We expect Germany’s economy to be supported by the inventory correction as well as external demand in H1 2010. There are, however, significant downside risks to this forecast.
Rumours are mounting that a Greek syndicated bond issue is to be launched within days. This is an important event as the success or failure of such issuance will determine whether the Greeks have to go cap in hand to the European Commission or not.
The global financial crisis has brought the IMF, the World Bank and other International Financial Institutions (IFI’s) back to the spotlights. With large emergency loan packages, they have helped countries to deal with the severe economic shocks.
Dutch households withdrew €1.2 billion from savings accounts in October and November 2009. Does this mean that consumers are ready to increase spending? Or is this money merely meant to cover income losses?
Dutch Housing Market Quarterly Dutch version
The negative spiral afflicting the housing market for some time appears to be broken, and the housing market is stabilising. After a sharp decline in transactions from autumn 2008, the past half year has shown signs of a slight rebound.
Hungary struggled through the financial and economic crisis in 2009. The economy shrunk by 7% and there was little room for fiscal stimulus as Hungary had to adhere to the conditions of the IMF attached to the aid package.
Similar to other Eastern European countries, the financial crisis hit Bulgaria mainly through a drop in export demand, tighter credit facilities and general risk aversion against the region. The economy shrunk by 5% in 2009.