Car production in CEE an appealing investment

Fritz Mostböck, head of Research at Erste Group, forecasts that every fourth car produced in the EU in 2013 will come from central and eastern Europe (CEE).

- We see CEE car producers as an appealing investment. Every fourth car produced in the EU in 2013 will be "Made in CEE" as the former Czechoslovakia - with 2 million passenger cars estimated in 2012 - is now the second largest car producer in Europe right after Germany - Mostböck says in an analysis.

- CEE car production is continuously gaining share on expense of car producers from Southern Europe benefiting from competitive labor costs and strong presence of German (VW, Skoda) and Asian manufacturers (Kia, Hyundai, Toyota) - he adds.

- Necessary governmental austerity measures all over the world will prevent the economy from returning to a boom phase in 2013 - foresees Fritz Mostböck.

According to Mostböck, investors should avoid investments in European telecom- and the utility sector "as their weak performance will last also in 2013 and afterwards.”

- After Croatia’s EU entry in July, we see up to 2.5% of GDP growth in 2014-2020 due to access to common market and to EU funds. The EU integration of the Balkans is expected to receive another boost during 2013 when Serbia is expected to get the kick-off date for negotiation - underlines Mostböck.