The outlook for economies in south-eastern Europe (SEE) is improving on the back of monetary easing in the euro zone, the weaker euro and lower commodity prices as domestic policy factors become increasingly important, according to the EBRD’s Regional Economic Prospects report released on May 14.
After a difficult 2014 the report sees SEE growth picking up to 2.3 per cent in 2015 and then further to 2.8 per cent in 2016. However, high levels of non-performing loans (NPLs) and uncertainties surrounding Greece present considerable risks to economies in the region.
Quantitative easing by the European Central Bank has allowed easier monetary conditions in countries with close economic ties to the eurozone. However, the euro zone’s prospects could be dampened by volatility related to Greece.
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(Photo: M van den Dobbelsteen/sxc.hu)