As CEE Economies Slow, Governments Seek to Attract Foreign Investment

CEE Overview

As regional economies continue to slow down, CEE governments seek privatizations and public sector restructuring in order to increase revenues and attract foreign investment. Russia, Turkey, and Poland remain the region’s most resilient economies and offer opportunities for MNCs, particularly in the consumer goods sector

Bulgaria: Despite a slowdown in growth in 2012, Bulgaria remains one of the region’s most macro-economically and politically stable markets

Croatia: Croatia is in for a challenging year that will bring austerity measures, pain for local consumers, and possibly a recession

Czech Republic: As growth continues to slow, the government plans to support local producers exporting to non-eurozone markets

Hungary: The government’s disagreements with the EU negatively impact its ability to stabilize the economy

Kazakhstan: Plans for new infrastructure building and technical upgrades create opportunities for B2B MNCs

Lithuania: As eurozone export demand declines and the Lithuanian government seeks to cut spending, the economy will grow more slowly this year

Poland: Positive economic sentiment and a stabilization of the currency improve the outlook for Poland; credit crunch remains a downside risk

Romania: Despite the change in government, Romania still has to implement painful austerity measures this year

Russia: High energy prices and consumer confidence sustain solid growth

Serbia: The government will struggle with a deteriorating macroeconomic environment and pre-election pressures through H1 2012

Slovakia: The consumer outlook remains negative through 2012 as any new government would have to cut public spending

Turkey: Turkey’s growth remains resilient on strong consumer demand and public investment plans

Ukraine: The government will continue to avoid prudent economic policies that could cost it the elections this fall

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