Eastern Europe is often thought of in researching global markets.  A reason for this is often the lack of information and the lack of familiarity with such markets.  Those who do research in Eastern Europe need to be aware of pitfalls that precede the research process and that can ultimately impact the intelligence yield.

• Market Research is Lacking
• Market research is not abundant
• Published Information Often Misleading
• Researchers may often find conflicting information or inflated details that fit a particular viewpoint or agenda.
• Published information is often missing key information and statistics
• Leads to biased publications and rankings for statistics and industry information
• It is the researcher's imperative to determine the efficacy of information based on the source of information and the quality of data
• The need for Market Intelligence and Competitive Intelligence
• Market Intelligence is lacking, limiting a comprehensive view of the market.  Instead, anecdotes and preconceptions can guide business leaders in decision making.

In some situations, a way to avoid some of these pitfalls is carefully conducted primary research.  Indeed, the situation itself will dictate the proper remedy to avoid problems in data collection.

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Lithuania boasts high economic growth but has a sizeable current account balance affecting its economic landscape.

Economic Structure

• Rapid growth following 1998 Russian financial crisis
• GDP: $28.57 billion
• Real GDP Growth: 8%
• Unemployment: 3.2%
• Rapid Real Wage Growth
• Inflation: 2.4% (2007 CPI est.)
• Current Account Balance: -9.2%

Demographic:

• Median Age
• Male: 36.4 years
• Female: 41.6 years
• Sex Ratio
• Under 15 years: 1.05 male(s)/female
• 15-64 years: 0.96 male(s)/female
• 65 years and over: 0.53 male(s)/female
• Income per Capita: $16,700
• 2008 population growth estimate is -.284%
• Literacy rate: 99.6% (for men and women)

Lithuania By Sector:

• Agriculture
• Changes from collectivization to private to capital-scaled farms
• Construction
• 15% annual growth
• Almost completely privatized
• Shift from Russian to domestic contracts
• Manufacturing
• Leather and Textiles are biggest manufacturing sectors
• Wood and Furniture growing the fastest
• Export to UK and Sweden (60% of exports to Sweden are for IKEA)
• Financial Services
• Consolidation: 9 commercial banks, 90% foreign capital
• Falling interest rates fuel strong growth

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Latvia, a member of the EU since 2004, is facing serious economic challenges.  The economy may be overheating and the current account balance is an economic indicator many are watching.

Economic Structure

• Latvia faces economic problems
• Overheating? Government/Central Bank slow to respond
• Current Account Balance: -$5.84 billion, 22% of GDP
• High inflation: 6.5% (2007 CPI est.)
• Currency is pegged to the Euro, increasing inflation
• Privatization of Real Estate and Banks
• WTO in 1999, EU in 2004
• GDP: $27 billion
• Real GDP Growth: 10.7%
• Unemployment: 5.9%
• Riga (capital) produces 57% of GDP

Demographic:

• Median Age
• Male: 36.9 years
• Female: 43 years
• Sex Ratio
• under 15 years: 1.05 male(s)/female
• 15-64 years: 0.95 male(s)/female
• 65 years and over: 0.49 male(s)/female
• Income per Capita: $17,700
• Ethnically diverse
• Life expectancy at birth: 72 years

Latvia By Sector:

• Forestry and Woodworking
• Large natural supple of timber
• Dependence on Russia
• Hurt by Russian financial crises, major import/export partner
• Russia attempting to transport goods via its own ports
• Construction
• 14% increase in 2007, 7% of overall GDP
• Strong investment and booming housing market
• Population density linked with job opportunities
• Fewer schools, healthcare, public services in rural areas
• Best to concentrate focus on major cities

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Slovenia is the richest nation in Eastern Europe.  Lesser known by companies in examining Eastern European markets, we decided to analyze the current economics situation.

Slovenia's Economic Structure

• Richest nation in Eastern Europe
• Former trading arm of Yugoslavia
• Strong ties with western trade partners
• GDP: $45.9 billion
• Real GDP growth: 6.3%
• Inflation: 3.5% (2007 CPI estimate)
• Current Account Balance: -$1.5 bn

Slovenia's Demographics:

• Median Age
• male: 39.8 years
• female: 42.9 years
• Sex Ratio
• under 15 years: 1.06 male(s)/female
• 15-64 years: 1.02 male(s)/female
• 65 years and over: 0.64 male(s)/female
• GDP per Capita: $27,300
• Religiously diverse
• Literacy rate: 99.7%

Slovenia By Sector:

• Increase in light manufacturing and services
• Pharmaceuticals
• Electrical Engineering
• Automotive
• Revoz is top exporter
• Slovenia division of Renault
• Ideal geographic location
• Transportation services for increasingly integrates nations
• Heavy investment in infrastructure
• Tourism
• Recent increase in tourism receipts
• Financial Services
• Domestically grown, difficult for foreign firms to invest

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Estonia has long been a hot spot for Finnish businesses and vacationers.  The Baltic country is receiving significant inflows from abroad as European companies view areas of potential in the economy.

