ZEW-Erste Group Bank Economic Sentiment Indicator for Central and Eastern Europe (CEE) - Economic Sentiment Slightly Improves

Economic expectations for Central and Eastern Europe including Turkey (CEE region) have again slightly improved in January 2016. In the current survey, the ZEW-Erste Group Bank Economic Sentiment Indicator for the CEE region has increased by 4.8 points to a level of 4.9 points. Among the individual countries, the by far largest increase has been displayed by the indicators for the Czech Republic (up by 17.4 points) and Romania (up by 16.1 points). The ZEW-Erste Group Bank Economic Sentiment Indicator for Central and Eastern Europe reflects financial market experts’ expectations for the CEE region on a six-month time horizon. The indicator has been compiled on a monthly basis together with further financial market data by the Mannheim Centre for European Economic Research (ZEW) with the support of Erste Group Bank, Vienna, since 2007.

The indicator reflecting experts’ assessment of the current economic situation in the CEE region has decreased by 16.7 points to a level of minus 5.2 points in January. A large majority of 84.2 percent of the surveyed experts allege that the economic situation in the country is acceptable.

Survey Procedure and Methodology

The Financial Market Survey CEE is a survey carried out among financial market experts by ZEW and Erste Group Bank AG, Vienna. The target of this survey is to develop indicators describing the economic conditions in Central and Eastern Europe (CEE) as well as in Austria.

The CEE region observed in the survey consists of Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia and, since October 2010, Turkey.

The financial experts are surveyed about their assessment of the current business situation, the medium-term prospects of the respective economies and their expectations as to the development of the inflation rate, the short- and long-term interest rates, exchange rates and stock prices on a six-month time horizon. The analysts' assessments reflect the qualitative direction of the estimated changes. The quarterly 'Financial Market Report CEE' contains the results for every Central and Eastern European country in detail.

For further information please contact

Zwetelina Iliewa, Phone +49 (0)621/1235-346, E-mail iliewa@zew.de