Germany's economy this year is felt considerably in orders decline in the rest of "Mitteleuropa" as well.
Note: Lithuania's major export market is Latvia. Latvia's statistical office does not provide the necessary data. Estonia's major export partner is Finland. Croatia's major partner is Italy.
Thursday, February 5, 2009
The reason for FDI inflow decline is that many companies scaled back their expansion plans due to global financial crisis. Japanese electronics manufacturer Sony, for instance, has been one of those belonging to this group. Other projects have been put on hold by hesitant firms facing uncertain times. Yet, there were a few significant large investments announced. For example, Bratislava-based plant of Volkswagen announced expansion worth €300 million last year.
Sario officials say that 2009 could witness resumption in FDI flows thanks to the Slovak adoption of common currency Euro as of January 1 this year. The agency is currently working on 122 projects bringing potentially more than € 2 billion of capital into the country. Five of the projects exceed € 300 million in value.
Sunday, January 25, 2009
Friday, January 16, 2009
Wednesday, January 14, 2009
Thursday, January 8, 2009