what kind of economy does eastern europe have

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Is Eastern Europe more industrial than Western Europe?

Western Europe: Western Europe is economically more advanced as well as prosperous. Eastern Europe: Eastern Europe is comparatively less advanced regarding the economy. Western Europe: More Catholics and Protestant Christians can be seen. Eastern Europe: Most people follow Orthodox Christianity or Islam.

Why is Eastern Europe less developed than Western Europe?

It has a role, but the Eastern Europe was significantly poorer the the Western Europe for pretty long time now and from the age of discovery on, the gap started to get wider. Eastern Europe was not connected to wealth coming from colonial overseas trade because it is mostly land based part of Europe.

Is Eastern Europe more developed then Western Europe?

Eastern Europe is considered to be less economically developed than Western Europe. Greek, Byzantine, Russian, Eastern Orthodox, and some Ottoman influences can be seen in Eastern Europe. In comparison to Western Europeans, Eastern Europeans are more conservative and orthodox.

What is the worst economy in Europe?

With a per capita GNI of $3,540, Ukraine is the poorest country in Europe as of 2020. Ukraine once had the second-largest economy in the USSR. However, when the USSR collapsed, Ukraine had difficulty transitioning into a market economy, which sent much of the population into poverty.

What are the Eastern European economies?

In 2016, only three East European economies—Bulgaria, Romania, and Slovakia—are on pace to exceed 3 percent annual GDP growth. Estonia, Croatia, Latvia, Lithuania, Hungary, and Slovenia are all growing more slowly than the euro area average.

What does Eastern Europe's economy depend on?

Eastern Europe is a bright spot of economic growth. Simultaneously, high sales growth comes from car distribution, the food industry and wholesale trade. Other major industries include Biotechnology, Education, and the Consumer Goods sectors.

What type of economy does most of Europe have?

Europe, much like the United States, is a free market economy based on the movement of capital; the economy of Europe has a GDP of around 20 trillion US dollars and includes nearly 750 million people in about 50 different countries.

What is the economic difference between Eastern and Western Europe?

Eastern Europe is considered to be less economically developed than Western Europe. Greek, Byzantine, Russian, Eastern Orthodox, and some Ottoman influences can be seen in Eastern Europe. In comparison to Western Europeans, Eastern Europeans are more conservative and orthodox.

Which region of Europe is the most economically developed?

The French capital region of Île-de-France had by far the largest economy in GDP terms (EUR 739 billion), and was followed by the northern Italian region of Lombardia (EUR 399 billion) and the southern German region of Oberbayern (EUR 281 billion).

Which country has the strongest economy in Europe?

the GermanGDP of European countries in 2021. With a Gross Domestic Product of over 3.57 trillion Euros, the German economy was by far the largest in Europe in 2021. The similar-sized economies of the United Kingdom and France were the second and third largest economies in Europe during this year, followed by Italy and Spain.

What are the top 5 economies in Europe?

Europe's largest national economies with GDP (nominal) of more than $1 trillion are:Germany (about $4.3 trillion),United Kingdom (about $3.2 trillion),France (about $3.1 trillion),Italy (about $2.1 trillion),Russia (about $1.7 trillion),Spain (about $1.5 trillion),Netherlands (about $1.0 trillion),

Which is strongest economy in world?

the USAWith a GDP of 23.0 trillion USD, the USA is by far the world's largest economy in this ranking for 2021. It is followed by China in second place with a GDP of 17.7 trillion USD. Canada is also quite far ahead in the international comparison and occupies the ninth place in this ranking.

Which country has the best economy?

#1 Singapore. Read More About SingaporeSingapore's economic freedom score is 84.4, making its economy the freest in the 2022 Index.

What is a major difference between Eastern and Western Europe quizlet?

What is a major difference between Eastern and Western Europe? Most of Western Europe is made up of colder climates due to its proximity to the Atlantic Ocean, whereas the continental climates of Eastern Europe are generally warmer.

What is the main divide between Eastern and Western Europe?

Post-war Europe would be divided into two major spheres: the Western Bloc, influenced by the United States, and the Eastern Bloc, influenced by the Soviet Union. With the onset of the Cold War, Europe was divided by the Iron Curtain.

What is the main religion in Eastern Europe?

