Strong German growth has resulted in unexpected economic growth in CEE in the third quarter of 2010. The Czech Republic saw 3% growth, Slovakia 3.7% and even Hungary grew by 1.6%, 0.4% more than had been forecast.
“Hungary, Slovakia and the Czech Republic all expanded at a much faster pace than we had expected, while the Romanian economy shrank by less than we thought likely after last quarter’s fiscal squeeze,” said Neil Shearing, a London-based senior economist at Capital Economics. “The key driver was probably a rebound in industrial exports on the back of continued strong growth in Germany.”
Germany’s economy will expand 3.7 percent this year, the fastest pace in 19 years, the government’s council of economic advisers forecast this week. Third-quarter GDP, adjusted for seasonal effects, rose 0.7 percent from the previous three months, when it surged 2.3 percent, the Federal Statistics Office in Wiesbaden said today.