Eurozone Recession, Impaired Investor Interest Strain Recovery in Emerging Europe - Fitch
Thursday, 01 January 1970
The protracted recession in the eurozone coupled with a reversal in global risk appetite for emerging market assets in the second quarter of 2013 have taken the edge off of economic recovery in emerging Europe, Fitch Ratings said.
With the eurozone set to register a further contraction of 0.6% in 2013, the analysts of the ratings agency expect growth in emerging Europe to slow for the second year in succession to 2.3% in 2013 from 2.5% in 2012, with Croatia and Slovenia sustaining outright contraction.
Fitch sees fiscal policy in emerging Europe as set to remain contractionary - weighing on growth, with Poland and the Czech Republic still constrained by the EU's excessive deficit procedure (EDP), while Bulgaria, Hungary and Romania perceived as anxious to preserve their EDP-free status.
The majority of sovereign ratings in the region remained on stable outlook at the end of June.