Competition, Cooperation, European Solidarity.

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Central and Eastern Europe 2004-2011

For the third time PwC presents to the Economic Forum in Krynica a report on the economic development of the Central and Eastern European (CEE) countries.

The economic development of the Central and Eastern European countries (CEE) over the last 7 years was taking place under extremely volatile conditions and was marked by dramatic turning points.

In spite of this, the region recorded a significant growth of per capita income, as well as a progress in modernization of the economy. Strengthening economic ties with the European Union (EU), in many cases leading to the membership in the block, was one of the most important factors behind the recorded changes.

The countries of the region started building the market economy during the 1990s, after the collapse of the communist system. Early reforms proved to be extremely difficult, leading to a significant fall of output, and creating serious hardship for the societies. In spite of this, and despite different pace at which the reforms had been introduced in various countries, by the end of the century all CEE countries entered the path of the economic growth. Nevertheless, some questions regarding the sustainability of the growth remain unanswered, and the income gap vis-à-vis Western Europe remains huge.

Moreover, various paths of the transition led to the creation of various models of market economy in the CEE countries, with various prospects for future growth.