GDP up across central and eastern european states
Recent figures indicate that the economies of a range of former Eastern Bloc countries are growing at a very healthy rate, with gross domestic product (GDP) rising by up to around 7% in some cases.
Bulgaria’s third quarter GDP rose by 6.7% in the third quarter of 2006 from the same period last year, according to the National Statistical Institute. Bulgaria is targeting 5.5% growth for all of 2006 and 5.8% in 2007 after it joins the EU.
Russian third quarter GDP growth slowed to 6.5% from an increase of 7.4% in the second quarter, according to data from the Economic Development Ministry. However, for the first nine months of the year, GDP grew 6.8% from a year earlier. GDP growth also slowed in the Czech Republic, down to 5.8% from 6.0% in the second quarter.
Romania's GDP rose 7.5% year-on-year in the nine months to end-September, to about €66 billion, with the construction sector contributing the most to 17.7%. The government expects GDP to rise 7% in 2006 as a whole, up 1 point on previous forecasts, compared with growth of 4.1% last year.
Rising affluence and consumer spending pushed Slovenia's GDP to 5.6% compared to the same period last year. In a statement from its main statistical office, spokeswoman Karmen Hren said: "Growth in the third quarter was mainly fueled by domestic consumption that increased by 6.5 percent compared to the third quarter of 2005. We are most probably reaching the peak of an economic cycle." She added that more moderate growth in the future was expected.
Figures from its own Statistics Office indicate that Slovakia's GDP is expected to grow by 7.7% this year, 1.2% more than previous estimates. GDP growth is also expected to continue in the first quarter of 2007, according to the agency statement, which said: "The Slovak economy grew by a record 9.8% year-on-year in the third quarter, after a 6.7% year-on-year growth in the second quarter." Growth in the third quarter was driven mainly by consumer goods and investments, it said.
Hungary’s final third quarter GDP was up only 1.0% on the second quarter but up 3.9% year-on-year, according to final figures from the Hungarian Statistics Office (KSH). Over the first nine months of 2006, GDP grew by 4.2%. The government is forecasting 4.1% growth this year, followed by a slowdown to 2.2% growth in 2007 because of austerity measures. This will be followed by a ‘slight rebound’ to 2.6% in 2008, and then 4.1% in 2008, under a revised convergence plan approved by the EU Commission in September.
In 2005, the Hungarian economy grew by 4.1%, compared to an average 1.6% among all 25 EU member states.
Source: Overseas Property Professional