Published on: 15.5.2009 | 13:59
Last update on: 15.5.2009 | 16:54

UNICREDIT

SEE export to drop EUR 65bn; FDIs cut in half

Author/source: SEEbiz
ZAGREB - The economic development in SEE countries has been extremely successful over the last 20 years, UniCredit analysts say.

"SEE countries have open economies with foreign trade accounting for 70% of their GDP. Hard attained competitiveness and ability to preserve its own production capacities are crucial in overcoming the crisis", Debora Revoltella, chief analyst at UniCredit Group for SEE region stated.

Trade integration with the EU was especially successful.

"In numerous industries, such as mechanisation, electric and optic devises, auto industry and transport, textile and rubber industry, SEE countries became the leading producers in the EU", Revoltella added.

FDIs played a crucial role in constructing new production capacities in the region, whose successfulness added to the importance of the domestic market, which is today greater than those in China and Germany.

Still, the global crisis left obvious consequences on economies worldwide. The WTO and the IMF forecast a minimal drop in global demand of 10% this year. Also, UniCredit analysts expect export to drop for the first time in ten years by EUR 65bn compared to last year, with FDIs halved and unemployment growth high.

However, the international support to the region is prominent and banks have the key role.

"In twenty-year long transition, the right skills and models were adopted to make investing into this region the right choice", Revoltella concluded.

 

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