Economic Structure

• 2004 Joined NATO and EU
• Stronger economic growth due to structural funds and foreign investment
• GDP: $21.2 billion
• Real GDP Growth: 7.3%, projected 2.2% 2008, 3% 2009
• Overheating?
• Demand putting upward pressure on prices, wages
• Losing competition to China
• Inflation: 3.9% (2007 CPI est.)
• Current Account Balance: (-$3.1 billion)
• Unemployment: 5.2%
• Major trade partner with Finland (16% imports, 22% exports)

Demographic:

• Conflict between Estonians and Russians
• Highlighted by relocating Russian statue
• Median Age
• Male: 36.2 years
• Female: 43.2 years
• Sex Ratio
• under 15 years: 1.06 male(s)/female
• 15-64 years: 0.91 male(s)/female
• 65 years and over: 0.5 male(s)/female
• total population: 0.84 male(s)/female
• Income per Capita: $21,800
  

Estonia By Sector:

• Freight Transport
• Port of Tallinn
• Dependent on Russian cargos
• Fluctuates with political environment
• Air freight
• 8-9% annual growth through 2011
• Road frieght
• 4.5% annual growth fueled by trade with Europe
• Electronics and Telecommunications

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Disclaimer: Under no circumstances will SIS, it affiliates, successors or assigns be liable for any loss or damage caused by anyone's reliance on information contained in this web site.  Refer to this website's disclaimer page for full description of limitations.

        

Serbia boasts strong GDP growth but faces continued political instability and corruption.

Serbia's Economic Structure

• GDP: $41.44 billion
• Real GDP growth rate: 7% (2007 est.)
• Inflation: 11.2% (2007 CPI est.)
• Current Account Balance: 8.9%
• High unemployment rate: 18.8% (2007 est.)
• Increase in economic growth rate after ousting Milosevic in 2000
• Political instability due to unresolved Kosovo issue
• Serbia has a large amount of foreign debt and a high export deficit
• Country is making attempt to dramatically increase exports
• Major goal is to gain admission to EU
• EU is Serbia’s most important trading partner

Serbia's Demographics:

• Median age
• Male: 36.1 years
• Female: 39 years
• Sex Ratio
• Under 15 years: 1.07 male(s)/female
• 15 – 64 years: 0.97 male(s)/female
• 65 years and older: 0.68 male(s)/female
• Highest malnutrition rate in Eastern Europe as of 2003
• 9% of population undernourished, compared to 2.5% in Germany, Ukraine, Poland, United States, etc.

Serbia's Industry Sector:

• Exporter of manufactured goods, food, and live animals
• In last 10 years, EU has contributed money to increasing livestock inspections, food safety, and lab modernization
• EU also contributing to infrastructure development
• Serbia is looking to become a regional hub for air transportation
• Serbia will import environmental technology to fulfill its EU admission requirements
• Will see increase in unleaded gasoline, filters, etc.
• Telecom is Serbia’s fastest-growing industry
• Annual growth-rate of 18.3% in telecom sector

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Croatia is often noted for its premier tourist sites.  Despite slowdowns in the global economy, Croatia is likely to grow substantially this year.  We set out to study the extent of Croatia's growth.

Economic Structure

• GDP: $50.96 bn
• Moderate, steady GDP growth around 4-6%
• Per Capita Income: $12,863
• Unemployment: 11.8%
• Current Account Balance: -$3.836 bn, -7.1% of GDP
• Economic future: GDP growth expected around 10% for 2008-2009
• Trade deficit growing: $5.07 bn in 2007, a 5-year high
• Uneven regional development
• Economy heavily influenced by state
• Privatization often resisted by both politicians and the public
• Currently furthering agenda of EU mandated reforms, though at slow pace
• Especially slow in politically sensitive areas such as agriculture, fishing, ship-building, and steel
• EU entry expected in 2011, at earliest

Demographic:

• Median Age
• male: 38.9 years
• female: 42.6 years
• Sex Ratio
• under 15 years: 1.05 male(s)/female
• 15-64 years: 0.99 male(s)/female
• 65 years and over: 0.63 male(s)/female
• Largely Catholic population

Croatia's Industry Sectors:

• Tourism
• Tourism receipts cover about two-thirds of the merchandise trade deficit
• The tourism industry accounted for almost $10.8 bn last year
• Major trading partners are Italy, Germany, and Bosnia and Herzegovina
• Major imports are machinery, transport and electrical equipment; chemicals, fuels and lubricants; and foodstuffs
• Major exports are transport equipment, textiles, chemicals, foodstuffs, and fuels

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Disclaimer: Under no circumstances will SIS, it affiliates, successors or assigns be liable for any loss or damage caused by anyone's reliance on information contained in this web site.  Refer to this website's disclaimer page for full description of limitations.

