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Crisis hits central Europe GDP, Slovaks lead growth
( 16 / December / 2008 )
The collapse in western European demand and the credit crunch forced central European economies to tap the brakes in the third quarter, Reuters polls showed, with Slovakia staying ahead of its immediate neighbours.
Markets ranging from the Baltics to the Black Sea have been hammered by investor flight, concerns over whether countries have borrowed too much abroad, and fears that a years-long economic boom will cease due to a global downturn.
Economic woes causing consumers to tighten their belts in in the euro zone -- emerging Europe's main export market -- means fewer of the cars and electronics produced here are being sold.
On top of that, mistrust between banks has locked up credit markets, raising the cost of borrowing for firms and consumers at home and undermining hope that domestic demand can take up much of the slack of the falling sales abroad.
A Reuters survey forecast Slovakia growing by 7.1 percent from July to September, down from 7.6 percent in the second quarter but far ahead of the Czech Republic, Poland and Hungary, the last of which could slide into recession next year.
It saw growth of 4.8 percent in 2009 for Slovakia, a huge drop from last year's full-year result of 10.4 percent.
Reuters