Foreign direct investment (FDI) inflows to the Baltic countries were driven by different factors. Initially the process of privatisation and low labour costs attracted investment into public utilities and manufacturing. Later, taking advantage of the Baltic geographical location, further FDI...

This study focuses on the most important drivers of the swift current account rebalancing which is taking place in Estonia and considers the possible way forward. After very large deficits in the boom years (2005-2007), Estonia's current account balance turned positive in the downturn, as...

Romania's domestic demand boom over the past few years has led to rapidly widening current account deficits, reaching an estimated 13½% of GDP in 2008. High private sector dissaving has been exacerbated by a procycylical fiscal policy, with the public deficit likely to exceed 3% of GDP in 2008....

Measuring public sector efficiency is not generally straightforward and presents a difficult empirical issue, specifically in terms of adequate measurement of costs and outcomes. This Country Focus attempts to measure the efficiency of public spending in Malta by applying two alternative...

Social expenditure in Poland appears to increase regional employment disparities. In particular, the farmers' social fund (KRUS) seems to contribute to the rising regional dispersion in the number of recipients of social transfers. This is the result of KRUS benefits being poorly related to...

Regional income and labour market disparities in Poland are characterised by three dimensions: the gap between the western and the eastern parts of the country, the privileged position of the capital region and rising differences between rural and urban regions. Disparities in labour markets are...

This Country Focus assesses the extent to which the recent tax-revenue increases in Cyprus is of a permanent nature or whether is of temporary nature, linked to short lived asset boom. Between 2002 and 2008 the Cypriot economy grew at an annual average rate of about 3½% in real terms,...

This Country Focus discusses the factors underlying the external imbalances in Greece. The deterioration in the lending position of the Greek economy mirrors an increasing gap between savings and investment, resulting from a combination of both rising investment and falling savings. Public and...

Analysis of the real estate sector in Estonia in recent years: multifactor housing demand and housing supply constraints. Was the price right and is it now? What next?

The UK's self-sufficiency in fossil fuels shields public finances from the negative effects of higher oil prices on general economic activity. Changes in the international price of oil affect government revenues from the corporate and household sectors. Taxes on oil production are estimated to...