The crisis did not change CEE’s long-term potential but some rebalancing of the macroeconomic model is needed, emphasizing a better diversification of the economy and further modernization, writes Uni Credit Research in their Sectoral Analysis of CEE 2011. Overall, long-term potential growth will be slower than before the downturn, as all the convergence drivers are intact but are less strong than in the past in the context of global environment characterized by higher cost of international liquidity and risk. The uncertain global outlook, growing competition from Asia and some rebalancing from non-tradable toward tradable sectors (particularly in SEE and the Baltic economies).
The Austrian bank analyzes and forecasts a number of industrial sectors in sveral of the countries in Central and Southeast Europe. Members can download this very comprehensive 68 page report here.