Eastern European Outlook Predicts Lengthy Recession in Estonia and Latvia
The resilience of Central and Eastern European in the face of global economic slowdown is on its way towards eroding. Until now, many countries have maintained their growth thanks to vibrant domestic economies. However, pressure on the region’s economies has greatly increased as the euro zone has stagnated and the repercussions of the international financial and credit market crisis intensify. SEB’s October 2008 issue of Eastern European Outlook adjusts earlier overall growth forecasts downward. “Because of intensified global financial stress, the global economic outlook has become even gloomier just in the past month. This will have unavoidable consequences for central and eastern Europe as well, especially since the financial crisis has also reached western Europe in earnest. In our new scenario, central and eastern Europe can no longer be viewed as a strong growth region, even though many countries are of course showing good growth compared to western Europe,” notes Mikael Johansson of SEB Economic Research, chief editor of Eastern European Outlook.