CEE house price and labour market developments two focus areas in a new Household Wealth and Debt ReportRegional info/economyPosted by Chambers of Commerce Sweden - Southeast Europe Mon, June 06, 2011 20:18:03
The CEE economies showed convincing signs of recovery in 2010 and the more
supportive macroeconomic environment translated into some improvement in
household financial conditions, even if the propensity to save continued to
prevail over that to consume.
The development in household financial conditions in early 2011 looks also promising but is confronted with a growing number of challenges. The recent increase in food and energy prices is an issue to monitor as are the related downside risks on economic activity. Austerity programmes and policy initiatives concerning pension systems also deserve careful monitoring in some countries.
With economic recovery gaining momentum, further normalisation in labour market conditions and consolidation is expected in the growth of household disposable income to remain the key drivers for the accumulation of net financial assets over the next couple of years. At the same time, the gradual improvement in job market conditions and more solid income growth should also support some resumption of household debt appetite.
This summary of the 2011 forecast is extracted from a 52 page report from one of the big European banks with special insight in the Central and Eastern European markets.
Bulgaria, Croatia and eight other countries in the region are thoroughly analyzed from a household and consumer perspective. Two areas are particularly addressed: House price developments and the CEE labour market.
Members can download the full report here.