Summary Despite near stagnation in the euro area and the negative impact of the Ukraine crisis, in most of the NMS economies and some of the Western Balkan countries growth prospects are viewed as positive. While the NMS economies will preserve their positive growth differential vis-à-vis the...

The report analyses recent economic developments and short- and medium-term development prospects, covering the countries of Central and Eastern Europe and Southeast Europe including Turkey, together with Russia, Ukraine, Kazakhstan and China. Separate chapters present an overview of...

After a period of exceptionally high growth in the whole region of Central, East and Southeast Europe in the past two years, there has been some slowdown in GDP growth. Nevertheless growth remains largely robust. In particular the new member states of the EU (NMS) appear to be largely decoupled...

Growth prospects in Macedonia are still somewhere around 2% this year with some acceleration next year and beyond. The main driver is private investment which should recover due to relatively low private debt. The main risk is the possible contagion effect from the Greek crisis. There are still...

In Montenegro, growth prospects depend on the financial and fiscal stability, but are still not much above stagnation this year and slow recovery in the medium run. A start of negotiations with the EU would certainly contribute to overall stability.

Having reached a peak in 2002, Croatia's GDP growth lost momentum thereafter due to restrictive economic policy measures prompted by rising external and internal imbalances. The current account deficits, averaging 6-7% of the country's GDP over the past few years, were primarily the consequence...

Under favourable external conditions, the economies of the New EU Member States (NMS) fared even better in the first quarter of 2006 than in 2005. Investment accelerated sharply and industry is proving buoyant. Labour productivity has registered strong gains, unit labour costs declined. This is...

Fiscal constraint is potentially lax in catching-up economies, but it has not been abused by most countries considered in this paper. Fiscal risks are significant currently, but sustainability and structural balances are not threatened as a rule, if the return to potential growth rates is to be...

In its new special issue on the economies of Central, East and Southeast Europe, The Vienna Institute for International Economic Studies (wiiw) analyses the current economic situation in the region as well as development prospects for 2005 and 2006, presenting revised forecasts based on results...

In 2005 most of the new EU member states (NMS) performed even better than in 2004. They have successfully managed the accession to the EU and gained the ability to grow fast despite the anaemic performance of the old EU. FDI inflows reached a record high. In the coming two years, economic...