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


  1. Wow, what happened in Norway?

  2. Not sure why...

    "With in the overall index, output of the oil and gas extraction sector recorded an annual fall of 18.9%, while electricity, gas and steam supply slipped 15.9%. Separately, the statistical office said the turnover in Norwegian manufacturing dropped 3.7% on a monthly basis in August and fell 1.4% over a year ago. The total turnover in manufacturing was almost unchanged in the June to August period compared to the previous three-month period."