A Range of Factors Driving Growth Acceleration in Central and Eastern Europe

In 2004, nearly all countries of Central and Eastern Europe (CEE) recorded an acceleration of economic growth and once again outperformed in this respect the EU 15. However, the reasons for this have been different across individual countries. In the new EU member states domestic demand has picked up, Romania and Bulgaria have improved their competitiveness due to the surge in foreign direct investment, the Western Balkans have benefited from greater political stability, whereas Russia and Ukraine have taken advantage of the high world prices for their major export commodities: energy and metals.