OrthodoxyTable of Contents. Orthodoxy is the dominant religion in Central and Eastern Europe, and the majority religion in 10 of the 18 countries surveyed. Overall, nearly six-in-ten people in the region (57%) identify with this Christian tradition.

How is the Europe economy?

The EU as a whole is the second largest economy in the world, below the US by about $5 trillion....Economy of Europe.StatisticsPopulation748 million (2021)GDP$22.9 trillion (Nominal; 2018) $26.7 trillion (PPP; 2017)GDP growth2.4% (2017)GDP per capita$27,330 (2017; 3rd)4 more rows

Is Eastern Europe emerging markets?

Examples of emerging markets include many countries in Africa, most countries in Eastern Europe, some countries of Latin America, some countries in the Middle East, Russia and some countries in Southeast Asia.

Is Eastern Europe growing?

GDP growth forecast: Eastern Europe, U.S., U.K. and Germany 2010-2026. Annual gross domestic product (GDP) growth rates were-3.41 percent for the United States, -9.84 percent for the United Kingdom, -4.56 percent for Germany, and -4.23 percent for Eastern Europe in 2020.

What were the effects of Eastern Europe's economic problems and ethnic and religious tensions?

Describe the effects of Eastern Europe's economic problems and ethnic and religious tensions. People lost faith in democracy, and new dictators emerged by promising stronger order and placing blame for economic problems on Jewish people.

How many EU countries use the Euro?

Currently, 19 of the 27 EU member states use the euro. Each EU member's central bank is part of the European System of Central Banks, and in addition, those that use the euro are part of the European Union's central bank, the European Central Bank .

What is the Commonwealth of Independent States?

Commonwealth of Independent States. The Commonwealth of Independent States (CIS) is a confederation consisting of 9 of the 15 states of the former Soviet Union, (the exceptions being the three Baltic states, Georgia, Turkmenistan, and Ukraine (Turkmenistan and Ukraine are participating states in the CIS)).

What is the financial sector in Europe?

Europe has a well-developed financial sector. Many European cities are financial centres with London being the largest. The financial sector of the Eurozone is helped by the introduction of the euro as common currency. This has made it easier for European households and firms to invest in companies and deposit money in banks in other European countries. Exchange rate fluctuations are now non-existent in the Eurozone. The financial sector in Central and Eastern Europe is helped by economic growth in the region, European Regional Development Fund and the commitment of Central and Eastern European governments to achieve high standards.

What is Europe's manufacturing industry?

Europe has a thriving manufacturing sector, with a large part of the world's industrial production taking place in Europe. Most of the continent's industries are concentrated in the ' Blue Banana ' (covering Southern England, the Benelux, western Germany, eastern France, Switzerland, and northern Italy). However, because of the higher wage level and hence production costs, Europe is suffering from deindustrialization and offshoring in the labour-intensive manufacturing sectors. This means that manufacturing has become less important and that jobs are moved to regions with cheaper labour costs (mainly China and Central and Eastern Europe).

What countries are part of the CEFTA?

The Central European Free Trade Agreement (CEFTA) is a trade bloc of: Albania, Bosnia and Herzegovina, North Macedonia, Moldova, Montenegro, Serbia and the United Nations Interim Administration Mission in Kosovo (UNMIK) on behalf of Kosovo.

What happened after the Revolutions of 1989?

After the Revolutions of 1989, states in Central Europe and the Baltic states dealt with change, former Yugoslavian republics descended into war and Russia, Ukraine and Belarus are still struggling with their old systems.

How does agriculture help Europe?

The process of improving Central Europe's agriculture is ongoing and is helped by the accession of Central European states to the EU. The agricultural sector in Europe is helped by the Common Agricultural Policy (CAP), which provides farmers with a minimal price for their products and subsidizes their exports, which increases competitiveness for their products. This policy is highly controversial as it hampers free trade worldwide ( protectionism sparks protectionism from other countries and trade blocs: the concept of trade wars) and is violating the concept of fair trade .

Why is international trade important in Eastern Europe?

Because the countries of Eastern Europe are small and situated near the great market of the European Economic Community, another important component of liberalization has been the opening up of international trade. In the short run the opportunity to trade with the West has provided instant competition, greatly diminishing the domestic monopoly power of monolithic state enterprises. In the long run, international trade holds the key to the eventual integration of the economies of Eastern Europe with the economies of the West.

