World Bank2014-09-112014-09-112014-01https://hdl.handle.net/10986/20072Economic growth is expected to almost double in EU11 (Estonia, Latvia, and Lithuania, the Czech Republic, Hungary, Poland, the Slovak Republic, Bulgaria, Croatia, Romania and Slovenia) in 2014, and continue to strengthen in 2015. The northern countries of Estonia, Latvia, Lithuania will continue to be amongst the fastest growing countries in the EU, despite the negative impact of falling external demand as growth slows in their main trading partners. Croatia is the only country expected to remain in recession, for a sixth consecutive year, in 2014, as declining domestic demand continues to outweigh export growth. Recovery is expected to be gradual, with growth not reaching pre-crisis rates for some time. Inflation rates are expected to remain below targets during 2014, with some countries already experiencing deflation, but as global commodity prices stabilize, activity increases and output gaps diminish, inflation is expected to gradually rise. Fiscal consolidation will continue in 2014 and 2015, but at a more gradual pace than in the previous years. Economic growth forecasts in the EU11 are subject to multiple risks, mainly on the downside, as the global financial situation remains fragile. Rising global interest rates coupled with volatile capital markets, or an extended period of regional geopolitical tensions could slow the European recovery and constrain exports, credit and investment in EU11. While labor market conditions have started to improve, the pace of job creation and reduction in unemployment rates are likely to be gradual. Many of the economies in the EU11 face the twin challenge of high youth unemployment and rapidly aging populations. EU11 countries also struggle with equipping the next generation with the skills necessary to achieve their full potential e.g. in literacy, math and science. The persistence of large numbers of inactive and unemployed youth therefore poses unique risks of creating a "lost generation" of workers. Understanding the cyclical and structural nature of youth unemployment is therefore important to mitigate the potentially damaging cycle between youth unemployment and broader economic growth and productivity.en-USCC BY 3.0 IGOAGRICULTUREASSET MANAGEMENTASSET QUALITYASSET-BACKED SECURITIESBALANCE SHEETBANK BALANCE SHEETSBANK FINANCINGBANK FOR INTERNATIONAL SETTLEMENTSBANK LENDINGBANK LINKAGESBANK RECAPITALIZATIONBANKING SECTORBANKING SECTORSBANKING SYSTEMBANKRUPTCYBASIS POINTSBONDBOND SWAPBOOK-ENTRYCAPITAL FLIGHTCAPITAL FLOWCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETSCAPITAL STOCKCDSCENTRAL BANKCENTRAL BANKSCOMMODITY PRICECOMMODITY PRICESCOMPETITIVENESSCONSOLIDATIONCONSUMER LOANSCONSUMER PRICE INDEXCONSUMPTION EXPENDITURECONSUMPTION TAXESCORPORATE BONDSCREDIT DEFAULTCREDIT DEFAULT SWAPCREDIT GROWTHCREDIT RATINGCREDIT RATINGSCREDIT RISKSCURRENCYCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSCURRENT ACCOUNT SURPLUSESDEBTDEBT BURDENSDEBT CRISESDEBT CRISISDEBT LEVELSDEFLATIONDEMAND FOR CREDITDEPOSITDEPOSITSDEVALUATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING COUNTRY EQUITYDOMESTIC MARKETSDURABLEECONOMIC CONDITIONSECONOMIC DEVELOPMENTSECONOMIC EXPANSIONECONOMIC GROWTHECONOMIC OUTLOOKECONOMIC POLICIESEIBEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET ECONOMIESEMERGING MARKETSEQUITY CAPITALEQUITY INVESTMENTEQUITY MARKETSEUROPEAN CENTRAL BANKEXCHANGE RATEEXPENDITURESEXPORT GROWTHEXPORTSEXTERNAL FUNDINGFEDERAL RESERVEFEDERAL RESERVE BANKFINANCIAL FLOWSFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SECTOR INDICATORSFINANCIAL SUSTAINABILITYFISCAL DEFICITFISCAL DEFICITSFISCAL POLICYFLOATING EXCHANGE RATESFORECASTSFOREIGN BANKFOREIGN BANKSFOREIGN CAPITALFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFULL EMPLOYMENTGDPGDP PER CAPITAGLOBAL FINANCIAL STABILITYGOVERNMENT BONDSGOVERNMENT REVENUESGROSS DOMESTIC PRODUCTGROSS DOMESTIC PRODUCT GROWTHGROWTH RATEHOST COUNTRYHOUSEHOLD INCOMESHOUSEHOLD SAVINGHOUSINGHUMAN CAPITALHUMAN CAPITAL DEVELOPMENTINCOME GROWTHINCOME INEQUALITIESINCOME TAXINDEBTEDNESSINFLATIONINFLATION RATEINFLATION RATESINSTITUTIONAL INVESTORSINTEREST PAYMENTSINTEREST RATEINTEREST RATESINTERNATIONAL BANKINGINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL FINANCIAL STATISTICSINTERNATIONAL SETTLEMENTSINVENTORIESINVESTMENT ACTIVITYINVESTMENT PROJECTSINVESTMENT RATESJUDICIAL SYSTEMLABOR COSTSLABOR MARKETLABOR MARKETSLEGAL FRAMEWORKSLIQUIDITYLOANLOCAL MARKETSLONG-TERM INTERESTLONG-TERM INTEREST RATESMACROECONOMIC PERFORMANCEMACROECONOMIC POLICIESMACROECONOMIC STABILIZATIONMARKET CONDITIONSMARKET REFORMMARKET REFORMSMIDDLE INCOME COUNTRIESMINISTRIES OF FINANCEMONETARY FUNDMONETARY POLICIESMONETARY POLICYNATIONAL BANKNET EXPORTSNON-PERFORMING LOANNON-PERFORMING LOANSNONPERFORMING LOANSNPLPENSIONPENSION REFORMPENSION SYSTEMPENSIONSPER CAPITA INCOMEPERSONAL INCOMEPORTFOLIOPORTFOLIO INVESTMENTPORTFOLIO INVESTMENTSPORTFOLIOSPRICE DECLINESPRICE STABILITYPRIVATE CAPITALPRODUCTIVITYPUBLIC DEBTPUBLIC FINANCEPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC SECTOR BORROWINGPURCHASING POWERRATES OF INFLATIONREAL ESTATE LOANSREAL GDPREAL INTERESTREAL INTEREST RATESRECAPITALIZATIONRECESSIONREGULATORY FRAMEWORKREGULATORY FRAMEWORKSRETURNRISK AVERSIONRISK FACTORSECURITIESSECURITIES MARKETSSOLVENCYSOVEREIGN BONDSSOVEREIGN DEBTSOVEREIGN RATINGSOVEREIGN RATINGSSTOCKSSUBSIDIARIESSUBSIDIARYSUPPLY OF CREDITTAX RATETAXATIONTOTAL FACTOR PRODUCTIVITYTRADE BALANCESTRADINGTRANSACTIONTRANSPARENCYTREASURIESTURNOVERUNDERLYING ASSETSUNEMPLOYMENTUNEMPLOYMENT RATEUNEMPLOYMENT RATESVALUE ADDEDWAGESWEALTHWITHDRAWAL10.1596/20072