Renaissance: Economic Revival of Central and East European Nations

Abstract

The economic growth rate of selected Central and East Europe (Germany, Hungary, Poland, Croatia, & Slovakia) countries was the high before the great depression of 2007-08. The progress registered by these countries during the tenure between early 1990s till financial crisis was good. Timely implementation of privatization, liberalisation and labour policies strengthened the system and attracted the flow of Foreign Direct Investment which enhanced growth in GDP in selected economies of central and East Europe. These economies struggled to get back to the similar position as they were once after the recession. A few were successful too. To strengthen the economy and increase the annual growth rate (4-5%), remodelling of economic models is the need of the hour. The results highlight that recessionary trends of 2007 had their repercussions on all the selected Central and East European economies. Germany grew at a fast rate compared to others in Gross domestic Product. The results suggest that there is a need to increase the investment levels; expand high value exports and also to augment in FDI inflow. The central and east Europe countries need to build the base for growth levels which includes improvement in infrastructure, fast growing urbanization, regulated policies, encouraging innovation and research and development, investing in high labour skills for succeeding the strategy.