Wednesday, October 20, 2010

Look Out for Eastern Europe

Missed this last week... Extremely strong industrial production out of eastern Europe...

A few points...

The Good

  • It seems that everyone had been counting out Eastern Europe (including me)
  • The European Union "should" allow lower GDP per capita countries (i.e. Eastern Europe) outpace higher GDP per capita countries simply by utilizing new technologies / open trade

The Bad

  • The above chart shows the rebound off a large collapse, so it remains to be seen if this is a rebound or the start of a longer trend
  • The above was before the Euro spiked up 15-20%, so we'll see if the drag of a stronger currency on exports impacts these countries

Source: Eurostat