Europe
SAFEGUARDING THE RECOVERY AS THE GLOBAL LIQUIDITY TIDE RECEDES: Central, Eastern and Southeastern Europe
April 2014
April 2014
©2014 International Monetary Fund
The April 2014 CESEE Regional Economic Issues (REI) assesses the macroeconomic outlook for the region in light of the latest global economic and financial developments.
“CESEE” refers to the following countries: Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Kosovo, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Russia, Serbia, Slovak Republic, Slovenia, Turkey, and Ukraine.
| Contents | ||
| EXECUTIVE SUMMARY | ||
| I. Recent Developments and Outlook | ||
| II. CESEE External Funding Patterns and Risks | ||
| A. Funding Structures in CESEE | ||
| B. Global Environment and Funding Conditions for CESEE | ||
| C. Which CESEE Countries May be Vulnerable to External Financial Shocks? | ||
| D. How Would Tighter Financial Conditions Affect Growth and Debt Dynamics in CESEE Countries? | ||
| III. Policy Priorities | ||
| ABBREVIATIONS | ||
| REFERENCES | ||
| Box 1. | Inflation Developments in CESEE | |
| Box 2. | Potential Spillovers from Regional Geopolitical Tensions | |
| Box 3. | Global Financial Environment and Foreign Funding Flows to CESEE | |
| Box 4. | Vulnerability of CESEE Countries to External Financial Shocks | |
| Box 5. | Sensitivity Analysis of Funding Costs and Portfolio Flows | |
| FIGURES | ||
| TABLES | ||
| ANNEXES | ||