A more sustainable growth model is moving forward
In 2015 the economic environment for banks operating in Central and Eastern Europe (CEE) has been rather positive. Despite some exceptions, most countries in the region showed strong economic growth and resilience against shifts in investors' sentiment towards emerging markets, which was in good part related to their deep integration with the euro area and solid macroeconomic fundamentals. Banking sectors in most countries have remained profitable, although the overall level is normalizing compared to the pre-crisis period. These are some of the key findings of the latest CEE Banking Study, which was conducted by UniCredit´s CEE Strategic Analysis department and which covers 13 different countries. Looking forward, economic recovery is expected to further support lending, especially in countries which have been lagging behind so far. Non-performing loan ratios, which are currently high in various countries, should decline.
“east crossroads europe” is a magazine which presents facts, reports, analyses, background information and interviews, providing an overview of global economic, political and cultural developments.
Set up in 2004 and supported by UniCredit, the “east” review is a bimonthly publication in English and Italian. Each issue is dedicated to a special topic. “east” was originally conceived as a publication focusing on the European Union and Europe, with special attention being given to Central and Eastern Europe and its relationship with Asia, particularly China and India.
However, with the rapid progress of globalisation, and also in response to the financial crisis in the past years, the scope of “east” has been broadened to include the western part of the world.
With interest rates extremely low and in some cases negative, real estate remains an attractive asset class – a fact that has also benefited the commercial property markets in the Czech Republic and Slovakia.
Commercial real estate markets in the Czech Republic and Slovakia registered new record investment levels last year. A trend which continued in the first quarter 2017 in the Czech Republic. Solid economic growth in both countries is bolstering property markets. Real GDP growth especially in Slovakia is significantly higher than that of the eurozone. Both real estate markets are by now classified as transparent and offer still relatively attractive yields.