World Bank2014-02-102014-02-102013-12https://hdl.handle.net/10986/16988Economic prospects for the 11 European Union (EU) member states that joined after 2004 started to improve during 2013, as the situation in the Euro area stabilized and domestic policies bolstered growth. Economic growth across the EU11 is expected to continue to pick up in 2014 and to become more balanced, with rising domestic demand. Fiscal adjustment will resume in 2014, with domestic demand helping to rebuild revenue, but at a relatively gradual pace in order to support economic growth. Rising global interest rates coupled with volatile capital markets, can slow the Euro area recovery and hamper domestic demand, particularly investment, in EU11. The bottom forty percent in the EU11 tends to be concentrated in low skilled, young or older unemployed, and minority groups. Countries will need to accelerate economic growth and job creation, in an environment in which fiscal and credit constraints are more binding and household coping mechanisms have been weakened by the crisis. This report covers economic developments, prospects, and policies in 11 EU member states- Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic, and Slovenia. The regular economic report (RER) comprises two parts: a macroeconomic report, and a special topic on an issue of economic policy interest in EU11.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGADVANCED ECONOMIESAMOUNT OF RISKARREARSASSET CLASSESASSET PRICESASSET QUALITYBALANCE SHEETBALANCE SHEETSBALANCE-SHEETBANK EXPOSUREBANK FAILUREBANK FOR INTERNATIONAL SETTLEMENTSBANK LENDINGBANK OF ENGLANDBANK OF JAPANBANK RECAPITALIZATIONBANKING SECTORBANKING SECTORSBANKING SUPERVISIONBANKING SYSTEMBANKING UNIONBARRIERS TO ENTRYBASIS POINTSBENEFICIARIESBONDBOND FINANCINGBOND ISSUANCEBOND YIELDSBONDHOLDERSBORROWINGBORROWING COSTSBUDGET DEFICITSBUSINESS CONFIDENCEBUSINESS CYCLECAPITAL ADEQUACYCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETSCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCDSCENTRAL BANKSCONSOLIDATIONCONSUMER CONFIDENCECONSUMER LOANSCONSUMER PRICE INDEXCONSUMPTION EXPENDITURECONSUMPTION TAXESCREDIT CONSTRAINTSCREDIT DEFAULTCREDIT DEFAULT SWAPCREDIT GROWTHCREDIT RATINGSCREDIT RISKSCREDITORSCROSS-BORDER FLOWSCURRENT ACCOUNTCURRENT ACCOUNT SURPLUSDEBTDEBT CRISISDEBT FLOWSDEBT LEVELSDEBT RATIODEBT RATIOSDEBT SERVICEDEBTSDEPOSITDEPOSIT INSURANCEDEPOSITORSDEPOSITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDISPOSABLE INCOMEEARNINGSECONOMIC ACTIVITYECONOMIC CONDITIONSECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC POLICYEIBEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET ECONOMIESEMERGING MARKETSEMPLOYEEEMPLOYEREMPLOYERSEMPLOYMENTEMPLOYMENT GROWTHENTERPRISE GROWTHENTREPRENEURSENTREPRENEURSHIPEQUALITYEQUALITY OF OPPORTUNITYEQUIPMENTEQUITY CAPITALEUROPEAN CENTRAL BANKEXCHANGE RATEEXCLUSIONEXPENDITURESEXPORT GROWTHEXPORT PERFORMANCEEXTERNAL FINANCINGFEDERAL RESERVEFINANCIAL CRISISFINANCIAL INSTRUMENTSFINANCIAL MARKETSFINANCIAL SECTOR INDICATORSFINANCIAL SECTOR REFORMSFINANCIAL STABILITYFISCAL DEFICITFISCAL DEFICITSFISCAL POLICYFLOATING EXCHANGE RATESFOREIGN BANKFOREIGN BANKSFOREIGN CAPITALFOREIGN CURRENCYFOREIGN INVESTMENTFUNDING SOURCESGLOBAL CAPITALGLOBAL FINANCIAL STABILITYGLOBAL MARKETSGOVERNMENT BONDGOVERNMENT BOND YIELDSGOVERNMENT BONDSGROSS DOMESTIC PRODUCTGUARANTEE SCHEMESHOUSEHOLDSINCOME GROWTHINEQUALITYINFLATIONINFLATION RATEINFLATION RATESINFLATIONARY PRESSURESINFORMATION ON CREDITINSTITUTIONAL INVESTORSINSURANCEINTEREST PAYMENTSINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL FINANCIAL STATISTICSINVESTMENT DECISIONSINVESTMENT FUNDSISSUANCEJOB CREATIONLABOR MARKETLABOR MARKETSLABOR MOBILITYLAWSLEGAL FRAMEWORKSLENDING CONDITIONSLEVYLIQUIDITYLOANLOAN-TO-DEPOSIT RATIOSLONG-TERM COSTLONG-TERM INTERESTLONG-TERM INTEREST RATESMACROECONOMICSMARKET CONDITIONSMARKET REFORMSMINIMUM WAGEMINISTRIES OF FINANCEMINORITY GROUPSMONETARY FUNDMONETARY POLICYNON-PERFORMING LOANSNONPERFORMING LOANSNPLPENSIONPENSION FUNDSPENSION SYSTEMPENSIONSPERSONAL INCOMEPOLITICAL UNCERTAINTYPORTFOLIOPORTFOLIO INVESTMENTSPRIVATE INVESTMENTPRODUCTIVITYPROFITABILITYPRUDENTIAL REGULATIONPUBLIC DEBTPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC INVESTMENTSPURCHASING POWERPURCHASING POWER PARITIESRATES OF INFLATIONREAL ESTATEREAL ESTATE LOANSRECESSIONREGULATORY FORBEARANCEREGULATORY FRAMEWORKREPAYMENTSRISK AVERSIONSAVINGSSHADOW ECONOMYSHAREHOLDERSSOVEREIGN DEBTSOVEREIGN RATINGSOVEREIGN RATINGSSOVEREIGN RISKSUBSIDIARIESSUBSIDIARYSUPERVISORY FRAMEWORKSUPPLY OF CREDITSYSTEMIC RISKTAXTAX COLLECTIONTAX RELIEFTECHNICAL ASSISTANCETRADE BALANCESTRADINGTRANSACTIONTRANSACTION COSTSTRANSPARENCYTRANSPORTTREASURYTURNOVERUNEMPLOYMENTVULNERABLE GROUPSWAGESWITHDRAWAL10.1596/16988