- Abdul Abiad, Ashoka Mody, Susan Schadler, and Daniel Leigh
- Published Date:
- January 2007
Growth in the Central and Eastern European Countries of the European Union
Susan Schadler, Ashoka Mody, Abdul Abiad, and Daniel Leigh
INTERNATIONAL MONETARY FUND
© 2006 International Monetary Fund
Production: IMF Multimedia Services Division
Typesetting: Alicia Etchebarne-Bourdin
Figures: Bob Lunsford
Growth in the Central and Eastern European countries of the European Union/Susan Schadler … [et al.]—Washington, D.C.: International Monetary Fund, 2006.
p. cm.—(Occasional papers; 252)
Includes bibliographical references.
1. Europe, Central—Economic conditions. 2. Europe, Eastern—Economic conditions. 3. Europe, Central—Economic policy. 4. Europe, Eastern—Economic policy. 5. International Monetary Fund. I. Schadler, Susan. II. International Monetary Fund. III. Series: Occasional paper (International Monetary Fund); no. 252.
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The following conventions are used in this publication:
In tables, a blank cell indicates “not applicable,” ellipsis points (…) indicate “not available,” and 0 or 0.0 indicates “zero” or “negligible.” Minor discrepancies between sums of constituent figures and totals are due to rounding.
An en dash (–) between years or months (for example, 2005–06 or January–June) indicates the years or months covered, including the beginning and ending years or months; a slash or virgule (/) between years or months (for example, 2005/06) indicates a fiscal or financial year, as does the abbreviation FY (for example, FY2006).
“Billion” means a thousand million; “trillion” means a thousand billion.
“Basis points” refer to hundredths of 1 percentage point (for example, 25 basis points are equivalent to ¼ of 1 percentage point).
As used in this publication, the term “country” does not in all cases refer to a territorial entity that is a state as understood by international law and practice. As used here, the term also covers some territorial entities that are not states but for which statistical data are maintained on a separate and independent basis.
Having smoothly acceded to the European Union (EU) in May 2004, the overarching objective for the EU’s new member states is to continue raising living standards to Western European levels. This Occasional Paper examines the progress toward income convergence achieved by the the EU’s eight Central and Eastern European countries thus far, the prospects for further income convergence over the medium term, and the policy challenges that these countries will face in facilitating the catch-up process.
The paper was prepared by a team led by Susan Schadler and Ashoka Mody, with Abdul Abiad and Daniel Leigh. The paper benefited from comments by various departments of the IMF; by participants at a September 2005 conference on “European Enlargement: Implications for Growth” in Washington, D.C., and at a March 2006 conference on “New Europe, New Frontiers, New Challenges, New Opportunities” in Prague; and by participants at seminar presentations in Tallinn and Warsaw and at the IMF’s European Department. Material presented in this study was originally prepared as background for an IMF Executive Board seminar held in February 2006. The Acting Chair’s concluding remarks are reproduced on pages 53–54 of this publication.
The authors would like to thank Indra Mahadewa, Lina Shoobridge, Sylvia Young, and Indira Bhimani for assistance in preparing the manuscript; David Velazquez-Romero for excellent research assistance; and Esha Ray of the External Relations Department for editing the manuscript and coordinating production of the publication. The opinions expressed in the paper are those of the authors and do not necessarily reflect the views of national authorities, the IMF, or IMF Executive Directors.
Refers to Czech Republic, Hungary, Poland, Slovakia, and SloveniaCEEC
Central and Eastern European countryEBRD
European Bank for Reconstruction and DevelopmentEU
Foreign direct investmentGDP
Gross domestic productGFS
Government Finance StatisticsICRG
International Country Risk GuideICT
Information and communication technologyOECD
Organization for Economic Cooperation and DevelopmentPPP
Purchasing power parityPWT
Penn World TablesTFP
Total factor productivityWDI
World Development IndicatorsWEO
World Economic Outlook