Central/East Europe Growth Trending Upward, But So Are Deficits and Unemployment, Say Latest Projections.Business Editors ANN ARBOR Ann Arbor, city (1990 pop. 109,592), seat of Washtenaw co., S Mich., on the Huron River; inc. 1851. It is a research and educational center, with a large number of government and industrial research and development firms, many in high-technology fields such as , Mich.--(BUSINESS WIRE)--Oct. 15, 2003 Davidson Institute Emerging Markets Forecasts Project Strong Growth, with Challenges A freshly updated forecast for 13 countries in Central and Eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. projects strong growth to continue into 2004, but unemployment will also remain a problem. Last quarter's Davidson Institute Emerging Markets Forecasts (DIEMF) warned of deflation, which is now starting to occur, though most countries will experience low inflation. The quarterly DIEMF, produced at the University of Michigan (body, education) University of Michigan - A large cosmopolitan university in the Midwest USA. Over 50000 students are enrolled at the University of Michigan's three campuses. The students come from 50 states and over 100 foreign countries. , is the most frequently updated report of its kind. The findings include: -- Russian GDP GDP (guanosine diphosphate): see guanine. growth is now projected to exceed expectations for 2003 but slow down in 2004. -- Inflation for the region will be even lower than previously predicted, and Lithuania, which has already crossed over into deflation, will continue to experience that trend through at least the remainder of the year. -- Unemployment will remain high throughout the region. -- Estonia's projected GDP growth for 2003 has already been negatively impacted by threats of a shut-off of oil from Russia, and DIEMF projects the reverberations will continue to be a drag on Verb 1. drag on - last unnecessarily long drag out last, endure - persist for a specified period of time; "The bad weather lasted for three days" 2. GDP. -- Growth in the region is being fueled, in part, by government stimulus. This is producing deficits that will continue and put EU accession countries Accession countries is commonly used to refer to countries that have or will join the European Union ("EU"). Although the term should properly be used for countries that have yet to join the EU but whose date of accession has been finalized, the term came into common usage prior to in violation of the rule requiring that deficits be below three percent of GDP. "Economic and investment trends in Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. remain favorable, although growth is temporarily slowing down in the countries closely affiliated with the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community ," said Jan Svejnar, Executive Director of the William Davidson Institute, which produced the forecasts. "Russia's economy, and that of surrounding countries, remains strong but is closely tied to oil prices." The DIEMF are produced by the University of Michigan's William Davidson Institute, an emerging markets research organization with a worldwide network of scholars and extensive front-line business and government assistance experience. The DIEMF are updated quarterly to keep current with changing market conditions. The DIEMF currently monitor and project economic trends for 13 countries: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Slovak Republic, Slovenia, and Ukraine. For a full copy of the scores or further analysis, please contact Sarah Allen (202-535-7800 or sallen@kearnswest.com) or Keith Decie (202-669-1041, kdecie@kearnswest.com). |
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