How did the financial crisis start?

The genesis of the financial crises came from deep within the system. Subsidies ballooned as governments tried to keep the prices of many consumer products and services low for households and tried to keep profits high in state enterprises (where managers were too willing to grant excessive wage increases). Credits to enterprises also ballooned in support of the huge appetite for investments on the part of state enterprises (where managers craved investment projects that might add to their power and prestige). Subsidies and credits were paid by printing money, which led to a steady buildup of demand throughout these economies. The ballooning of demand created shortages wherever price controls were inflexible, inflation wherever prices were allowed to rise, and external debt and balance of payments crises in most countries. The buildup of demand in Poland, for example, can be seen clearly in the gap between the black market exchange rate and the official one, which rose from 250 percent in early 1988 to 500 percent in mid-1989.

What factors distorted prices?

Prices for energy and household necessities (mainly food and rent) were kept very low. Another factor that distorted prices was the overvalued domestic currency. It was kept so overvalued that it could not be converted into foreign currency. Instead, governments rationed the limited amount of foreign exchange available. Those not receiving official exchange usually had to pay much more to buy dollars in the black market. Therefore, most imported goods were severely rationed or available only at high blackmarket prices.

How did the printing of money affect the economy?

Subsidies and credits were paid by printing money, which led to a steady buildup of demand throughout these economies. The ballooning of demand created shortages wherever price controls were inflexible, inflation wherever prices were allowed to rise, and external debt and balance of payments crises in most countries.

What are the three elements of economic transformation in Eastern Europe?

The countries of Eastern Europe have three basic elements of economic transformation in common: stabilization, liberalization, and privatization.

How did Eastern Europe stave off collapse?

Some countries in Eastern Europe sought to stave off collapse by replacing central planning with decentralized decision making. These communist-led reforms brought some improvement but did not lead to the emergence of normal competitive market relations.

What complicates the process of economic transformation?

What complicates the process of economic transformation is the burden posed by the inheritance of the communist economic system. One Russian pundit, commenting on the communist legacy, explained that anyone can turn an aquarium into fish stew, but it is much harder to turn fish stew into an aquarium. The communist inheritance has had two important dimensions for Eastern Europe.

How many people are in Europe's economy?

The economy of the European continent encompasses at least 740 million people from 50 states. While the wealth of the different nations vary, the states that are considered poor in Europe are richer than some of the wealthy nations in other continents regardless of which method is used to measure the economy. These methods could either use the exchange rates of the nation’s currency while ignoring the living standard and cost of living (nominal gross domestic product), or the method could ignore exchange rates and instead focus on the standards and cost of living otherwise known as the purchasing power parity (PPP) gross domestic product (GDP). Both nominal GDP and PPP are used to provide greater perspective on a state’s economy.

Which country is third in the world?

France is third on the list with $2.4 trillion. The UK and France place them in fifth and six positions, respectively in the world. Italy and Russia complete the top five of Europe with economies worth $1.8 trillion and $1.5 trillion respectively. These five nations contribute around 15% of the total world economy with a combined value ...

Which continent is the third wealthiest?

Together, the economies in this list contribute around 22.29% of the total global economy, with the inclusion of Turkey which whose territory spreads into two continents; Europe and Asia. A significant amount of that percentage comes from the top seven countries in the list compiled by the International Monetary Fund (IMF). Ranking the continents according to their wealth, Europe is the third wealthiest continent. Asia is first while North America is second.

Which country is in the bottom three?

The other two countries that make up the bottom three are Austria at position fourteen, and an economy worth $383 billion (0.492%), and Norway is twelfth with a share of 0.503% ($392 billion) of the world’s economy. Comparing these figures with those released in 2016 by the IMF, there is very little change in the ranking.

Where is wheat grown?

Wheat is grown on the better soils, oats and rye on the poorer soils and moister lands. Mixed farming and the use of well-tried crop rotations are widely practiced. Viticulture, although widely distributed south of about latitude 50° N, is especially important in Italy, France, and Germany.

How did modernization affect agriculture?

