16 August 2011

EASTERN EUROPE: Region's Q2 Growth Slows; C.Bank Rate Cuts Predicted.

BLOOMBERG


     The Czech, Hungarian and Slovak economies slowed in Q2...for the first time since the Q1 of 2010.
     “From the central bank point of view, there is a case for some rate cuts,” said a Citigroup economist. “Assuming there is no substantial weakening of regional currencies, we can expect at best stable rates or in the future some rate cuts, though probably not this year.”
     Regional powerhouse Germany reported an unexpectedly miserable Q1 growth rate of 0.1 percent...its lowest rate in 2 years! 
     French growth is also dead in the water.
     "The economies of emerging Europe look most vulnerable,  observes another economist....since..."they rely  more heavily on exports to the troubled eurozone."