In 2013, the CIS countries will have higher indicators than the European Union - Fitch

In 2013, the economies of developing European states will grow by no more than 2.9%, Fitch Ratings rating agency said in their report “Sovereign issuers of Europe with a developing economy: forecast for 2013”.

Fitch analysts expect that the European Union markets will continue to stagnate in 2013 after falling by 0.5% in 2012. However, Fitch experts predict a slight increase in the economies of developing the country by 2.9% in 2013 compared with 2.3% in 2012.

“The CIS countries will have higher indicators than the states of Central and Eastern Europe, which will contribute to the Russian economy with rich natural resources. At the same time, a more confident recovery in Central and Eastern Europe is unlikely to be possible without a stronger height in the eurozone, ”the report says.

The report says that the aggregated budget deficit in the developing markets of Europe has become slightly larger in 2012, and the same trend is predicted for 2013.

“The countries of Central and Eastern Europe demonstrate progress with the implementation of plans to reduce the deficit, but there are examples of difficulties in this direction, while the CIS notes a decrease in surfaces. Slow growth makes it difficult to achieve a fiscal improvement. Only four of 19 countries with a developing economy will reduce the ratio of public debt to GDP in 2013, ”Fitch explained.

The main risk for the ratings of European countries with a developing economy, as noted in the report, was the strengthening of a debt crisis in the eurozone, which negatively affects the region through trade and financial relations.

“At the same time, the measures taken by the European Central Bank smoothed side risks. Sustainable restoration of the economy, a more favorable situation in the eurozone and the continuation of progress in the adjustment of public finance would be positive factors for sovereign creditworthiness, ”Fitch Ratings analysts emphasized.

Recall that in November of this year, the European Commission revised its forecast for the prospect of developing the economy of the European Union towards the decrease. According to the European Commission, in 2012, the total GDP of the countries of the currency union will decrease by 0.4%, although 0.3%were previously expected. The expected growth of the EUROZONA economy in 2013 will be only 0.1%, although an increase of 1%was previously expected. “The economy of Europe is still forced to cope with complex post-crisis correction. The plight of the most vulnerable participating countries is increasingly affecting the rest of the Union, ”the European Commission reports.