climate and expect the SEE-7 to return to higher growth by the year 2010. Inflation has calmed down, but it is still a matter … current account has widened. Unemployment is high, a fact that will not change substantially during the next few years …. Inflation calms down The whole region was hit by the external price shock that swiftly resulted in a rapid surge in domestic …

. Macroeconomic stability will be maintained, though inflation is picking up; and is a serious problem in Serbia and Romania …. Inflation is a major concern in Turkey, as is macroeconomic stability more fundamentally. At the end of 2006 it should be …, inflation is expected to remain in double digits. The new government is likely to be less inclined to implement liberal reforms …

(except in Hungary). Inflation slowed down to very low levels and is no longer a serious problem. Hungary and Slovakia will … unemployment rates have stabilized. Exports of goods and services grew strongly throughout the region, while imports expanded even … Serbia, which has seen accelerating inflation, and Romania, where disinflation has been interrupted. The downside to that is …

average rate of unemployment in the NMS is nearly twice as high as in the EU-15 (mainly on account of Poland and Slovakia); in … to EU accession and rising energy prices), inflation resumed its downward trend, reaching low single digits in most NMS … (except Slovakia) and in the remaining transition countries as well (except Romania, Serbia and Ukraine). Russian inflation …

weak rebound of economic activities, unemployment will continue to rise, probably peaking in 2010, before falling slowly to …

nowadays much sounder than in the past (Hungary being temporarily an exception). The rates of inflation are quite low and … risks, especially those connected with high or very high unemployment. Overall, prospects for growth are good in the short … growing external borrowing, possibly associated with the growing presence of foreign banks. Inflation apart, the country …

import growth lagged behind export growth, yielding better trade balances. The stronger economic growth reduced unemployment … the aggregate unemployment rate in the NMS declined by 1.7 p.p. in the post-accession period. However, three macroeconomic … stability indicators – inflation, current account status and fiscal balance – reveal a more differentiated and less favourable …