This will aggravate the economic burden. Let me now move on to the second distinguishing feature: The crisis is truly global in nature. Hence, we are confronted with a simultaneous shock to both domestic and external demand. In addition, an unprecedented degree of uncertainty is weighing negatively on consumption and investment.
As a result, especially small, open and strongly integrated economies – like the CESEE countries – are highly vulnerable in economic terms. Before relating these two features to the topic of this year’s conference, let me briefly review the most recent economic developments in the CESEE region.