        

Slovakia has been an EU member since 2004.  While growth may be lower in the upcoming months and the current account s expected to widen, the economy is still likely to expect growth.  We set out to examine the Slovakian economy as it currently stands.

Slovakia's Economic Structure

• Successful transition from planned to market economy
• Joined EU in May 2004
• Goal to adopt Euro on Jan 1, 2009
• GDP growth: 5.7%
• Fueled by exports and high domestic investment
• Manufacturing and construction
• Slovakia in the future
  
• 2008 GDP: 4.4%
• Government expenditures more significant than investment
• Inflation predicted to decrease from 2007 level (6.9%)
• Large Current Account deficit (-6.9% of GDP)
• Higher trade deficit expected for 2008

Slovakia's Demographics:

• 60% of Slovaks live in villages with fewer than 5,000 inhabitants
• To reach consumers, far reaching marketing efforts necessary
• Sex Ratio
• under 15 years: 1.05 male(s)/female
• 15-64 years: 0.99 male(s)/female
• 65 years and over: 0.6 male(s)/female
• Median Age
• male: 34.8 years
• female: 38.2 years
• GDP per Capita: $19,800

The Slovakian Economy, By Sector:

• Growing Tourism Sector
• Overnight stays above 8 million in 2007 for first time
• Italian and Austrian visitors largest groups
• More jobs in hotels, restaurants
• Manufacturing
• Advanced technology sectors growing
• Automotive, Transport Equipment
• Least advanced technology manufacturing sectors declining
• Leather, Textiles
• Banking Sector
• Largely in foreign control
• Major construction of highway infrastructure

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Disclaimer: Under no circumstances will SIS, it affiliates, successors or assigns be liable for any loss or damage caused by anyone's reliance on information contained in this web site.  Refer to this website's disclaimer page for full description of limitations.

        

Bulgaria, receiving less press than its neighbor to the north Romania, boasts strong economic growth.  Problems continue to plague the country, and time will tell whether EU membership will help to limit such corruption and inhibitions to rapid economic growth.

Economic Structure

• Strong Economic Growth since 1996
• Inflation (6.1% 2007 CPI est.) , Corruption still a problem
• GDP: $ 39.6 billion
• Real GDP Growth: 6.2% in 2007
• Peak of Economic Boom Cycle
• Projected 6% annual growth through 2012
• Unemployment: 6.9% (down from 9.7%)
• Nominal Wage Growth: 20.6%
• Current Account Balance: -12.2% of GDP
• Opportunity for Consumer Good Importers
• Imports: EUR24bn, EUR39bn by 2012
• Exports: 18 EURbn
• Consumption: 88% of GDP

Demographic:

• Median Age
• male: 38.9 years
• female: 43.4 years
• Sex Ratio
• under 15 years: 1.05 male(s)/female
• 15-64 years: 0.97 male(s)/female
• 65 years and over: 0.69 male(s)/female
• Income per Capita: $11,800
• Marriage 4x as common in urban areas as in rural areas
• 26,658 urban marriages versus 6,843 rural marriages in 2006

Bulgaria's Key Industries

• Minerals
• Coal, copper, and zinc
• Tourism
• 6% projected annual growth 2008-2012
• January 2008, government announced national strategy for increasing tourism from EUR2.4bn to EUR6bn
• Massive construction in hot spots (e.g. Black Sea)
• Residential House Prices: 30% Increase
• Largest in world for 2007

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Disclaimer: Under no circumstances will SIS, it affiliates, successors or assigns be liable for any loss or damage caused by anyone's reliance on information contained in this web site.  Refer to this website's disclaimer page for full description of limitations.

        

Romania has received significant attention from European firms looking to lower costs and identify market opportunities.  We set out to find out what is the strength of Romania's economy and what are its weaknesses.

Romania's Economic Structure

• Joined EU Jan. 1, 2007
• Real GDP: $168.8 billion (2007)
• Real GDP Growth: 5.9%
• Unemployment: 4.1%
• Inflation: 9.4% (2007 CPI est.)
• Current Account Balance: -9.4% of GDP

Romania's Demographic:

• Median Age
• male: 35.9 years
• female: 38.7 years
• Sex Ratio
• under 15 years: 1.05 male(s)/female
• 15-64 years: 0.99 male(s)/female
• 65 years and over: 0.69 male(s)/female
• Income per Capita: $11,100
• Has the most divorces in Eastern Europe
• 33,193 divorces in 2005

Industry Composition:

• Occupations 41% agriculture
• 4 million internet users increasing (21 mil population)
• Tax rate 16%
• Textile and Footwear
• Light machinery and Auto assembly
• Italy major import and export partner

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Disclaimer: Under no circumstances will SIS, it affiliates, successors or assigns be liable for any loss or damage caused by anyone's reliance on information contained in this web site.  Refer to this website's disclaimer page for full description of limitations.