The traditional method of cultivation involved periodically allowing land to remain fallow; this gave way to continuous cropping on more efficiently plowed fields that were fertilized with manure from animals raised as food for rapidly expanding urban markets. Greater wealth was accumulated by landowners at the same time that fewer farmhands were needed to work the land. The accumulated capital and abundant cheap labour created by this revolution in agriculture fueled the development of the Industrial Revolution in the 18th century.

What is the core-periphery problem?

This “core-periphery” problem has been particularly acute in situations where the contrasting regions are inhabited by different ethnic groups. Lessening such disparity continues to be a priority for national governments as well as the EU.

What was the first modern economy in Europe?

Europe was the first of the major world regions to develop a modern economy based on commercial agriculture, industrial development , and the provision of specialized services. Its successful modernization can be traced to the continent’s rich endowment of economic resources, its history of innovations, the evolution of a skilled and educated labour force, and the interconnectedness of all its parts—both naturally existing and man-made—which facilitated the easy movement of massive quantities of raw materials and finished goods and the communication of ideas.

What is Europe's biggest producer?

Its yields of rye, potatoes, oats, and wheat are among the world’s largest. Land use in Europe.

What are the major crops in Belarus?

As for industrial crops, Russia, Ukraine, and Belarus are large producers of fl ax and hemp, sugar beets (also grown widely elsewhere as a rotation crop), and (except for Belarus) sunflower seeds (for edible oil). Tobacco is grown in Belarus and also is important in Bulgaria, Italy, and Macedonian Greece.

How much land is arable in Europe?

Arable land in Europe covers less than one-third of the total area, a favourable comparison, for example, with the United States (about one-fifth). Figures for individual countries vary sharply, from about one-half of the land in Denmark to less than one-twentieth in Norway.

What was Poland's economy before communism?

Poland produces cars, buses, helicopters, trains, and heavy military equipment, including tanks and ships. Before the Communists industrialized the Polish economy, it was largely agrarian . Though Poland continues to be one of Europe’s leading agricultural producers, with a wide variety of crops and dairy and meat production, it is unable to meet the food demands of its large population. Poland’s economy is still considered to be under development. Reforms, including privatization, must continue before Poland can adopt the euro, the common EU currency.

What is the post communist Hungary?

An important characteristic of post-Communist Hungary is its desire to become an active member of the global community by joining international organizations. In 1990, Hungary was the first Eastern bloc nation to join the Council of Europe. In 2004, Hungary joined the EU.

What happened in 1989?

At the same time, the world watched as the Chinese government violently cracked down on student protests in the Tiananmen Square protests of 1989 , which strengthened the revolutionary sentiments and intentions of many people in the Eastern bloc, the former Communist countries of Eastern Europe.

What happened to Eastern Europe in the 1990s?

The collapse of Communism and the Soviet Union led to upheaval and transition in the region of Eastern Europe in the 1990s. Each country in the region was under Communist rule. The countries bordering Russia were once part of the Soviet Union, and those countries not part of the Soviet Union were heavily influenced by its dominant position in ...

What were the transitions in Eastern Europe after the Cold War?

Transitions of Eastern Europe after the Cold War. The physical barrier in the form of walls, barbed wire, or land mines that divided Eastern Europe and Western Europe during the Cold War. . Eastern Europe fell under the influence of the Soviet Union, and the region was separated from the West.

Which group wanted independence?

The Serb group supported Greater Serbia; the Bosnian group wanted independence. In March 1994, the Croat group signed an agreement joining with the Bosnian group against the Serbs. In 1995, with strong pressure from Europe and the United States, the warring groups signed a peace agreement known as the Dayton Accord.

Which two countries did Czechoslovakia split into?

Czechoslovakia peacefully agreed to separate into two states: the Czech Republic and the Republic of Slovakia. Yugoslavia was not so fortunate. Most Eastern European political borders resemble ethnic boundaries. Each of the regions once resembled nation-states.

Overview

Economic sectors

Europe's agricultural sector is in general highly developed. The process of improving Central Europe's agriculture is ongoing and is helped by the accession of Central European states to the EU. The agricultural sector in Europe is helped by the Common Agricultural Policy (CAP), which provides farmers with a minimal price for their products and subsidizes their exports, which increases competitiveness for their products. This policy is highly controversial as it hampers fre…

Economic development

Regional variation

Global trade relations

See also

External links