Economic recovery in CESEE region hindered by high unemployment and financing constraints.
The world economy is slowly recovering from the financial crisis, with the EU and Central, East, and Southeast European countries showing positive GDP growth. Exports have been strong, but industrial output remains flat. Construction and investments are declining due to credit market issues. Economic growth is expected to strengthen gradually, with GDP growth becoming more balanced. However, unemployment will remain high, especially for young and low-skilled workers. Inflation is rising, but not a major concern. Current account positions are deteriorating in most countries, with financing constraints hindering future growth. Public finances are strained, limiting government support for economic growth.