What are the causes of the expected halt in economic growth?
AI: The crisis may hit individual CEE economies differently. The economies of the region had not only different growth rates but also different engines of growth. Domestic consumption, investments and exports were the three usual factors for economic growth. In south-eastern Europe the main driving force was domestic consumption, and the crisis will hit them hardest. The Czech Republic, Slovakia, Poland and Hungary were benefiting from export growth and their future depends on the main exports markets, but Western Europe is the largest market for these countries. IPS: But Western Europe is going into recession… AI: The Czech Republic, Slovakia and Poland are deeply integrated in the German market, much more than Hungary, therefore the German recession will have a larger impact for them. It is important to see what will be the answer from big car manufacturing companies. They have more competitive subsidiaries in CEE, and if they cut production the question is where. If German taxpaye
