09.10.2009, 09:11
Estonia Economic Prospects “Medium” Compared to Europe
OREANDA-NEWS. October 09, 2009. In the assessment of PwC’s macro-economy analysts, Estonia’s prospects in overcoming the risks and dangers deriving from the global economic crisis are “moderate” and by the extent of economic problems we are placed exactly in the middle, or in the 7th to 9th place in comparison with 15 Central and Eastern European countries. The Czech Republic, Poland and Russia are in the best position and Ukraine and Latvia are in the worst position for coping with the crisis, reported the press-centre of PwC.
PwC’s report presented at the 19th Economic Forum held in Krynica Zdroj (Poland) in the middle of September confirms that the global economic crisis hit particularly hard namely in our geographic region. Export to Western Europe dropped drastically, the inflow of foreign investments practically stopped and domestic credit became nearly unavailable due to the trust crisis of banks. The concurrence of these factors replaced economic growth with economic decline, caused a steep rise in the unemployment level and the devaluation of currency in several countries.
In assessing the impact of the crisis on the economies of the 15 countries in the region and the dangers and risks awaiting in the future, the authors of the study hold that the situation is securest in the Czech Republic, Poland and Russia, while the next best group includes Slovakia and Slovenia. In the “medium” group, Bulgaria is in a better position, followed by Estonia, Hungary and Croatia. Of countries facing serious problems, Romania and Belarus are in a slightly better position, followed by Lithuania and Serbia and then by Latvia. The situation is worst in Ukraine.
Describing the situation in Estonia, the report points out that the drop in our gross domestic product and our current account deficit are, indeed, among the biggest in the region, but the high credit rating of the Estonian state and our good business climate clearly distinguish us from Latvia and Lithuania. Both by corruption index and bureaucratic obstacles, Estonia is the 2nd best among 15 countries.
Upon commenting the study, Ago Vilu, executive manager of PricewaterhouseCoopers Estonia, said that small countries are by nature more vulnerable to crises and sudden changes in the external environment. At the same time, our small size also gives us an advantage – the ability to effect rapid changes, which will ensure success in the world after the economic crisis. For Estonia, it is of critical importance to assert and further develop its competitive advantages: favourable business climate and open modern economy.
Background:
The study Hard Landing: Central and Eastern Europe Facing the Global Crisis has been prepared by a team of macro-economy specialists at PwC Poland on the basis of data from statistical offices and central banks in the region covered in the study as well as data from several international organisations (EBRD, IMF, World Bank etc). Read the full study at: http://www.pwc.com/et_EE/ee/press/assets/Hard_Landing_CEE_Facing_the_Global_Crisis_sept2009_PwC.pdf
PricewaterhouseCoopers (www.pwc.com) is the world’s largest organisation providing professional business advisory services to the public and private sectors. Using the knowledge and skills of more than 155,000 people in 153 countries, PwC helps its clients to create value, increase trust and give the market accurate information about corporate activities. In Estonia, PricewaterhouseCoopers employs nearly 100 professionals in the field.
PwC’s report presented at the 19th Economic Forum held in Krynica Zdroj (Poland) in the middle of September confirms that the global economic crisis hit particularly hard namely in our geographic region. Export to Western Europe dropped drastically, the inflow of foreign investments practically stopped and domestic credit became nearly unavailable due to the trust crisis of banks. The concurrence of these factors replaced economic growth with economic decline, caused a steep rise in the unemployment level and the devaluation of currency in several countries.
In assessing the impact of the crisis on the economies of the 15 countries in the region and the dangers and risks awaiting in the future, the authors of the study hold that the situation is securest in the Czech Republic, Poland and Russia, while the next best group includes Slovakia and Slovenia. In the “medium” group, Bulgaria is in a better position, followed by Estonia, Hungary and Croatia. Of countries facing serious problems, Romania and Belarus are in a slightly better position, followed by Lithuania and Serbia and then by Latvia. The situation is worst in Ukraine.
Describing the situation in Estonia, the report points out that the drop in our gross domestic product and our current account deficit are, indeed, among the biggest in the region, but the high credit rating of the Estonian state and our good business climate clearly distinguish us from Latvia and Lithuania. Both by corruption index and bureaucratic obstacles, Estonia is the 2nd best among 15 countries.
Upon commenting the study, Ago Vilu, executive manager of PricewaterhouseCoopers Estonia, said that small countries are by nature more vulnerable to crises and sudden changes in the external environment. At the same time, our small size also gives us an advantage – the ability to effect rapid changes, which will ensure success in the world after the economic crisis. For Estonia, it is of critical importance to assert and further develop its competitive advantages: favourable business climate and open modern economy.
Background:
The study Hard Landing: Central and Eastern Europe Facing the Global Crisis has been prepared by a team of macro-economy specialists at PwC Poland on the basis of data from statistical offices and central banks in the region covered in the study as well as data from several international organisations (EBRD, IMF, World Bank etc). Read the full study at: http://www.pwc.com/et_EE/ee/press/assets/Hard_Landing_CEE_Facing_the_Global_Crisis_sept2009_PwC.pdf
PricewaterhouseCoopers (www.pwc.com) is the world’s largest organisation providing professional business advisory services to the public and private sectors. Using the knowledge and skills of more than 155,000 people in 153 countries, PwC helps its clients to create value, increase trust and give the market accurate information about corporate activities. In Estonia, PricewaterhouseCoopers employs nearly 100 professionals in the field.
Комментарии