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Financial Crisis Survey

10.06.2010 How are firms in eastern and central Europe operating in the aftermath of the global financial crisis? Although demand had picked up a bit from the last survey in mid-2009, firms seem to be meeting this demand by running down inventories, not by hiring or expanding operations. And firm indebtedness has worsened.

These and other interesting findings are highlighted in the table below. The results are based on a World Bank survey of 1,686 firms in June and July 2009 and a follow up survey of 1,892 firms in February and March 2010. The first round of surveys covered Bulgaria, Hungary, Latvia, Lithuania, Romania, and Turkey. Kazakhstan was added in round two. A total of 52 indicators were developed to measure the effects of the crisis on key elements of the private economy: sales, employment, finances, research and development, and expectations about the future.

Over the next few weeks Enterprise Surveys will provide more analysis of what the data shows. A follow up survey is being implemented starting June 2010.

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