Authors: Panayotis Gavras and Ghinea Arminio Iorga
The Black Sea Region was impacted severely by the advent of the September 2008 global financial and economic crisis. Access to financing disappeared, especially hitting economies that are dependent upon external financing flows. Timely government interventions averted financial collapse, but a sharp economic downturn followed, which for most countries has resulted since then in economic contraction and uncertainty concerning future performance. Black Sea countries are currently coping with the downturn, mostly individually, but recovery also depends on exogenous factors and developments, namely the situation internationally in general and within the eurozone in particular. Aside from increased official lending, there has been no direct support or cooperation at the regional and international level, nor has there been any support from the European Union’s side. A full return to previous high growth appears unlikely, but medium-term prospects are good for resumed growth, even at lower levels.
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